TomTom

TomTom. The overstretched nature of the group's balance sheet and fears that banking covenants would be breached had reduced the valuation to attractive levels. A  five-for-eight rights issue (fully underwritten by major shareholders and leading banks) has solved the financial problems. The group is the leading supplier of personal navigational devices worldwide, ahead of Garmin in the US, and with its recent entry into the new car market (it has started supplying inbuilt devices for the Renault Clio and Mégane, with other manufacturers also expected to sign up shortly), should make for reasonable growth in sales and earnings, despite otherwise sluggish consumer spending.