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Trakm8 Holdings PLC (TRAK)

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Monday 23 October, 2017

Trakm8 Holdings PLC

Trading Update and Notice of Results

RNS Number : 2418U
Trakm8 Holdings PLC
23 October 2017
 

For immediate release

23 October 2017

 

Trakm8 Holdings plc

("Trakm8" or the "Group")

 

Trading Update and Notice of Results

 

Trakm8 Holdings plc (AIM:TRAK), a leading telematics and data supplier to global markets, is pleased to provide the following trading update for the six month period ended 30 September 2017.

 

Trading

Trakm8 is pleased to report that trading in the first six months of the current financial year commencing 1 April 2017 has started satisfactorily and is in line with market expectations for the year as a whole.

 

There have been a record number of new contract wins and extensions achieved during the period, due to the continuing high levels of investment in engineering, sales and marketing. As previously announced, new contracts have been secured with Intelematics, Calor Gas and Mecalac and contract extensions with Iceland Foods, Shell, Young Marmalade and Direct Line Group.

 

Revenues continue to gain momentum, up 12% year on year to £14.74m (2016: £13.18m). This like-for-like increase represents a strong growth in the continuing business activities of 24%, taking into account a revenue reduction of £1.02m due to the planned exit from the lower margin CEM activities made during the period. Recurring revenues continued to grow, up 15% to £5.41m (2016: £4.69m); with 217,000 units now reporting to our servers, an increase of 27,000 since the year end (2016: c.177,000). This growth of 14% is attributed to a 6% increase in Fleet Telematics of 4,000 to 70,000 units and a 16% increase in Insurance & Automotive Telematics of 23,000 to 147,000 units.

 

Net debt significantly reduced during the period to £2.31m* as at the end of September, a £1.56m improvement since the start of the financial year (H1 2016/17: £4.40m), (FY 2016/17: £3.87m). Cash amounted to £2.72m and the available undrawn revolving credit facility has increased to £3.70m.

 

*Net debt is defined as cash (£2.72m) less bank and hire purchase debt (£5.03m).

 

Outlook

The Board's outlook for the year is unchanged.  The Group is well positioned for growth in its chosen markets and the Board is confident about Trakm8's future prospects; a further update on trading for the current financial year commencing 1 April 2017 will be provided in conjunction with the 2017/18 half year results.

 

John Watkins, Executive Chairman of Trakm8, said: "Trakm8 has regained good momentum in growing revenues organically, particularly in our core higher margin telematics solutions sales which provide recurring revenues, following the wide range of contracts secured and the planned significant investments in engineering, sales and marketing across the Group in 2017.

 

"We are pleased to have significantly reduced the net debt this period, providing a stable platform from which to pursue our strong pipeline of sales opportunities.

 

"The second half of our financial year has historically achieved higher revenues, profitability and cash generation over the first half and we expect this year to be similar."

 

Notice of Interim Results

The Group confirms that it will announce its Interim Results for the six months ending 30 September 2017 on Monday, 27 November 2017.  An analyst briefing given by John Watkins (Executive Chairman) and Jon Furber (Finance Director), will be held at 09.30am on the day of the Interim Results at the offices of Buchanan (107 Cheapside, London EC2V 6DN).

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

 

- Ends -

 

For further information:

Trakm8 Holdings plc


John Watkins, Executive Chairman

Tel: +44 (0) 1747 858 444

Jon Furber, Finance Director

www.trakm8.com

 


finnCap (Nominated Adviser & Corporate Broker)

Tel: +44 (0) 20 7220 0500

Ed Frisby / Simon Hicks - Corporate Finance

www.finncap.com

Tim Redfern / Richard Chambers - Corporate Broking


 

Media enquiries:

Buchanan

 

Henry Harrison-Topham / Victoria Hayns

Tel: +44 (0) 20 7466 5000

[email protected]

www.buchanan.uk.com

 

About Trakm8

 

Trakm8 is a UK based technology leader in fleet management and insurance telematics, optimisation and dashboard camera systems. Through IP owned technology, the Group analyses data collected by its installed base of telematics units to fine tune the algorithms that are used to produce its telematics based solutions; these score driver behaviour, monitor vehicle health and continuously improve the security and operational efficiency of both private drivers and company fleets.

 

The Group's product portfolio includes cameras (including the recently launched integrated telematics camera), self-installed telematics units and technology to eliminate distracted driving due to mobile phones.

 

Headquartered in Dorset with a manufacturing facility in the West Midlands, the Group supplies, through its dedicated business units Fleet, Optimisation, Insurance and Automotive, many well-known customers in the UK and internationally including the AA, Saint Gobain, EON, Direct Line Group and Young Marmalade.

 

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005.

 

www.trakm8.com / @Trakm8


This information is provided by RNS
The company news service from the London Stock Exchange
 
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