Touchstar PLC on Monday said it expects annual profit to double and its revenue to be up over 10% in line with market expectations, while expecting earnings before interest, tax, depreciation and amortisation to be ahead of expectations.

The Glasgow, Scotland-based supplier of mobile data computing solutions and managed services to a variety of industrial sectors said it expects pretax profit for 2022 to be 100% higher than 2021, while revenue growth of over 10% and recurring revenue to account for 40% of total revenue from 38% a year before.

These forecasts are in line with market expectation, it said, while it expects Ebitda growth of over 25%, which is ahead of expectations.

It anticipates a year-end cash balance of £3.5 million, up 40% from £2.5 million on December 31, while its year-end order book is expected to multiply to £1.7 million from £600,000.

Touchstar said its short-term focus was on delivery of service to customers, meeting expectations and creating a ‘vibrant’ environment for employee development.

In line with increased levels and more predictable cash generation, Touchstar said it will now look to accelerate investment in long-term growth.

Methods include increasing sales through increased product and solutions innovation, expanding into new territories through developing local relationships and partnerships, implementing the required skills and structure to tender for larger, more complex contracts and to enter into new vertical sectors by adaption of existing products and solutions.

‘Touchstar has made substantial progress in 2022, I am extremely grateful to the team that have made these excellent results possible,’ said Chair Ian Martin.

‘Our commitment is to capitalise upon this hard work and success to become a better more valuable business.’

Touchstar expects to report its 2022 final results in late April.

Shares in Touchstar were up 13% to 90.00 pence each in London on Monday after midday.

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