Satellite navigation equipment company Trafficmaster reported a fall in full-year profit after weak first-half trading.
The business said it was confident of future growth after a strategy review and amid a strong US market.
Trafficmaster, whose black boxes are built into new cars and used to help businesses keep track of their fleet of trucks, said operating profit before exceptional items for the year to December 31 fell to £1.8 million, in line with market expectations, from £2.4 million a year earlier.
Pretax profit slipped to £935,000 from £4.8 million.
However, revenue rose 16 per cent to £42.3 million from £36.6 million, lifted by strong sales in the US where Traffic-master is the second biggest
supplier of fleet management tracking services.
In January the business said it had taken a £600,000 hit from the collapse of MG Rover.
Resulting restructuring of its UK operations had incurred a further £600,000 exceptional charge against the 2005 income statement.
The Bedfordshire-based business described the rise in second-half trading as "significant".
And yesterday chief executive Tony Eales said: "The strategic steps taken to reposition the UK business in the latter half of 2005 have lowered the cost base, improved service margins and built solid foundations based upon improved business fundamentals. Overall, we are confident that the progress made in the second half of 2005 will continue into 2006 and beyond."
The business said it expected to make cost savings of more than £2 million in 2006 after changes to its UK business, including a focus on partnerships and more profitable subscription services.
There was strong growth in the US where Trafficmaster's fleet tracking product, Teletrac, increased revenues by 23 per cent to £20.6 million.
Carl Franklin at Trafficmaster house broker Bridgewell Securities said: "The results are in line with the January trading statement but the outlook certainly seems encouraging."
Mr Franklin added, however, that much depended on a possible extension of a contract signed last year with insurer Norwich Union to supply in-car satellite traffic navigation technology as part of a "pay-as-you-drive" insurance policy.