Minorplanet investors will have to wait a bit longer than expected for the telematics market leader's move into profits due to a number of issues. First and foremost is a change in the way the company is now accounting for its sales, having ceded to the City's pressure for revenues to be recognised when they are received rather than contracted for. House broker Charles Stanley was expecting £1.7m of pre-tax profits for the year to August, but sources close to the company now admit that Minorplanet will be loss-making this year and may be profitable in 2004. Results for the six months to February showed losses of £6.3m, £3.8m of that coming from troubled US business @Track, which was acquired in June 2001. The company admits that this business is 'a cause for concern' and is trying to sell-off the parts of it that are not engaged in selling its vehicle management information (VMI) units. 'Entrepreneurial' chief executive Jeffrey Morris has stepped down to be replaced by finance director John Kelly. Also, the company is in the process of selling its European subsidiaries to management teams (though this is having a negative effect on sales in the short-term). There are a lot of loose ends here, and concerns persist that not everything has come out of the woodwork. Stanley remains a buyer of the stock. We downgrade our stance to Hold.