Just under 20,000 vehicle tracking systems were supplied in 2011 – an increase of 125% over 2010 and brought the total number of systems installed by Quartix to more than 50,000. As a result, pre-tax profit increased by 10% to £1.8 million.

Managing director, Andy Walters said: 'Telematics is entering its most exciting phase yet as the technology becomes more widely deployed in the commercial market and as it gains rapid acceptance in the private insurance sector.

'Only those companies having complete design ownership and control, together with the cash-flow to invest, will prosper. We are uniquely placed to take advantage of these opportunities as we have both the technical and financial strength to take a leading position,' Walters added.

Elswwhere, the company made substantial investments in research and development for the insurance sector, and expects to launch new supply agreements with at least five leading insurers covering both the private and fleet sectors.

He concluded: 'The requirements of the insurance and fleet sectors are converging as the need to monitor driving behaviour is driven by the cost of fuel and insurance. These costs have sky-rocketed in the past 18 months and our technology can save customers money on both counts.'

Quartix also announced it had signed up 180 fleets during its first year of operation in France.