Redflex speeds earnings
- Philip Hopkins
- August 27, 2008
TRAFFIC camera maker Redflex Holdings is tipping another record year in 2008-09 as company growth in the US market continues.
The Melbourne-based company, which reported a 44% rise in net profit to $10.6 million in 2007-08, expects earnings growth to be stronger in the second half of the 2008-09 financial year.
Chief executive Graham Davie said the first half would be hit by higher costs associated with a move in premises and a restructuring of sales and marketing.
Redflex declared a fully franked dividend of 4.5¢ a share, with a record date of October 17 and payable on November 3.
Mr Davie said the market for speed-enforcement measures was enormous and was "less than 10% penetrated".
"As the clear leader in that potential multibillion-dollar market … Redflex is well-positioned and equipped to capitalise on the continued expansion of the market," he said.
Redflex shares closed 3¢ higher at $2.75.