Interim Results
Summary by AI BETAClose X
27 July 2026
Quartix Technologies plc
("Quartix", "the Group" or "the Company")
Interim Results
Quartix Technologies plc (AIM:QTX), a leading supplier of subscription-based vehicle tracking systems, analytical software and services, is pleased to announce its unaudited results for the half year ended 30 June 2026.
Restatement of comparatives:
All comparative monetary amounts for 2025 have been restated in line with a change in accounting policy for the recognition of Quartix tracking systems and dashcams as IAS: 16 Property, Plant and Equipment. See summary of significant accounting policies and note 9 Explanation of change in accounting policy.
Financial highlights
· Revenue increased by 12% to £19.4m (2025: £17.3m)
· EBITDA1 increased by 16% to £7.2m (2025: £6.2m)
· Adjusted EBIT2 increased by 21% to £4.9m (2025: £4.0m)
· Profit before tax increased by 21% to £4.8m (2025: £4.0m)
· Diluted earnings per share of 5.51p (2025: 6.50p)
· Free cash flow3 increased by 18% to £3.0m (2025: £2.5m)
· Interim dividend of 2.70p per share proposed (2025: 2.50p)
1 Earnings before interest, tax, depreciation and amortisation (see note 5)
2 Earnings before interest, tax and share based payment expense (see note 5)
3 Cash flow from operations after tax and investing activities
Principal activities and performance measures
The Company's main strategic objective is to grow its subscription base profitably and develop the associated annualised recurring revenue.
Annualised recurring revenue has increased by 11% on a twelve-month trailing basis ("TTM") (see definition in KPI table below). Annualised recurring revenue is a forward-looking key performance measure, and it is pleasing that it grew by £3.8m on a constant exchange rate, to £38.9m on 30 June 2026, compared to 30 June 2025.
The Key Performance Indicators used by the Board to assess the performance of the business are listed below and discussed in the Chairman's Statement.
Key Performance Indicators ("KPIs")
|
Period ended 30 June |
2026 |
2025 |
% change |
|
Annualised recurring revenue1 (£'000) |
38,905 |
35,089 |
11% |
|
Fleet subscription base2 (units) |
342,679 |
318,947 |
7% |
|
Fleet customer base3 |
33,550 |
31,588 |
6% |
|
ARR per vehicle (£) |
114 |
110 |
3% |
|
ARR per employee4 (£'000) |
220 |
198 |
11% |
|
Net Revenue Retention5 ("NRR") (%) |
96.9 |
97.3 |
(0%) |
|
Fleet invoiced recurring revenue6 (£'000) |
19,062 |
16,848 |
13% |
1 Annualised data services revenue ("ARR") for the subscription base at 30 June, before deferred revenue, including revenue for units waiting to be installed for which subscription payments have already started or are committed, with comparative June 2025 measured at a constant exchange rate.
2 The number of vehicle tracking units subscribed to the Group's fleet tracking services, including units waiting to be installed for which subscription payments have started or are committed
3 The number of customers associated with the fleet subscription base
4 ARR per employee, based on total company employee head count as at the period end
5 NRR is measured on a constant-currency basis and represents the annualized value of recurring revenues for the customer base at the end of the Period, excluding the contribution from new customers won over the preceding 12 months, and expressed as a percentage of the base at 1 July 2025
6 Invoiced subscription charges before provision for deferred revenue
Andrew Walters, Executive Chairman of Quartix, commented:
"The Group has delivered a strong financial performance in the first half, with solid growth in revenue, profit and free cash flow. This reflects the strength of our subscription‑based model, disciplined pricing and increasing upsell momentum across our customer base. The second half has started well, and with targeted investment in our upsell capabilities and customer acquisition we look to the remainder of the year and 2027 with confidence."
For further information, please contact:
Quartix (www.quartix.com/en-gb) 01686 806 663
Andrew Walters, Executive Chairman
Sally Morton, Finance Director & Company Secretary
Cavendish (Nominated Adviser and Broker) 020 7200 0500
Matt Goode / Seamus Fricker / Trisyia Jamaludin (Corporate Finance)
Sunila de Silva (Corporate Broking)
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Interim financial results report
The Group's Interim Financial Statements for the 6 months ended 30 June 2026 are available in the "Investors" section of our website at: www.quartix.com/en-gb/company/investors
About Quartix
Founded in 2001, Quartix is a leading supplier of subscription-based vehicle tracking systems, software and services. The Group provides an integrated tracking and telematics data analysis solution for fleets of commercial vehicles which improves productivity and safety and which lowers costs by capturing, analysing and reporting vehicle and driver data.
Quartix is based in the UK and is listed on the AIM market of the London Stock Exchange (AIM:QTX).
Chairman's Statement
Summary
The Board is pleased to report that Annualised Recurring Revenue ("ARR") increased by £3.8m (+11%) in the 12 months from 1 July 2025 to 30 June 2026. Just over half of this increase (£2.1m) was achieved during the Period.
Revenue grew by 12% to £19.4m, driven by a 7% expansion of our subscription base alongside a weighted average 3% average price rise across the customer base. Gross margin improved to 80.0% (2025: 78.4%), primarily reflecting this top-line expansion. Hardware cost reductions also contributed some of the gross profit improvement following the transition of the new TCSV 17 tracking system into full production in H2 2025. However in accordance with our IAS 16 accounting policy, the costs of these new tracking systems are capitalised and depreciated over a 7-year useful economic life. Consequently, while the cash cost savings from these new systems are realised immediately, the corresponding impact on our reported profit is spread over this seven-year timeframe.
Profit before tax for the Period increased by 21% to £4.8m (2025: £4.0m). This growth was driven by an increase in gross profit of £1.9m (14%). To capitalise on this momentum, we invested a portion of these gains back into the business, increasing Sales and Marketing spend by £1.0m. Of this £1.0m, £0.4m related specifically to investments made into indirect channels and, following close performance appraisal, we determined that the return on investment was not adequate. Consequently, this activity has been scaled back in H2 2026, securing £0.2m in future savings against our initial plans. £0.1m of these savings have been invested in an AI data research project to improve customer acquisition efficiency, with the remaining balance held for future marketing programmes. Administrative costs were tightly controlled, increasing by just £0.1m (2%).
Pricing and revenue retention
Average revenue per unit subscription increased by 3% during the Period, driven by inflationary price adjustments across the customer base together with strong momentum in camera upsells with higher associated average price per unit.
NRR is calculated by dividing the ARR of the remaining customer base at the end of a 12-month period by the ARR value of that base at the start of the 12 months. It excludes the effects of new customer acquisition during the period but includes the effects of upgrades and additions to existing fleets and price changes. NRR was 96.9% at the end of the 12 month period ending 30 June 2026 (2025: 97.3%). The reduction in NRR was primarily attributable to the UK market which had delivered 100% NRR in the 12 months to June 2025 with the benefit of strong camera upsells coupled with lower attrition rates, compared to 99.4% in the 12 months to June 2026 following some increased attrition. Focus on this measure is being monitored across all territories.
Market performance
The key metrics shown below include growth expressed as a percentage since 1 July 2025, with the exception of the figures given for new subscriptions and new customers, for which the growth shown is for the Period compared to the same period in 2025.
|
Country |
ARR Growth in period (£'m) |
ARR (£m) |
TTM % |
New Subscriptions (units) |
Subscription Base (units) |
TTM % |
New Customers |
Customer Base |
TTM % |
|
UK/EI |
0.7 |
20.4 |
7% |
12,248 |
167,891 |
2% |
832 |
12,019 |
1% |
|
France |
0.8 |
10.6 |
14% |
12,015 |
96,770 |
11% |
1,169 |
10,101 |
6% |
|
USA |
0 |
3.4 |
1% |
2,990 |
29,025 |
(3%) |
402 |
3,883 |
(3%) |
|
Italy |
0.3 |
2.2 |
39% |
4,701 |
23,408 |
38% |
620 |
3,560 |
33% |
|
Spain |
0.2 |
1.4 |
31% |
2,831 |
16,638 |
27% |
417 |
2,704 |
15% |
|
Germany |
0.1 |
0.9 |
20% |
1,409 |
8,586 |
14% |
188 |
1,224 |
14% |
|
Other |
- |
- |
(21%) |
32 |
361 |
(24%) |
4 |
59 |
(17%) |
|
Total |
2.1 |
38.9 |
11% |
36,226 |
342,679 |
7% |
3,632 |
33,550 |
6% |
UK
The subscription and customer bases grew by 2% and 1% respectively on a TTM basis.
ARR increased by 7% in the 12 months to 30 June 2026, with an increase in the ARR per vehicle of 5% to £121 per vehicle (2025: £115) with the benefit of inflationary price adjustments across majority of the customer base together with strong momentum in camera upsells. Performance in the first half was impacted by slower conversion in the field sales channel, reflecting the timing of order intake, with momentum improving towards the end of the period.
France
The subscription and customer bases grew by 11% and 6% respectively on a TTM basis.
ARR increased by 14% in the 12 months to 30 June 2026 with an increase in the ARR per vehicle of 2% to £109 per vehicle (2025: £107), broadly in line with the prior year, reflecting continued strong execution in the territory in building the subscription base across all sales channels.
USA
The subscription and customer bases decreased by 3% on a TTM basis.
Despite this, ARR increased by 1% in the 12 months to 30 June 2026 as a result of the increase in the ARR per vehicle of 5% to £116 per vehicle (2025: £110), supported by price indexation across the existing customer base, which offset the impact of higher churn and softer trading during the period
Italy, Spain and Germany
All three territories delivered strong performance across key metrics, with ARR growth in excess of 20% on a TTM basis in each country and particularly pleasing is the increase in the ARR per vehicle of 5% to £109 per vehicle (2025: £104) in Germany with an increase in the average subscription price at the point of sale in new orders but also supported by price indexation across the existing base. Closely followed by Spain and Italy with an increase in the ARR per vehicle of 3% and 1% respectively.
These markets continue to present significant opportunities for expansion, and the Group plans to increase investment in the second half of 2026 and into 2027.
Product development, systems and overheads
4G Upgrade Programmes
Good progress has been made in carrying out the 4G upgrade programme in France. 8,000 of the original 50,000 tracking systems now remain to be fully upgraded by the end of 2026. Of these, 4,000 have already been delivered to customers and are in the process of being connected, while a further 4,000 units are yet to be replaced. More than 83% of these 4,000 units remaining are user-installed units which have been purposefully left until this year; pending the availability of the TCSV18, which was released into production in March 2026. The Group is confident of completing this project on time.
The Group is proactively managing the transition away from 2G technology ahead of the anticipated UK network sunset in 2029. Replacement of 2G units is being carried out at natural customer touchpoints, including service interactions, new installations, and upgrade or upsell activity. The remaining installed base is actively monitored and continues to reduce in line with expectations. Based on current progress and ongoing support from network partners, management does not currently expect the planned 2G network switch-off to have a material impact on the Group.
Telematics developments
Quartix completed all regulatory approvals on its next generation, OBD 4G 'dongle' style telematics tracking system during the period with significant numbers of units manufactured and installed - especially across the French customer base where the new generation OBD system is replacing the remaining 2G OBD systems. The development team has now utilised the same low-cost core design to produce a derivative 4G Cat M1 model for the US market. PTCRB approvals are under their final review and manufacturing will see full production available in August. A further derivative product providing a simple 2-wire self-installed product for the US market is expected at the end of the year.
Software and mobile applications
During the period, Quartix successfully deployed a beta version of a new user interface (UI) to InfoPoint customers between April and June. The Group is on track for a full commercial release within the next six months, with an initial target to transition at least 5,000 customers to the new UI as their primary platform within six months of launch. Post-release, new features currently in development will be continuously integrated to support the broader customer base, enabling the legacy interface to be fully decommissioned by early 2028.
Financial Performance
Revenue for the period increased by 12% to £19.4m (2025: £17.3m); 97% of this revenue derives from recurring subscriptions. Profit before tax for the period increased by 21% to £4.8m (2025: £4.0m). Adjusted EBIT increased by 21% to £4.9m (2025: £4.0m), this increase in profit can be attributed to growth in the subscription base, pricing and cost reductions over the past 12 months.
Cash flow from operations after tax and investing activities, or free cash flow, increased to £3.0m (2025: £2.5m). Net cash increased to £4.8m at 30 June 2026 (June 2025: £4.1m; Dec 2025: £5.6m).
The Group's reported tax charge for the period was £2.2m (2025: £0.9m). This includes a £1.1m prior-year adjustment relating to FY24 and FY25, arising after the Group's 2025 year-end reporting following work undertaken by external tax advisors in June 2026 to refile the FY24 tax return under the Group's updated IAS 16 accounting policy. Excluding this adjustment, the underlying tax charge for the period was £1.1m, resulting in an underlying profit after tax of £3.7m (2025: £3.1m).
Basic earnings per share were 5.52p (2025: 6.50p). On a diluted basis earnings per share were 5.51p (2025: 6.50p).
Recommended Interim Dividend
The Board has recommended an interim dividend of 2.70p (2025: 2.50p) per share, £1.3m in aggregate. This was approved by the Board on 27 July 2026. The interim dividend will be paid on 24 September 2026 to shareholders on the register on 28 August 2026. The ex-dividend date is therefore 27 August 2026.
Governance and the Board
The Board is comprised of two Non-Executive Directors: Alison Seekings and Ian Spence, the Company Secretary and myself as Executive Chairman.
For further details regarding Corporate governance, please see the Company's investor website (search: "Quartix investors").
Outlook
Continued growth in ARR with the strong increase in the ARR per vehicle of 3% across the subscription base, together with improvements in net revenue retention, manufacturing costs and overhead efficiency, are strengthening the Group's capacity to invest further in profitable growth in the second half and into 2027.
This will include planned investment to support the launch of the Group's dashcam offering in Continental Europe in the first half of 2027, extending the Group's product capabilities and supporting future revenue growth.
The Board remains confident in delivering market expectations* for the current year in respect of revenue, Adjusted EBIT and free cash flow. This confidence is underpinned by the Group's recurring revenue model, improving operational efficiency and disciplined approach to investment. The Company therefore looks forward to the remainder of the year, and 2027, with confidence.
*Note: the Company believes that, prior to this announcement, market expectations for 2026 performance in terms of revenue, Adjusted EBIT and free cashflow were £40.3m, £10.1m and £4.9m respectively.
Andrew Walters
Executive Chairman
Consolidated Statement of Comprehensive Income
|
|
Notes |
30 June 2026 Unaudited £'000 |
Restated 30 June 2025 Unaudited £'000 |
31 December 2025 Audited £'000 |
|
|
|
|
|
|
|
Revenue |
3 |
19,358 |
17,320 |
35,707 |
|
Cost of sales |
|
(3,875) |
(3,735) |
(9,579) |
|
|
|
|
|
|
|
Gross profit |
|
15,483 |
13,585 |
26,128 |
|
|
|
|
|
|
|
Sales & Marketing expenses |
9 |
(5,843) |
(4,854) |
(8,300) |
|
Administrative expenses |
|
(4,791) |
(4,709) |
(9,148) |
|
|
|
|
|
|
|
Operating profit |
|
4,849 |
4,022 |
8,680 |
|
|
|
|
|
|
|
Finance income receivable |
|
15 |
- |
15 |
|
Finance costs payable |
|
(16) |
(13) |
(28) |
|
|
|
|
|
|
|
Profit for the period before taxation |
|
4,848 |
4,009 |
8,667 |
|
|
|
|
|
|
|
Tax (expense) |
|
(2,176) |
(862) |
(2,286) |
|
|
|
|
|
|
|
Profit for the period |
|
2,672 |
3,147 |
6,381 |
|
|
|
|
|
|
|
Other Comprehensive income: |
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
Exchange difference on translating foreign operations |
|
192 |
(32) |
271 |
|
Other comprehensive income for the year, net of tax |
|
192 |
(32) |
271 |
|
Total comprehensive income attributable to the equity shareholders of Quartix Technologies plc |
|
2,864 |
3,115 |
6,652 |
|
|
|
|
|
|
|
Adjusted EBIT |
5 |
4,908 |
4,040 |
8,755 |
|
|
|
|
|
|
|
Earnings per ordinary share (pence) |
6 |
|
|
|
|
Basic |
|
5.52 |
6.50 |
13.18 |
|
Diluted |
|
5.51 |
6.50 |
13.17 |
Consolidated Statement of Financial Position
Company registration number: 06395159
|
|
|
30 June 2026 |
Restated 30 June 2025 |
31 December 2025 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
Assets |
Notes |
£'000 |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
|
Goodwill |
|
14,029 |
14,029 |
14,029 |
|
Property, plant and equipment |
|
18,021 |
16,309 |
17,027 |
|
Contract cost assets |
|
364 |
422 |
428 |
|
Total non-current assets |
|
32,414 |
30,760 |
31,484 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
42 |
25 |
25 |
|
Contract cost assets |
|
1,339 |
1,420 |
1,477 |
|
Trade and other receivables |
|
5,059 |
4,735 |
4,595 |
|
Cash and cash equivalents |
|
4,767 |
4,148 |
5,567 |
|
Total current assets |
|
11,207 |
10,328 |
11,664 |
|
|
|
|
|
|
|
Total assets |
|
43,621 |
41,088 |
43,148 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
3,936 |
3,800 |
3,949 |
|
Provisions |
|
21 |
30 |
21 |
|
Contract liabilities |
|
4,632 |
4,178 |
4,174 |
|
Current tax liabilities |
|
1,453 |
1,166 |
679 |
|
|
|
10,042 |
9,174 |
8,823 |
|
Non-current liabilities |
|
|
|
|
|
Lease liabilities |
|
487 |
761 |
505 |
|
Deferred tax liabilities |
|
904 |
572 |
921 |
|
|
|
1,391 |
1,333 |
1,426 |
|
|
|
|
|
|
|
Total liabilities |
|
11,433 |
10,507 |
10,249 |
|
|
|
|
|
|
|
Net assets |
|
32,188 |
30,581 |
32,899 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Called up share capital |
8 |
485 |
484 |
484 |
|
Share premium account |
8 |
6,332 |
6,332 |
6,332 |
|
Equity reserve |
|
34 |
104 |
143 |
|
Capital redemption reserve |
|
4,663 |
4,663 |
4,663 |
|
Translation reserve |
|
(201) |
(413) |
(174) |
|
Retained earnings |
|
20,875 |
19,411 |
21,451 |
|
Total equity attributable to equity shareholders of Quartix Technologies plc |
|
32,188 |
30,581 |
32,899 |
Consolidated Statement of Changes in Equity
|
|
Share capital |
Share premium account |
Capital redemption reserve |
Equity reserve |
Translation reserve |
Retained earnings |
Total equity |
|
|
£'000 |
£,000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2024 |
484 |
6,332 |
4,663 |
163 |
(309) |
8,269 |
19,602 |
|
Opening Adjustments |
- |
- |
- |
- |
(136) |
9,371 |
9,235 |
|
Restated balance at 31 December 2024 |
484 |
6,332 |
4,663 |
163 |
(445) |
17,640 |
28,837 |
|
Increase to Equity reserve in relation to options issues and cancelled |
- |
- |
- |
18 |
- |
- |
18 |
|
Recycle of Equity Reserve to P&L |
- |
- |
- |
(77) |
- |
77 |
- |
|
Dividend paid |
- |
- |
- |
- |
- |
(1,453) |
(1,453) |
|
Transactions with owners |
- |
- |
- |
(59) |
- |
(1,376) |
(1,435) |
|
Foreign currency translation differences |
- |
- |
- |
- |
32 |
- |
32 |
|
Profit for the period |
- |
- |
- |
- |
- |
3,147 |
3,147 |
|
Total comprehensive income |
- |
- |
- |
- |
32 |
3,147 |
3,179 |
|
Balance at 30 June 2025 |
484 |
6,332 |
4,663 |
104 |
(413) |
19,411 |
30,581 |
|
Increase to Equity reserve in relation to options issues and cancelled |
- |
- |
- |
56 |
- |
- |
56 |
|
Recycle of Equity Reserve to P&L |
- |
- |
- |
(17) |
- |
17 |
- |
|
Dividend paid |
- |
- |
- |
- |
- |
(1,211) |
(1,211) |
|
Transactions with owners |
- |
- |
- |
39 |
- |
(1,194) |
(1,155) |
|
Foreign currency translation differences |
- |
- |
- |
- |
239 |
- |
239 |
|
Profit for the period |
- |
- |
- |
- |
- |
3,234 |
3,234 |
|
Total comprehensive income |
- |
- |
- |
- |
239 |
3,234 |
3,473 |
|
Balance at 31 December 2025 |
484 |
6,332 |
4,663 |
143 |
(174) |
21,451 |
32,899 |
|
Opening Adjustments |
|
- |
- |
- |
(219) |
219 |
- |
|
Increase to Equity reserve in relation to options issues and cancelled |
1 |
- |
- |
56 |
- |
- |
57 |
|
Recycle of Equity Reserve to P&L |
- |
- |
- |
(165) |
- |
165 |
- |
|
Dividend paid |
- |
- |
- |
- |
- |
(3,632) |
(3,632) |
|
Transactions with owners |
1 |
- |
- |
(109) |
(219) |
(3,248) |
(3,575) |
|
Foreign currency translation differences |
- |
- |
- |
- |
192 |
- |
192 |
|
Profit for the period |
- |
- |
- |
- |
- |
2,672 |
2,672 |
|
Total comprehensive income |
- |
- |
- |
- |
192 |
2,672 |
2,864 |
|
Balance at 30 June 2026 |
485 |
6,332 |
4,663 |
34 |
(201) |
20,875 |
32,188 |
Consolidated Statement of Cash Flows
|
|
|
30 June 2026 |
Restated 30 June 2025 |
31 December 2025 |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
Cash generated from operations |
7 |
7,624 |
5,814 |
12,587 |
|
Taxes paid |
|
(1,401) |
(598) |
(2,082) |
|
Cash flow from operating activities |
|
6,223 |
5,216 |
10,505 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Additions to property, plant and equipment |
|
(3,587) |
(2,984) |
(6,034) |
|
Proceeds from disposal of assets |
|
344 |
315 |
684 |
|
Interest received |
|
15 |
0 |
15 |
|
Cash flow from investing activities |
|
(3,228) |
(2,669) |
(5,335) |
|
|
|
|
|
|
|
Cash flow from operating activities after investing activities (free cash flow) |
|
2,995 |
2,547 |
5,170 |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Repayment of lease liabilities |
|
(123) |
(101) |
(213) |
|
Dividend paid |
|
(3,632) |
(1,453) |
(2,664) |
|
Cash flow from financing activities |
|
(3,755) |
(1,554) |
(2,877) |
|
|
|
|
|
|
|
Net changes in cash and cash equivalents |
|
(760) |
993 |
2,293 |
|
Cash and cash equivalents, beginning of period |
|
5,567 |
3,101 |
3,101 |
|
Exchange differences on cash & cash equivalents |
|
(40) |
54 |
173 |
|
Cash and cash equivalents, end of period |
|
4,767 |
4,148 |
5,567 |
Notes to the Financial Statements (unaudited)
1 General information
Quartix Technologies plc ("the Company") and its subsidiaries ("the Group") a leading supplier of subscription-based vehicle tracking systems, software and services.
The Company was re-registered as a public company on 31 July 2014 and is incorporated and domiciled in the UK.
2 Significant accounting policies
Basis of preparation
The financial information has been prepared in accordance with recognition and measurement principles of International accounting standards in conformity with the requirements of the Companies Act 2006 ("IFRS (UK)") and in accordance with those parts of the Companies Act 2006 that are relevant to companies which report under IFRS (UK). The accounting policies adopted are consistent with those of the financial statements for the year ended 31 December 2025, as described in those financial statements. In preparing these interim financial statements, the Board has not sought to adopt IAS 34 "Interim financial reporting".
The figures for the six-month periods ended 30 June 2026 and 30 June 2025 have not been audited.
The figures for the year ended 31 December 2025 have been extracted from, but do not constitute, the consolidated financial statements of Quartix Technologies plc for that year. The original financial statements for the year ended 31 December 2025 have been delivered to the Registrar of Companies and included an Auditors' Report, which was unqualified and did not contain a statement under section 498(2) or section 498(3) of the Companies Act 2006.
Going concern
Global events continue to contribute to adverse economic pressures and economic uncertainties. The Company is taking appropriate action to monitor, address and mitigate the uncertainties and increased risks facing the Company as a result and have taken these additional uncertainties into account in assessing the going concern position.
The Board takes all reasonable steps to review and consider any factors that may affect the ability of the Group to continue as a going concern. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group is able to generate sufficient liquidity. The Group enjoys a strong income stream from its subscription base while current liabilities include a substantial provision for deferred revenue which is a non-cash item.
After assessing the forecasts and liquidity of the business, for the next 18 months and the longer-term strategic plans, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing consolidated financial statements.
Contract Cost Assets
The Group incurs costs to fulfil its customer contracts, which include commission costs, equipment costs, installation costs and carriage costs amongst other costs. Costs to fulfil a customer contract are divided into:
· costs that give rise to an asset; and
· costs that are expensed as incurred.
When determining the appropriate accounting treatment for such costs, the Group firstly considers any
other applicable standards. If those standards preclude capitalisation of a particular costs, then an asset is
not recognised under IFRS 15.
If other standards are not applicable to costs to fulfil a customer contract, the Group applies the following criteria which, if met, result in capitalisation of costs that:
· directly relate to a contract;
· generate or enhance resources that will be used in satisfying (or in continuing to satisfy)
performance obligations in the future; and
· are expected to be recovered
The Group has determined that, where the relevant criteria are met, that the staff commission and distributor commission costs qualify to be accounted for as costs to fulfil a customer contract.
The contract cost assets are amortised over the expected contract period on a systematic basis that reflects the revenue stream generated by them, and this cost is included in cost of sales. The expected contract term has been calculated as an average of the population of new orders in the year, and this calculation will be reviewed annually.
At each reporting date, the Group determines whether or not the contract cost assets are impaired by
comparing the carrying amount of the asset with the remaining amount of consideration that the Group
expects to receive less the costs that relate to providing services under the relevant contract.
Property, plant and equipment
Property, plant and equipment is stated at historical cost, net of accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, in line with IAS 16.16-16.17.
Assets under construction (AUC) are capitalised as non-current assets during the construction period and are not depreciated until they are available for use, with only directly attributable costs included. Components held for manufacture of telematics appliances and appliances not yet final assembled are held in AUC.
Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with the item will flow to the Group and the cost can be measured reliably; all other expenditure, including day‑to‑day servicing, is recognised in the consolidated statement of comprehensive income as incurred, consistent with IAS 16's distinction between repairs and capital improvements.
Routine service calls, repairs and maintenance, and refurbishment costs that merely preserve the existing level of service potential of the Group's appliances are expensed as incurred, whereas expenditure that enhances the performance of an asset or extends its useful life is capitalised as part of the asset's carrying amount.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the straight-line method, on the following bases:
· Telematics appliances 7-years straight line
· Leasehold properties The life of the lease
· Office equipment 25% straight line
· Motor Vehicles The life of the lease
The assets' residual values, useful lives and depreciation methods are reviewed at the end of each reporting period and adjusted prospectively if appropriate, in accordance with IAS 16 and IAS 8.
Any gain or loss on disposal of property, plant and equipment that are directly used in generating revenue (for which depreciation is charged to cost of sales) is recognised within cost of sales, so that the total cost of providing goods and services reflects both ongoing depreciation and disposal effects of those assets.
Gains and losses on disposal of other property, plant and equipment are recognised within administrative expenses as part of other operating income and expenses, consistent with the function of those assets.
Telematics appliances
Most of the Group's property, plant and equipment comprises telematics appliances used by customers to access the Group's telematics services. These appliances are specific to the Group's telematics platform and are not compatible with third party platforms; likewise, third party tracking units are not compatible with
the Group's platform. The Group retains legal title to appliances that are not sold to customers and depreciates them over their estimated seven-year useful economic life, reflecting expected patterns of deployment, return and redeployment (typically up to two redeployments over the life of the asset).
Depreciation on these service-related appliances is presented within cost of sales because the assets are used directly in generating the Group's telematics service revenue.
3 Revenue
Revenues from external customers in the Group's major markets have been identified based on the customer's geographical location and are disclosed below.
|
|
30 June 2026 |
Restated 30 June 2025 |
31 December 2025 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Geographical analysis by destination |
|
|
|
|
United Kingdom |
10,528 |
9,742 |
19,899 |
|
France |
5,106 |
4,444 |
9,217 |
|
Other European territories |
2,103 |
1,500 |
3,335 |
|
United States of America |
1,621 |
1,634 |
3,256 |
|
|
19,358 |
17,320 |
35,707 |
4 Property, plant and equipment
As a result of the change in accounting policy as detailed in note 9, the Group's PPE disaggregated by primary geographical markets is as follows:
|
|
|
Restated |
|
|
|
30 June |
30 June |
31 December |
|
|
2026 |
2025 |
2025 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
United Kingdom |
9,783 |
8,628 |
9,022 |
|
France |
6,981 |
6,194 |
6,629 |
|
United States of America |
1,257 |
1,487 |
1,376 |
|
|
18,021 |
16,309 |
17,027 |
5 Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)
|
|
30 June 2026 |
Restated 30 June 2025 |
31 December 2025 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Operating profit |
4,849 |
4,022 |
8,680 |
|
Share-based payment expense (incl. cash settled) |
59 |
18 |
75 |
|
Adjusted EBIT |
4,908 |
4,040 |
8,755 |
|
Depreciation on PPE - owned |
17 |
20 |
38 |
|
Depreciation on PPE - right of use |
107 |
88 |
185 |
|
Depreciation on PPE - owned appliances |
1,697 |
1,485 |
3,060 |
|
Impairment of PPE - owned appliances |
(60) |
0 |
(42) |
|
Loss on disposal of owned appliances |
587 |
605 |
1,239 |
|
Share-based payment expenses (incl cash settled) |
(59) |
(18) |
(75) |
|
EBITDA |
7,197 |
6,220 |
13,160 |
6 Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Quartix Technologies plc divided by the weighted average number of shares in issue during the period. The earnings per share calculation relates to continuing operations of the Group.
|
|
Profits attributable to shareholders |
Weighted average number of shares |
Basic profit per share amount |
Fully diluted weighted average number of shares |
Diluted profit per share amount |
||
|
|
£'000 |
|
in pence |
|
in pence |
||
|
Earnings per ordinary share |
|
|
|
|
|
||
|
Period ended 30 June 2026 |
2,672 |
48,440,983 |
5.52 |
48,455,156 |
5.51 |
||
|
Restated Period ended 30 June 2025 |
3,147 |
48,411,272 |
6.50 |
48,430,602 |
6.50 |
||
|
Year ended 31 December 2025 |
6,381 |
48,420,583 |
13.18 |
48,433,474 |
13.17 |
||
|
|
|
|
|
|
|
||
For diluted earnings per share, the weighted average number of ordinary shares is adjusted to assume the conversion of all dilutive potential ordinary shares. Dilutive potential ordinary shares are those share options where the exercise price is less than the average market price of the Company's ordinary shares during the period.
7 Notes to the cash flow statement
Cash flow adjustments and changes in working capital
|
|
30 June 2026 |
Restated 30 June 2025 |
31 December 2025 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
Profit before tax |
4,848 |
4,009 |
8,667 |
|
|
|
|
|
|
Foreign exchange |
293 |
19 |
(278) |
|
Depreciation & impairment of PPE |
1,761 |
1,593 |
3,241 |
|
Loss on disposal of PPE |
587 |
605 |
1,239 |
|
Interest income |
(15) |
0 |
(15) |
|
Lease interest expense |
16 |
13 |
28 |
|
Share based payment expense |
59 |
18 |
75 |
|
Operating cash flow before movement in working capital |
7,549 |
6,257 |
12,957 |
|
|
|
|
|
|
(Increase)/ decrease in trade and other receivables |
(481) |
(601) |
(428) |
|
(Increase)/ decrease in contract cost assets |
188 |
(105) |
(131) |
|
(Increase)/ decrease in inventories |
(17) |
0 |
0 |
|
Increase / (decrease) in trade and other payables |
(89) |
(120) |
(149) |
|
Increase in contract liabilities |
474 |
383 |
338 |
|
Cash generated from operations |
7,624 |
5,814 |
12,587 |
8 Equity
|
Allotted, called up and fully paid |
Number of ordinary shares of £0.01 each |
Share capital £'000 |
Share premium £'000 |
|
|
|
|
|
|
At 1 January 2025 |
48,392,178 |
484 |
6,332 |
|
Shares issued |
37,978 |
- |
- |
|
At 30 June 2025 |
48,430,156 |
484 |
6,332 |
|
Shares issued |
- |
- |
- |
|
At 31 December 2025 |
48,430,156 |
484 |
6,332 |
|
Shares issued |
25,125 |
1 |
- |
|
At 30 June 2026 |
48,455,281 |
485 |
6,332 |
All shares issued in the period to 30 June 2026 relate to the exercise of share options.
9 Explanation of change in accounting policy
During 2025 the Group received a letter from the FRC requesting further information in relation to the accounting treatment of the tracking units and associated installation and carriage costs and the presentation of related cash flows.
Since 2022, the Group had recognised equipment costs, installation costs and carriage costs as incremental costs over an average expected contract term, on a systematic basis in line with IFRS 15.
Reclassification of tracking units and dashcams as property, plant and equipment
Following the FRC review and management's reassessment of the Group's accounting for tracking systems and dashcams, it has been concluded that these items meet the definition of property, plant and equipment under IAS 16 Property, Plant and Equipment. Although customers have physical possession of the devices, the Group retains legal title and the ability to disconnect and reconnect the devices to its telematics services, and therefore retains control of the assets. The devices are used in the supply of telematics services, are expected to be used for more than one period, and may be redeployed between customers.
As a result of this reassessment, tracking systems and dashcams are recognised as property, plant and equipment on initial recognition and remain classified as such until disposal. Directly attributable costs, including installation and carriage costs, form part of the cost of these assets in accordance with IAS 16.
In addition, the replacement provision for units to be provided to customers free of charge as a result of the network upgrade in France, originally recognised in 2023, is eliminated in full with replacement units now recognised as part of Property, Plant and Equipment.
Change in accounting policy and restatement
In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the Group applied this change in accounting policy retrospectively in the consolidated financial statements for the year ended 31 December 2025. Comparative information for the period ended 30 June 2025 has therefore been restated where necessary.
Previously, the costs of tracking systems and dashcams (including installation and carriage costs) were recognised as contract cost assets and amortised over the average initial contract term. Under the revised policy, these costs are capitalised within property, plant and equipment and depreciated over the economic life of the devices in accordance with IAS 16.
Where a customer has not purchased the tracking system, Quartix retains legal title to the unit and has a contractual right to charge the customer a 'lost unit' fee if the unit is lost or not returned on termination of services. Under the revised accounting policy, these fees are no longer recognised as revenue but are instead presented as a gain on disposal of property, plant and equipment. This change in presentation resulted in a decrease in revenue of £0.3m for the period ended 30 June 2025, with a corresponding increase in gains on disposal classified within cost of sales.
Deferred tax assets at 1st January 2025 was eliminated and a deferred tax liability was created, which is primarily made up of the reversal of the deferred tax asset recognised in 2023 for the 2G replacement provision.
As at 1 January 2025, the restatement increased the Group's net assets by £9,235k to £28,837k. The restatement affects all primary statements; however, in the consolidated cash flow statement the
impact is limited to a reclassification of cash flows from operating activities to investing activities, with no effect on free cash flow. Further details of the restatements by line item are set out below.
The impact of capitalising telematics appliance costs as PPE per IAS 16 on the financial statements:
A Consolidated Statement of Financial Position
|
1 January 2025 |
As previously reported |
Adjustments |
As Restated |
|
|
£'000 |
£000 |
£'000 |
|
Property, plant and equipment |
560 |
14,906 |
15,466 |
|
Deferred tax assets |
737 |
(737) |
- |
|
Contract cost assets[1] |
6,170 |
(4,435) |
1,735 |
|
Inventories |
1,732 |
(1,707) |
25 |
|
Other assets |
21,245 |
- |
21,245 |
|
Total assets |
30,444 |
8,027 |
38,471 |
|
Current tax liabilities |
(369) |
(657) |
(1,026) |
|
Provisions |
(2,251) |
2,185 |
(66) |
|
Deferred tax liabilities |
- |
(320) |
(320) |
|
Other liabilities |
(8,222) |
- |
(8,222) |
|
Total liabilities |
(10,842) |
1,208 |
(9,634) |
|
Net Assets |
19,602 |
9,235 |
28,837 |
|
|
|
|
|
|
Retained earnings |
8,269 |
9,371 |
17,640 |
|
Translation reserve |
(309) |
(136) |
(445) |
|
Other |
11,642 |
- |
11,642 |
|
Total Equity |
19,602 |
9,235 |
28,837 |
|
30 June 2025 |
As previously reported |
Adjustments |
As Restated |
|
|
£'000 |
£000 |
£'000 |
|
Property, plant and equipment |
756 |
15,553 |
16,309 |
|
Deferred tax assets |
596 |
(596) |
- |
|
Contract cost assets[2] |
6,629 |
(4,787) |
1,842 |
|
Inventories |
1,143 |
(1,118) |
25 |
|
Other |
22,912 |
1 |
22,913 |
|
Total assets |
32,036 |
9,053 |
41,089 |
|
Current tax liabilities |
(521) |
(645) |
(1,166) |
|
Provisions |
(1,135) |
1,104 |
(31) |
|
Other |
(9,342) |
31 |
(9,311) |
|
Total liabilities |
(10,998) |
490 |
(10,508) |
|
Net Assets |
21,038 |
9,543 |
30,581 |
|
|
|
|
|
|
Retained earnings |
9,671 |
9,740 |
19,411 |
|
Translation reserve |
(216) |
(197) |
(413) |
|
Other |
11,583 |
- |
11,583 |
|
Total Equity |
21,038 |
9,543 |
30,581 |
8 Explanation of change in accounting policy relating to IAS 16 (continued)
B Consolidated Statement of Comprehensive Income
|
For the period ended 30 June 2025 |
As previously reported |
Adjustments |
As Restated |
|
|
£'000 |
£000 |
£'000 |
|
|
|
|
|
|
Revenue |
17,635 |
(315) |
17,320 |
|
Cost of sales |
(5,382) |
1,647 |
(3,735) |
|
Sales & Marketing* |
(3,925) |
(929) |
(4,854) |
|
Other expenses (including FX variance) |
(4,782) |
73 |
(4,709) |
|
Operating profit |
3,546 |
476 |
4,022 |
|
Net finance costs |
(13) |
- |
(13) |
|
Tax expense |
(862) |
- |
(862) |
|
Net profit |
2,671 |
476 |
3,147 |
|
|
|
|
|
|
Other comprehensive income |
200 |
(232) |
(32) |
|
Total Comprehensive income |
2,871 |
244 |
3,115 |
|
Earnings per ordinary share (pence) |
5.52 |
0.98 |
6.50 |
|
Diluted earnings per ordinary share (pence) |
5.52 |
0.98 |
6.50 |
*Sales and marketing adjustments relate entirely to the reclassification of distributor commission costs which were previously classified as cost of sales and are now recognised as sales & marketing cost, separate to the change in accounting policy.
C Consolidated Statement of Cash Flows
|
For the period ended 30 June 2025 |
As previously reported |
Adjustments |
As Restated |
|
|
£'000 |
£000 |
£'000 |
|
|
|
|
|
|
Profit |
2,671 |
476 |
3,147 |
|
Adjusted for: |
|
|
|
|
- tax expense |
862 |
- |
862 |
|
Profit before tax |
3,533 |
476 |
4,009 |
|
Foreign exchange |
85 |
(66) |
19 |
|
Depreciation |
109 |
1,484 |
1,593 |
|
Loss on disposal |
- |
605 |
605 |
|
Other |
31 |
- |
31 |
|
Operating cashflow before working capital |
3,758 |
2,499 |
6,257 |
|
Changes in contract cost assets |
(381) |
276 |
(105) |
|
Changes in inventories |
597 |
(597) |
- |
|
Change in provision |
(520) |
484 |
(36) |
|
Other |
(300) |
(2) |
(302) |
|
Cash generated from operations |
3,154 |
2,660 |
5,814 |
|
|
|
|
|
|
Taxes paid |
(598) |
- |
(598) |
|
Cash flow from operating activities |
2,556 |
2,660 |
5,216 |
|
|
|
|
|
|
Investing Activities |
|
|
|
|
Additions to property, plant and equipment |
(9) |
(2,975) |
(2,984) |
|
Proceeds from disposals of assets |
- |
315 |
315 |
|
Other |
- |
- |
- |
|
Cash flow from investing activities |
(9) |
(2,660) |
(2,669) |
|
Cash flow from operating activities and after investing activities (free cash flow) |
2,547 |
- |
2,547 |
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