Companies: TRC   

Despite an extensive reorganisation that involved shutting down three businesses, mobile data network outfit Transcomm moved into the black at the interim stage. In the six months to June, Transcomm turned in pre-tax profits of £170,000, despite turnover dropping from £8.67m to £7.16m. At the same stage last year losses came in at a hefty £3.07m. The reorganisation, which led to the closure of the Mobile Products and the Mobile Solutions divisions, appears to have succeeded in its aim of reducing costs. According to chairman Rod Matthews, Transcomm's annualised cost base has been trimmed from £18.6m 18 months ago to £10.8m. Once the network has been installed, these costs are largely fixed, so any benefits from turnover growth should be evident at the bottom line. Not surprisingly, the emphasis is now on securing increased sales. Matthews says that over 600 mobile units have been installed for 'white goods' delivery business General Domestic Appliances, while parcel delivery outfit City Link has added 1,500 units. Transcomm's equipment allows companies to keep track of large numbers of employees that are on the move - for example, delivery staff or emergency workers. If the anticipated increase in sales materialises, the firm could be well positioned.