LONDON, June 22 (Reuters) - UK traffic information firm ITIS Holdings Plc posted better-than-expected full-year sales and earnings on Tuesday and said it was confident of achieving profitability before its cash reserves run out.
ITIS, whose traffic messaging system supplies drivers with real-time traffic and route management data in a tie-up with auto services firm AA, said pre-tax losses before exceptionals narrowed by 15 percent to 5.4 million pounds ($9.9 million) in the year to March 31.
"We are now entering into an exciting and high-growth period, attracting new partners and customers in the UK and opening international markets where this can be done without diverting resource from the core business," Chief Executive Stuart Marks said in a statement.
Turnover rose 85 percent to 7.06 million pounds on the back of new contracts with several car makers and government departments to supply traffic data.
Market forecasts were for a 7.0 million pound pre-tax loss on 7.0 million pounds turnover, according to Reuters Estimates.
At 1105 GMT the AIM-listed stock, which has almost doubled over the past year, was down by a quarter penny to 25-1/2 pence.
"The figures were fantastic, we thought," one London dealer said. "Their turnover increased considerably (and) they have very good contracts signed up."
ITIS said it had won contracts Since the start of its new financial year with car makers Land Rover and Nissan and renewed its contract with Toyota .
ITIS said this followed rigorous evaluation of its messaging service after a report commissioned by rival Trafficmaster concluded its data was more comprehensive than ITIS's.
Like Trafficmaster, ITIS provides traffic information and a stolen vehicle tracking service through its NavTrak arm.
It broadcasts data, collected from sensors placed inside fleets of lorries, to in-car navigation systems via the Classic FM radio network and across Britain's mobile phone networks.
Through its acquisition of Israeli-based Estimotion, it now has technology to measure traffic flow using the position of mobile phones.
It has entered a government-sponsored trial to collect traffic information in Scotland in partnership with UK mobile phone operator mmO2 Plc and a second trial with a major network operator in the Benelux region, it added.