Quartix Holdings PLC Trading Statement (4085U)
January 18 2017 - 2:00AM
UK Regulatory
TIDMQTX
RNS Number : 4085U
Quartix Holdings PLC
18 January 2017
18 January 2017
Quartix Holdings plc
("Quartix" or the "Company")
Trading Statement
Quartix Holdings plc, one of Europe's leading suppliers of
subscription-based vehicle tracking systems, software and services,
reports that it will publish results for the year ended 31(st)
December 2016 on Monday 27(th) February 2017.
Revenue for the period is anticipated to be slightly ahead of
market expectations and profit is expected to be in line with
expectations. Free cash-flow continued at a strong level, and the
Company expects to be in a position to pay a supplementary dividend
along with the final dividend, in line with the policy it announced
in February 2016. The results, together with accompanying
presentations, will be posted on the Company's website at
www.quartix.net/investors, and shareholders will be welcome to
submit any questions for management via the site.
The Company's subscription base in its core fleet operations
increased by 14% in the UK to over 71,000 vehicles, by 95% in the
USA to more than 6,000 vehicles, and by 26% in France to just under
10,000 vehicles.
New unit installations in the insurance sector grew by 22% to
69,000 vehicles. Despite this growth, installations in the second
half were 13% lower than in the first half. This trend was in
keeping with the decision announced at the time of the Company's
interim results in July to focus on its core fleet market and on
only those insurance opportunities which offer satisfactory margins
and which are closely aligned to its fleet business, a trend we see
increasing in 2017. Quartix continues to take steps to manage its
cost base in line with this strategy, particularly given continued
price pressure in the insurance market.
Our strong financial performance in the year allowed us to
increase investment in key product and market developments in the
second half. We believe that the Company has significant
opportunity for growth in its fleet business, particularly in the
USA. We ended the year with good growth in fleet installations in
the USA and have taken the decision to make additional investment
in business development in 2017. The additional investment, taken
together with the strategic decision to move away from low margin
insurance sales means that we are now expecting to deliver 2017
results broadly in line with 2016 results.
Andy Walters, Managing Director, commented: "We are delighted
with the progress made in 2016, having increased our fleet
subscription base by 19% to more than 87,000 vehicles in total. We
completed some key product initiatives and expanded our footprint
in the USA and now believe that it is appropriate to increase
investment in the development of this market, which we estimate to
be more than 5 times the size of the UK market. I look forward to
updating shareholders on these initiatives at the time of our
results announcements."
For further information, please contact:
Quartix (www.quartix.net)
Andy Walters, Managing Director
David Bridge, Finance Director 01686 806 663
finnCap (Nominated Adviser
and Broker)
Matt Goode / Scott Mathieson
(Corporate Finance)
Stephen Norcross (Corporate
Broking) 020 7200 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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