Half Year Results

RNS Number : 9755I
Trakm8 Holdings PLC
08 December 2022
 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

8 December 2022

TRAKM8 HOLDINGS PLC

("Trakm8", "Company" or the "Group")

Half Year Results

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, announces its unaudited results for the six months ended 30 September 2022:

Financial Highlights

 


6 months to

6 months to

Year to 31


30 Sept 2022

30 Sept 2021

March 2022


Unaudited

Unaudited

Audited


£000

£000

£000

Revenue

9,012

9,021

18,111

of which, recurring revenue1

5,076

4,806

9,806

Profit/(Loss) before tax

(2,413)

47

(122)

Profit/(Loss) after tax

(1,775)

273

187

Adjusted Profit/(Loss) before tax2

(1,077)

444

3

Cash generated from operating activities

1,435

868

3,810

Net Debt3

6,243

6,157

5,395

Basic earnings (loss) per share

(3.55p)

0.55p

0.37p

Adjusted basic earnings (loss) per share

(1.38p)

1.22p

0.41p

1 Recurring revenues are generated from ongoing service and maintenance fees

2 Before exceptional costs and share based payments

3. Total borrowings less cash excluding IFRS 16 adjustment for leased property and motor vehicles

 

Operational Overview

· H1 2022 results:

Revenues maintained despite challenging macroeconomic conditions

Profit impacted by:

§ Lower software sales compared to prior period

§ Higher material costs

§ Exceptional costs from our strategic refocus and cost reduction programme

Improved cash generation from operations despite losses

 

· Continuation of new contract wins:

New telematics contract awards with Insurance customers

Approximately 299,000 connections (September 2021: 255,000 connections), an increase of 44,000 connections (17%) in the last 12 months

 

· H2 and FY2024 outlook:

Significant reduction in overhead costs in line with the Company's trading and strategy update announced on 14 September 2022

Benefit of higher connected base increasing recurring service fee income

Several new Insurance customers launching during H2 but mainly impacting revenues in FY2024 and beyond

Large software contract renewal before the financial year end

 

Outlook

The Board is confident that the improved trading as a result of reduced costs, increased service fees and software contract license sales will ensure the Group meets current market expectations for revenues and adjusted profit.

 

- Ends -

 

For further information:

Trakm8 Holdings plc

 

John Watkins, Executive Chairman

Tel: +44 (0) 1675 434 200

Jon Edwards, Chief Financial Officer

www.trakm8.com

 

 


Allenby Capital Limited  (Nominated Adviser & Broker)

Tel: +44 (0)20 3328 5656

David Hart/ Vivek Bhardwaj, Corporate Finance
Tony Quirke, Sales and Corporate Broking
 

www.allenbycapital.com



 





 

About Trakm8

 

Trakm8 is a UK based technology leader in fleet management, insurance telematics, connected car, and optimisation. Through IP owned technology, the Group uses AI data analytics collected from its installed base of telematics units to fine tune the algorithms that are used to produce its' solutions; these monitor driver behaviour, identify crash events and monitor vehicle health to provide actionable insights to continuously improve the security and operational efficiency of both company fleets and private drivers.

 

The Group's product portfolio includes the latest data analytics and reporting portal (Trakm8 Insight), integrated telematics/cameras/optimisation, self-installed telematics units and one of the widest ranges of installed telematics devices. Trakm8 has over 299,000 connections.

 

Headquartered in Coleshill near Birmingham alongside its manufacturing facility, the Group supplies to the Fleet, Optimisation, Insurance and Automotive sectors to many well-known customers in the UK and internationally including the AA, Saint Gobain, EON, Iceland Foods, Parts Alliance, Direct Line Group, ByMiles and Ingenie.

 

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005. Trakm8 is also recognised with the LSE Green Economy Mark.

 

www.trakm8.com / @Trakm8

 



 

Executive Chairman's Statement

I report Trakm8's results for the six months ended 30 September 2022.

Revenues

The first half of the financial year was in line with recent Company guidance. Revenues for the six months ended 30 September 2022 were similar to the corresponding period in the previous year at £9.01m.

There was a 26% increase in Insurance and Automotive revenues to £4.18m and a reduction of 15% in Fleet and Optimisation revenues to £4.83m

During the period, unit sales increased by 61% to 103,000, with Insurance unit sales increasing by 118% to 90,000 and Fleet unit sales decreasing by 9% to 8,000.

In addition, during the period, connections increased by 13% to 299,000 (31.3.2022: 264,000). Insurance & Automotive connections increased 16% to 225,000 (31.3.22: 193,000). With low attrition experienced, Fleet connections increased by 4% to 74,000 (31.3.22: 71,000).

Recurring revenues in the period increased over the previous year by 5% to £5.08m and represent 56% of Group revenues. In addition, the Group generated £0.17m of software revenues (H1 2020: £0.98m), which represented 2% of Group revenues. In line with the Company's announcement on 14 September 2022, the timing of contract renewals has resulted in the bulk of this year's software sales taking place in H2.

Costs

The Group has encountered a number of challenges as a result of the availability of production components during the period. Notwithstanding this, with our integrated engineering and manufacturing teams we have maintained supplies to customers without significant interruptions. The Board expects that supply chain constraints will significantly ease going forward. However, in order to achieve customer deliveries on time, considerable exceptional hardware costs of circa £0.21m were incurred by the Group during the period.

The Group's gross profit margin has reduced to 58% (2021: 65%). This is due to the higher hardware revenues as a percentage of sales and the reduction in software sales during the period.

Total overhead costs, excluding exceptional costs, increased by £0.84m to £6.10m (H1 2021: £5.26m).  This is the result of reduced furlough support of £0.39m, a £0.28m increase in real estate and IT costs and a £0.07m increase in non-payroll sales & marketing spend. Underlying payroll costs further reduced overall by £0.01m despite inflationary pressures.

Exceptional costs increased during the period to £1.32m. This reflects £0.90m of cost associated with the strategic refocus, £0.21m in additional costs to mitigate the impact of post Covid-19 electronic component supply chain challenges and £0.21m of other costs.

Towards the end of the period, Trakm8 implemented a very substantial reduction in headcount and overhead costs, which is expected to result in a minimum of £2.4m annualised reduction in operating costs. This is associated with the concentration on our more successful markets and products. This action is largely now complete from which the trading performance should benefit going forward.

Results

The Group generated an adjusted loss of £1.08m (2021: profit £0.44m), loss before tax of £2.41m (2021: profit £0.05m) and loss after tax of £1.77m (2021: £0.27m).

 

 

Financial position

Cash generation from operating activities was £1.44m (H1 2021: £0.87m).  As at 30 September 2022, the Group had net bank debt, excluding the Convertible Loan Note and the impact of the IFRS16 lease liability, of £4.67m (£7.65m including the Convertible Loan Note and IFRS 16 lease liability) which is £0.73m less than as at 31 March 2022. As at 30 September 2022, the Group had £1.17m of cash on hand and a further £0.50m of available funds under an overdraft facility. In September 2022, the Group completed a funding round by the issue of £1.58m of Convertible Loan Notes.

The overall cash inflow for the period was £0.29m (H1 2021: outflow of £1.48m). 

 

Post period end, the Group completed the HMRC repayment schedule ahead of time, thus eliminating the outstanding liability of £0.9m as at 31 March 2022.

Strategy and Outlook

The Group has been following the strategy outlined in the Group's 2022 Annual Report and as subsequently modified by the Group's trading update on 14 September 2022. Our focus is to provide ever more meaningful insights to our customers using the data generated by our installed devices and other connections in order to ensure that they can run their operations more efficiently and safely. We have concentrated our focus on our most successful business revenue streams.

Our primary strategy going forward is the growth of our business through more connections, increased device sales and higher service fees. Due to the high level of new contract wins across the business and reduced rates of attrition in Fleet, the number of connections has increased overall by 17.2% in the past 12 months and by 13.2% in past six months. The number of devices sold by the Group has increased by 61% to 103,000 (H1 2021: 64,000). Our focus going forward will be on the Insurance and Automotive space, and to build our connected vehicle base along with Enterprise Fleet customers.

Trakm8 has focused on delivering market leading technology and ensuring that the solutions are generating the best possible ROIs for our customers. To this point, we have maintained the levels of expenditure on R&D. We continue to own the majority of IP in our value chain. We have been building out greater functionality of existing solutions rather than a wider range and have moved out of the initial development phase of the Insight platform into one of maturity. We have updated all our devices to utilise the latest technology, accelerated by the supply constraints of previous components. As a result, going forward we will meet our objectives of remaining a leading-edge technology Company but at a substantially lower investment cost. 

We are also striving to improve the efficiencies of our business in every possible way. We have sought to minimise the impact of salary inflation and higher marketing costs and, towards the end of the period end, undertaken a very significant reduction in overhead costs as we focus our activities on our narrower objectives.  This should benefit the Group in the second half of this year and on into future years.

The Group is pleased that it will have several new Insurance customers launching during the second half of this financial year, albeit the financial impact of these will mainly occur in FY2024 and beyond.  In addition, the Board is hopeful of a successful outcome to a large software contract renewal scheduled before the financial year end.

Unaudited management accounts for October and November show a substantial improvement in profitability as a result of the actions taken by the Group. We expect this to continue through the remainder of this and next year.

JOHN WATKINS

Executive Chairman

 

 

Unaudited Consolidated Statement of Comprehensive Income for the six months to 30 September 2022

 













Six months to 30 September

Six months to 30 September

Year to
31 March






2022

2021

2022






Unaudited

Unaudited

Audited






£'000

£'000

£'000





Note












Revenue

 



3

  9,012

  9,021

  18,111

Cost of sales





(3,786)

(3,177)

(7,004)

Gross profit

 




  5,226

  5,844

  11,107









Other income




4

  16

  13

  13









Administrative expenses excluding exceptional costs



(6,097)

(5,262)

(10,193)

Exceptional administrative costs




7

(1,319)

(306)

(568)

Total administrative costs





(7,416)

(5,568)

(10,761)









Operating profit/(loss)

 




(2,174)

  289

  359









Finance income





  29

  32

  67

Finance costs




8

(268)

(274)

(548)









Profit/(Loss) before taxation

 




(2,413)

  47

(122)









Income tax





  636

  226

  309









Profit/(Loss) for the period

 




(1,777)

  273

  187









Other Comprehensive Income

 







Items that may be subsequently reclassified to profit or loss:






Exchange differences on translation of foreign operations



  2

  4

  10

Total other comprehensive income

 



  2

  4

  10






 



Total Comprehensive Profit/(Loss) for the period attributable to owners of the parent

 

5

(1,775)

  277

  197









Profit/(Loss) before taxation

 



6

(2,413)

  47

(122)

Exceptional administrative costs





  1,319

  306

  568

IFRS2 Share based payments charge




  17

  91

(443)

Adjusted profit/(loss) before tax

 




(1,077)

  444

  3









Earnings per ordinary share (pence) attributable to owners of the Parent

 











Basic




9

(3.55)

  0.55

  0.37

Diluted




9

(3.55)

  0.55

  0.37

















The results relate to continuing operations.







 

 

 

Unaudited Consolidated Statement of Changes in Equity for the six months to 30 September 2022

 









Share capital

Share premium

Merger  reserve

Translation reserve

Treasury  reserve

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000









Balance as at 1 April 2021

  500

  14,691

  1,138

  193

(4)

  3,604

  20,122

 








Comprehensive income

 







Loss for the period

  -

  -

  -

  - 

  - 

  273

  273

Other comprehensive income

 







Exchange differences on translation of overseas operations

  -

  -

  -

  4

  - 

 -

  4

Total comprehensive income

  -

  -

  -

  4

  - 

  273

  277

 








Transactions with owners

 





 

 

IFRS 2 Share-based payments

  -

  -

  -

  - 

  - 

  91

  91

Transactions with owners

  - 

  - 

  -

  - 

  - 

  91

  91

Balance as at 30 Sept 2021

  500

  14,691

  1,138

  197

(4)

  3,968

  20,490

 








Comprehensive income

 







Loss for the period

  -

  -

  -

  - 

  - 

(86)

(86)

Other comprehensive income

 







Exchange differences on translation of overseas operations

  -

  -

  -

  6

  - 

 -

  6

Total comprehensive income

  -

  -

  -

  6

  - 

(86)

(80)

 








Transactions with owners

 





 

 

IFRS2 Share-based payments

  -

  -

  -

  - 

  - 

(534)

(534)

Transactions with owners

  - 

  - 

  - 

  - 

  - 

(534)

(534)

Balance as at 31 March 2022

  500

  14,691

  1,138

  203

(4)

  3,348

  19,876

 








Comprehensive income

 







Profit for the period

  -

  -

  -

  - 

  - 

(1,777)

(1,777)

Other comprehensive income

 







Exchange differences on translation of overseas operations

  -

  -

  -

  2

  - 

 -

  2

Total comprehensive income

  -

  -

  -

  2

  - 

(1,777)

(1,775)

 








Transactions with owners

 







IFRS2 Share based payments

  -

  -

  -

  - 

  - 

  17

  17

Convertible loan

  -

  11

  -

  - 

  - 

  - 

  11

Transactions with owners

  - 

  11

  - 

  - 

  - 

  17

  28

Balance as at 30 Sept 2022

  500

  14,702

  1,138

  205

(4)

  1,588

  18,129

 

 

 

 

 

 

Unaudited Consolidated Statement of Financial Position as at 30 September 2022






As at 30 September

As at 30 September

As at 31 March






2022

2021

2022





Note

Unaudited

Unaudited

 Audited






£'000

£'000

£'000









Non-current assets

 







Intangible assets




10

  23,277

  22,568

  23,012

Plant, property and equipment





  1,034

  911

  803

Right of use assets




11

  1,751

  2,187

  2,032

Deferred income tax asset





  - 

  - 

  -

Amounts receivable under finance leases




  39

  39

  27






  26,101

  25,705

  25,874

Current assets

 







Inventories





  1,352

  1,368

  1,322

Trade and other receivables





  7,158

  7,301

  7,944

Corporation tax receivable





  1,150

  1

  709

Cash and cash equivalents





  1,174

  888

  1,004






  10,834

  9,558

  10,979

Current liabilities

 







Trade and other payables





(8,806)

(5,339)

(7,521)

Borrowings




12

(897)

(1,140)

(1,115)

Right of use liability




12

(487)

(708)

(612)

Provisions





  - 

  - 

(27)






(10,190)

(7,187)

(9,275)









Current assets less current liabilities

 



  644

  2,371

  1,704

Total assets less current liabilities





  26,745

  28,076

  27,578









Non-current liabilities

 







Trade and other payables





(474)

(474)

(626)

Borrowings




12

(6,176)

(5,386)

(4,855)

Right of use liability




12

(1,258)

(1,459)

(1,367)

Provisions





(160)

(151)

(112)

Deferred income tax liability





(548)

(116)

(742)






(8,616)

(7,586)

(7,702)









Net assets

 




  18,129

  20,490

  19,876









Equity

 







Share capital




13

  500

  500

  500

Share premium





  14,702

  14,691

  14,691

Merger reserve





  1,138

  1,138

  1,138

Translation reserve





  205

  197

  203

Treasury reserve





(4)

(4)

(4)

Retained earnings





  1,588

  3,968

  3,348

Total equity attributable to owners of the parent

 


  18,129

  20,490

  19,876

 

 

 

 

 

Unaudited Consolidated Cash Flow Statement for the six months to 30 September 2022

 













Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022





Note

Unaudited

Unaudited

Audited






£'000

£'000

£'000









Net cash generated from operating activities

 

14

  1,435

  868

  3,810









Cash flows from investing activities

 






Purchases of property, plant and equipment




(332)

(230)

(420)

Proceeds from sale of property, plant and equipment



  - 

  - 

  125

Purchases of software





(8)

(2)

(48)

Capitalised Development costs





(1,447)

(1,396)

(2,911)

Net cash used in investing activities

 



(1,787)

(1,628)

(3,254)









Cash flows from financing activities

 






New convertible loan note





  1,580

  -

  - 

Loan arrangement fees





(13)

  -

(5)

Repayment of bank loans





(512)

(168)

(743)

Repayment of obligations under lease agreements



(324)

(280)

(674)

Interest paid





(209)

(274)

(500)

Net cash generated from financing activities

 



  522

(722)

(1,922)









Net (decrease)/increase in cash and cash equivalents

 


  170

(1,482)

(1,366)









Cash and cash equivalents at beginning of period



  1,004

  2,370

  2,370









Cash and cash equivalents at end of period

 



  1,174

  888

  1,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements

 







1.  Basis of preparation

 















The Group's interim results for the 6 months to 30 September 2022 (prior year 30 September 2021) were approved by the Board of Directors on 7 December 2022.








As permitted this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore is not fully in compliance with IFRS. 








Trakm8 Holdings PLC ("Trakm8") is a public limited company incorporated in the United Kingdom under the Companies Act 2006.  Trakm8 is domiciled in the United Kingdom and its ordinary shares are traded on AIM, the market operated by the London Stock Exchange plc.








The accounting policies adopted in the preparation of the interim financial statement are the same as those set out in the Group's annual financial statements for the year ended 31 March 2022. The financial statements have been prepared on the historical cost basis except for certain liabilities and share based payment liabilities which are measured at fair value.








The interim financial statements have not been audited or reviewed by Group's auditors pursuant to the Auditing Practice Board guidance on 'Review of Interim Financial Information' and do not include all the information required for full annual financial statements.








The financial information contained in this report is condensed and does not constitute statutory accounts of the Group within the meaning of Section 434(3) of the Companies Act 2006. Statutory accounts for the year ended 31 March 2022 have been delivered to the Registrar of Companies. The audit report of those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.








Going concern














The consolidated interim financial statements are prepared on a going concern basis. The directors report that, having reviewed current performance and projections of its working capital and long term funding requirements, including assessments against the covenants agreed with our bank and downward sensitivity analysis, they are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.








2.  Risks and uncertainties

 














The Board has considered the principal risks and uncertainties for the remaining half of the financial year and determined that the risk presented in the 31 March 2022 Annual Report, described as follows, also remain relevant to the rest of the financial year: Significant operational system failure; Cyber-attack and data security; Operating in a fast-moving technology industry where we will always be at risk from new products being launched; Adverse mobile network changes; Attracting and maintaining high-quality employees; Access to long term and working capital; Electronics supply chain constraint and Business disruption from Covid-19. These are detailed on pages 17 to 19 of the 2022 Annual Report, a copy of which is available on the Group's website at www.trakm8.com.








 

 







 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements

 








3.  Segmental Analysis

 















The chief operating decision maker ("CODM") is identified as the Board. It continues to define all the Group's trading under the single Integrated Telematics Technology segment and therefore review the results of the group as a whole.  Consequently, all the Group's revenue, expenses, assets and liabilities are in respect of one Integrated Telematics Technology segment. 









The Board as the CODM review the revenue streams of Integrated Fleet, Optimisation, Insurance and Automotive Solutions (Solutions) as part of their internal reporting. Solutions represents the sale of the Group's full vehicle telematics and optimisation services, engineering services, professional services and mapping solutions to customers.









A breakdown of revenue within these streams are as follows:


Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022






Unaudited

Unaudited

Audited






£'000

£'000

£'000

Solutions:





9,012

9,021

18,111

Fleet and optimisation





4,828

5,712

11,217

Insurance and automotive





4,184

3,309

6,894









4.  Other income

 












Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Grant income





16

13

13






16

13

13









5.  Profit/(Loss) per ordinary share attributable to the owners of the parent

 















Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Profit/(Loss) attributable to the owners of the parent



(1,775)

  277

  197









6.  Adjusted profit/(loss) before tax

 














Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as follows:











Profit/(Loss) Before Tax





(2,413)

  47

(122)

Exceptional administrative costs





  1,319

  306

  568

Share based payments





  17

  91

(443)

Adjusted profit/(loss) before tax





(1,077)

  444

  3

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements

 








7. Exceptional costs

 




















Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022

 





Unaudited

Unaudited

Audited






£'000

£'000

£'000









Integration and restructuring costs





902

45

107

Covid-19 costs





417

446

646

Furlough grant income





-

(185)

(185)






1,319

306

568









The integration and restructuring costs in the current year relate to the Group's recent decision to implement a change in strategy to focus on the Insurance, Automotive and Optimisation sectors. These costs include the reduction of headcount in engineering, sales, marketing and associated support functions and will aid profitability in the year ending 31 March 2024.

The Group incurred exceptional costs in the current and prior financial year relating to the Covid-19 pandemic.
These costs include the increased cost of temporarily buying raw materials from auxiliary markets to ensure
continuity of supply of key components which were in constraint due to supply chain issues caused by the
pandemic. In the prior year, these costs include the costs of employees during periods of furlough.

Furlough grant income relates to other income received from the Coronavirus Job Retention Scheme for employees furloughed because of Covid-19.

Detailed explanation of prior year exceptional costs are detailed on page 63 of the 2022 Annual Report, a copy of which is available on the Group's website at www.trakm8.com.

8.  Finance costs

 












Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022

 





Unaudited

Unaudited

Audited






£'000

£'000

£'000






 

 


Interest on bank loans





200

198

388

Amortisation of debts issue costs





30

24

48

Interest on Hire Purchase and similar agreements



38

52

112






268

274

548

 

 

 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements

 








9.  Earnings Per Ordinary Share

 














The earnings per Ordinary share have been calculated in accordance with IAS 33 using the profit for the period and the weighted average number of Ordinary shares in issue during the period as follow:














Six months to

Six months to

Year to






30 September

30 September

31 March






2022

2021

2022

 





Unaudited

Unaudited

Audited









Profit/(Loss) the year after taxation





(1,777)

  273

  187

Exceptional administrative costs





  1,319

  306

  568

Share based payments





  17

  91

(443)

Tax effect of adjustments





(251)

(58)

(108)

Adjusted profit/(loss) after taxation

 



(692)

  612

  204














No.

No.

No.






'000

'000

'000

Number of Ordinary shares of 1p each




50,004

50,004

50,004









Basic weighted average number of Ordinary shares of 1p each


50,004

50,004

50,004

Diluted weighted average number of Ordinary shares of 1p each*


50,079

50,004

50,057









Basic earnings/(loss) per share





(3.55p)

0.55p

0.37p

Diluted earnings/(loss) per share





(3.55p)

0.55p

0.37p









Adjust for effects of:








Exceptional costs





2.14p

0.50p

0.92p

Share based payments





0.03p

0.18p

(0.89p)









Adjusted basic earnings/(loss) per share




(1.38p)

1.22p

0.41p

Adjusted diluted earnings/(loss) per share


(1.38p)

1.22p

0.41p









* In the year ended March 2022, the Group awarded Tranch AI with an exercise price of 16p. This grant is dilutive as the exercise price is less than the average share price as at the period end.

 

 


 

Notes To The Unaudited Consolidated Financial Statements

 








10.  Intangible Assets

 









Goodwill

Intellectual property

Customer Relationships

Development costs

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Cost

 







As at 31 March 21


10,417

1,920

100

19,242

1,759

33,438

Additions - Internal development


-

-

-

1,214

-

1,214

Additions - External purchases


-

-

-

182

2

184

As at 30 September 2021

 

10,417

1,920

100

20,638

1,761

34,836

Additions - Internal development


-

-

-

1,307

46

1,353

Additions - External purchases


-

-

-

208

-

208

As at 31 March 2022

 

10,417

1,920

100

22,153

1,807

36,397

Additions - Internal development


-

-

-

1,282

-

1,282

Additions - External purchases


-

-

-

165

8

173

As at 30 September 2022

 

10,417

1,920

100

23,600

1,815

37,852

Amortisation

 







As at 31 March 21


-

1,920

100

7,974

1,257

11,251

Charge for period


-

-

-

924

93

1,017

As at 30 September 2021

 

-

1,920

100

8,898

1,350

12,268

Charge for period


-

-

-

1,019

98

1,117

As at 31 March 2022

 

-

1,920

100

9,917

1,448

13,385

Charge for period


-

-

-

1,085

105

1,190

As at 30 September 2022

 

-

1,920

100

11,002

1,553

14,575

 








Net book amount

 







As at 30 September 2022

 

10,417

-

-

12,598

262

23,277

 








As at 31 March 2022


10,417

-

-

12,236

359

23,012









As at 30 September 2021


10,417

-

-

11,740

411

22,568









As at 31 March 21


10,417

-

-

11,268

502

22,187









 

 


 

Notes To The Unaudited Consolidated Financial Statements

 








11. Right of use assets

 









Leased buildings

Furniture, fixtures and equipment

Computer equipment

Motor vehicles

Total

 

COST

 

£'000

£'000

£'000

£'000

£'000

 

As at 31 March 21


2,098

551

350

615

3,614

 

Additions


-

-

-

-

-

 

Disposals


-

-

-

(25)

(25)

 

As at 30 September 2021

 

2,098

551

350

590

3,589

 

Additions


-

-

56

94

150

 

Disposals


-

-

-

(72)

(72)

 

As at 31 March 2022

 

2,098

551

406

612

3,667

 

Additions


-

-

-

-

-

 

Disposals


-

-

-

-

-

 

As at 30 September 2022

 

2,098

551

406

612

3,667

 

 







 

AMORTISATION

 






 

As at 31 March 21


529

124

120

329

1,102

 

Charge for period


133

35

57

100

325

 

Disposals


-

-

-

(25)

(25)

 

As at 30 September 2021

 

662

159

177

404

1,402

 

Charge for period


132

35

57

81

305

 

Disposals


-

-

-

(72)

(72)

 

As at 31 March 2022

 

794

194

234

413

1,635

 

Charge for period


133

35

36

77

281

 

Disposals


-

-

-

-

-

 

As at 30 September 2022

 

927

229

270

490

1,916

 

 







 

Net book amount

 






 








 

As at 30 September 2022

 

1,171

322

136

122

1,751

 

 







 

As at 31 March 2022

 

1,304

357

172

199

2,032

 








 

As at 30 September 2021

 

1,436

392

173

186

2,187

 








 

As at 31 March 21

 

1,569

427

230

286

2,512

 










 

 


 

 

Notes To The Unaudited Consolidated Financial Statements

 








12.  Borrowings

 









As at 30 September 2022

As at 30 September
2021

As at 31 March
2022



Current

Non-Current

Current

Non-Current

Current

Non-Current



£'000

£'000

£'000

£'000

£'000

£'000

Borrowings


897

4,602

1,140

5,386

1,115

4,855

Convertible unsecured loan note


-

1,574

-

-

-

-

Right of use liability


487

1,258

708

1,459

612

1,367

Totals


1,384

7,434

1,848

6,845

1,727

6,222









All borrowings are held in sterling and the Directors consider their carrying amount approximates to their fair values.









Borrowings comprise of the following loans: 







A £5.3m term loan with HSBC.  The loan is secured by a fixed and floating charge on all the assets of the Group. It is repayable by 22 monthly instalments from 30 September 2021 of £86,000 and a final repayment of the outstanding balance on 31 October 2023 and bears interest at a floating rate of 5.1% over base rate. As at 30 September 2022 the Group owed £4.5m (March-22: £4.9m).









A £0.5m overdraft facility with HSBC. The overdraft facility bears an interest rate of 5.3% over LIBOR on the drawn amount. As at 30 September 2022 the Group had not used this overdraft facility.









A £1.5m growth capital loan with MEIF WM Debt LP. The loan bears a fixed interest rate of 8% per annum and is repayable in 15 quarterly instalments commencing 30 September 2021. The loan is secured by a secondary fixed and floating charge on all the assets of the Group. As at 30 September 2022 the Group owed £975K (March-22: £1.2m).









A £1.6m convertible unsecured loan note. The loan bears a fixed interest rate of 12% per annum, with a two-year term from its issue date 14 September 2022. The interest is payable quarterly from issue date until repayment on 13 September 2024. The Loan Note is convertible at a conversion price of 17.10p, a ten percent discount to the closing mid-market price of a Trakm8 ordinary share on 13 September 2022, the last practicable date prior to its completion.









The Group's obligations under right of use assets are secured by the lessors' title to the leased assets.










Obligations under right of use assets by category at 30 September 2022 were as follows:





Freehold property

Furniture, fixtures and equipment

Computer equipment

 Motor vehicles

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Current


203

70

113

74

27

487

Non-current


1073

15

111

52

7

1258

Total


1,276

85

224

126

34

1,745









The maturity of obligations under right of use assets as at 30 September 2022 were as follows:





Freehold property

Furniture, fixtures and equipment

Computer equipment

Motor vehicles

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Within 1 year


203

70

113

74

  27

  487

1 to 2 years


238

15

70

27

  7

  357

2 to 5 years


626

-

41

25

                    -

  692

More than 5 years


209

-

-

-

-

  209

Total


1,276

85

224

126

34

1,745

 

Notes To The Unaudited Consolidated Financial Statements

 







13.  Share Capital

 









As at 30 September 2022

As at 30 September
 2021

As at 31 March
2022


No's

 

No's


No's



000's

£'000

000's

£'000

000's

£'000

Authorised:







Ordinary shares of 1p each

200,000

200,000

200,000

200,000

200,000

200,000

Allotted, issued and fully paid:







Ordinary shares of 1p each

50,004

500

50,004

500

50,004

500








Movement in share capital:






£'000








As at 1 April 2021






500

As at 30 September 2021






500

As at 31 March 2022






500

As at 30 September 2022






500

 







The Company currently holds 29,000 Ordinary shares in treasury representing 0.06% (March-22: 0.06%) of the Company's issued share capital. The number of 1 penny Ordinary shares that the Company has in issue less the total number of Treasury shares is 49,975,002.








14. Cash Generated from Operations

 

















Six months to

Six months to

Year to





30 September

30 September

31 March





2022

2021

2022





Unaudited

Unaudited

Audited





£'000

£'000

£'000








Net profit/(loss) before taxation




(2,413)

47

(122)

Depreciation




  384

535

806

(Profit)/Loss on disposal of fixed assets




  88

-

263

Net bank and other interest




  239

266

481

Exceptional costs




  1,319

306

568

Amortisation of intangible assets




  1,190

1,017

2,134

Exchange movements




  2

4

10

Share based payments




  17

91

(443)

Operating cash flows before movement in working capital

 

  826

2,266

3,697

Movement in inventories




(30)

41

87

Movement in trade and other receivables




  774

(611)

(1,242)

Movement in trade and other payables




  1,133

(1,150)

1,184

Movement in provisions




  21

(66)

(78)

Cash generated from operations before exceptional costs

 

  2,724

480

3,648

Cash outflow from exceptional costs




(1,319)

(306)

(568)

Cash generated from operations




  1,405

  174

  3,080

Interest received




  29

32

67

Income taxes received




  1

662

663

Net cash-inflow from operating activities

 



  1,435

868

3,810








Income taxes received are amounts in relation to Research and Development activities. Post period end £684,000 was received and used to settle the existing Time to Pay arrangement with HMRC.








 

 

Notes To The Unaudited Consolidated Financial Statements

 








15. Further Copies

 















This statement, full text of the London Stock Exchange announcement and the results presentation can be found on the Group's website www.trakm8.com and from the registered office of Trakm8 Holdings PLC.  The address of the registered office is: Roman Way, Roman Park, Coleshill, North Warwickshire, B46 1HG.

 

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