Half Yearly Report
November 19 2009 - 2:00AM
UK Regulatory
TIDMTRAK
RNS Number : 7218C
Trakm8 Holdings PLC
19 November 2009
19 November 2009
TRAKM8 HOLDINGS PLC
("Trakm8" or "the Group")
Unaudited Interim Results
for the six months ended 30 September 2009
Highlights
+--------------+-----------+-----------+----------+
| | Six | Six | Year to |
| | months | months | 31 March |
| | to 30 | to 30 | 2009 |
| | September | September | Audited |
| | 2009 | 2008 | |
| | Unaudited | Unaudited | |
| | | | |
+--------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+-----------+-----------+----------+
| Turnover | 1,706 | 1,995 | 3,679 |
+--------------+-----------+-----------+----------+
| Gross | 1,138 | 1,106 | 2,162 |
| Profit | | | |
+--------------+-----------+-----------+----------+
| Gross | 66.7% | 55.4% | 58.8% |
| Profit % | | | |
+--------------+-----------+-----------+----------+
| Earnings | 244 | (197) | (104) |
| before | | | |
| interest, | | | |
| depreciation | | | |
| & | | | |
| amortisation | | | |
+--------------+-----------+-----------+----------+
| Profit / | 100 | (352) | (402) |
| (loss) | | | |
| before | | | |
| tax | | | |
+--------------+-----------+-----------+----------+
| Net cash | 444 | (134) | 99 |
| and cash | | | |
| equivalents | | | |
+--------------+-----------+-----------+----------+
| Net | 1,554 | 1,227 | 1,182 |
| assets | | | |
+--------------+-----------+-----------+----------+
* Focus on higher margin products results in reversal of previous year's losses
* Gross profit margin increased by 11% on equivalent period last year
* EBITDA of GBP0.24m and profit before tax of GBP0.1m
* Cash improved by GBP0.34m with net cash of GBP0.44m at the period end
* Successful launch of Trakm8 Swift5
Dawson Buck, Chairman, said "It is particularly pleasing to present our latest
interim results that confirm the Group's return to profitability despite a
trading environment universally acknowledged as challenging. Our focus on
technological innovation along with the delivery of high quality and excellent
value fleet solutions to our customers emphasises the growing Trakm8 brand
influence within the industry."
For further information, please visit www.trakm8.com or contact:
+--------------------------------------+-------------------------------------+
| Trakm8 plc | 01747 858 444 |
| John Watkins, Chief Executive | |
| Officer | |
| James Hedges, Finance Director | |
+--------------------------------------+-------------------------------------+
| Tavistock Communications | 020 7920 3150 |
| Simon Hudson | |
+--------------------------------------+-------------------------------------+
| Arbuthnot Securities | 020 7012 2000 |
| Alasdair Younie | |
+--------------------------------------+-------------------------------------+
Chairman's Statement
The first six months of this financial year have continued the positive trends
established in the second half of last year. Although revenue in the period
reduced by 14% to GBP1.71m (2008: GBP1.99m), the focus on higher margin products
and customers in conjunction with the cost reduction initiatives taken last year
have resulted in a profit before tax of GBP0.10m (2008: loss GBP0.35m).
The Company generated a positive cash flow from trading during the period and in
addition improved the balance sheet in May 2009 with a placing of 4,454,046 new
ordinary shares to raise approximately GBP0.27 million (after expenses). Our
net cash position at the end of September 2009 was GBP0.44m (2008: net overdraft
GBP0.13m).
The launch of the next generation Trakm8 Swift server side application has been
very well received with the majority of our customers seeing the advantages of
migrating to this improved service.
Operational Review
During the period the Group started to deliver units as part of the E.ON
contract announced on 25 March 2009. There has been an expansion of the customer
base and new marketing initiatives, and these together with the launch of Trakm8
Swift 5, are delivering positive results.
The market conditions have continued to be difficult with the SME sector
contracting, particularly as a result of the lack of availability of lease
finance. Trakm8 has responded by offering a range of low cost entry products
with no long term commitments. The failure of weaker competitors has also
provided opportunities to expand our customer base.
Trakm8 has made good progress in increasing the number of units in service
operating on the Trakm8 Swift platform. This creates an increasing base of
recurring monthly revenue, which provides a greater predictability to future
income. Trakm8's accounting policy is to not recognise the benefit of these
sales in advance but to do so over the life of the contract to match the
delivery of the goods and services.
The Group continues to invest heavily in technology, development of web based
solutions, onboard CANbus (controller area network), and mapping software. In
addition, considerable progress has been made on the government funded projects.
These projects are jointly funded and have applications that benefit the long
term product portfolio of the Group.
Outlook
The Group is confident that the business is now established on a firmer
financial and operational base. The management team and staff are working well
as a team. Trakm8 now has an exceptionally strong product and service offering
and is one of the very few telematics companies that is a complete system owner.
This is seen as a major commercial advantage when prospective customers are
looking at complex integrations into their legacy IT systems.
The marketing initiatives implemented should ensure the Trakm8 solutions
continue to increase market penetration resulting in further improvements to our
levels of recurring revenues.
The market for smarter management solutions in logistics and fleet management is
benefiting from increasingly cost effective telematics based products and
services. Trakm8 is well placed to benefit from this trend.
DAWSON BUCK
CHAIRMAN
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months to 30 September 2009
+---------------------+------+--------------+--------------+------------+
| | Note | Six months | Six months | Year to |
| | | to 30 | to 30 | 31 March |
| | | September | September | 2009 |
| | | 2009 | 2008 | Audited |
| | | Unaudited | Unaudited | |
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Continuing | | GBP'000 | GBP'000 | GBP'000 |
| operations | | | | |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Revenue | | 1,706 | 1,995 | 3,679 |
+---------------------+------+--------------+--------------+------------+
| Cost of sales | | (568) | (889) | (1,517) |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Gross profit | | 1,138 | 1,106 | 2,162 |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Other income | | 284 | 275 | 473 |
+---------------------+------+--------------+--------------+------------+
| Operating expenses | | (1,314) | (1,719) | (3,018) |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Operating profit | | 108 | (338) | (383) |
| /(loss) | | | | |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Finance income | | - | 3 | 3 |
+---------------------+------+--------------+--------------+------------+
| Finance costs | | (8) | (17) | (31) |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Profit /(loss) | | 100 | (352) | (411) |
| before taxation | | | | |
+---------------------+------+--------------+--------------+------------+
| Taxation | | - | - | 9 |
+---------------------+------+--------------+--------------+------------+
| | | | |
+----------------------------+--------------+--------------+------------+
| Profit / (loss) | 100 | (352) | (402) |
| attributable to the | | | |
| equity shareholders of the | | | |
| parent | | | |
+----------------------------+--------------+--------------+------------+
| | | | | |
+---------------------+------+--------------+--------------+------------+
| Basic profit / | 4 | 0.6 | (2.6) | (2.9) |
| (loss) per share | | | | |
| (pence) | | | | |
+---------------------+------+--------------+--------------+------------+
| Diluted profit / | 4 | 0.6 | (2.6) | (2.9) |
| (loss) per share | | | | |
| (pence) | | | | |
+---------------------+------+--------------+--------------+------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2009
+-------------------------+--+--------------+--------------+-----------+
| | | Six months | Six months | Year to |
| | | to30 | to | 31 March |
| | | September | 30 | 2009 |
| | | 2009 | September | Audited |
| | | Unaudited | 2008 | |
| | | | Unaudited | |
+-------------------------+--+--------------+--------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+--+--------------+--------------+-----------+
| | | | | |
+-------------------------+--+--------------+--------------+-----------+
| Total equity at | | 1,182 | 1,573 | 1,573 |
| beginning of | | | | |
| period | | | | |
+-------------------------+--+--------------+--------------+-----------+
| | | | | |
+-------------------------+--+--------------+--------------+-----------+
| Profit / (Loss) | | 100 | (352) | (402) |
| for the period | | | | |
+-------------------------+--+--------------+--------------+-----------+
| Shares issued | | 270 | - | - |
+-------------------------+--+--------------+--------------+-----------+
| Exchange | | - | - | 1 |
| difference on | | | | |
| translation of | | | | |
| overseas | | | | |
| operations | | | | |
+-------------------------+--+--------------+--------------+-----------+
| IFRS 2 share | | 2 | 6 | 10 |
| based payments | | | | |
+-------------------------+--+--------------+--------------+-----------+
| Total equity at | | 1,554 | 1,227 | 1,182 |
| end of period | | | | |
| | | | | |
+-------------------------+--+--------------+--------------+-----------+
CONSOLIDATED BALANCE SHEET
as at 30 September 2009
+----------------------+----------------+--------------+-------------+
| | 30 September | 30 September | 31 March |
| | 2009 | 2008 | 2009 |
| | Unaudited | Unaudited | Audited |
| | | | |
+----------------------+----------------+--------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------+----------------+--------------+-------------+
| Non-current | | | |
| assets | | | |
+----------------------+----------------+--------------+-------------+
| Intangible | 1,236 | 1,478 | 1,358 |
| assets | | | |
+----------------------+----------------+--------------+-------------+
| Plant, property | 444 | 460 | 443 |
| and equipment | | | |
+----------------------+----------------+--------------+-------------+
| | 1,680 | 1,938 | 1,801 |
+----------------------+----------------+--------------+-------------+
| Current assets | | | |
+----------------------+----------------+--------------+-------------+
| Inventories | 110 | 123 | 159 |
+----------------------+----------------+--------------+-------------+
| Trade and other | 621 | 856 | 700 |
| receivables | | | |
+----------------------+----------------+--------------+-------------+
| Current tax | - | - | 9 |
+----------------------+----------------+--------------+-------------+
| Cash and cash | 444 | 264 | 100 |
| equivalents | | | |
+----------------------+----------------+--------------+-------------+
| | 1,175 | 1,243 | 968 |
+----------------------+----------------+--------------+-------------+
| Current | | | |
| liabilities | | | |
+----------------------+----------------+--------------+-------------+
| Trade and other | (1,006) | (1,225) | (1,270) |
| payables | | | |
+----------------------+----------------+--------------+-------------+
| Borrowings | (54) | (449) | (59) |
+----------------------+----------------+--------------+-------------+
| | (1,060) | (1,674) | (1,329) |
+----------------------+----------------+--------------+-------------+
| | | | |
+----------------------+----------------+--------------+-------------+
| Current assets | 115 | (431) | (361) |
| less current | | | |
| liabilities | | | |
+----------------------+----------------+--------------+-------------+
| Total assets | 1,795 | 1,507 | 1,440 |
| less current | | | |
| liabilities | | | |
+----------------------+----------------+--------------+-------------+
| | | | |
+----------------------+----------------+--------------+-------------+
| Non-current | | | |
| liabilities | | | |
+----------------------+----------------+--------------+-------------+
| Borrowings | (223) | (262) | (240) |
+----------------------+----------------+--------------+-------------+
| Deferred tax | (18) | (18) | (18) |
+----------------------+----------------+--------------+-------------+
| | (241) | (280) | (258) |
| | | | |
+----------------------+----------------+--------------+-------------+
| Net assets | 1,554 | 1,227 | 1,182 |
| | | | |
+----------------------+----------------+--------------+-------------+
+------------------------+------+---------+--------------+-------------+
| Equity | | | | |
+------------------------+------+---------+--------------+-------------+
| |Note | | | |
+------------------------+------+---------+--------------+-------------+
| Called up share | 5 | 188 | 139 | 139 |
| capital | | | | |
+------------------------+------+---------+--------------+-------------+
| Share premium | | 1,719 | 1,358 | 1,358 |
+------------------------+------+---------+--------------+-------------+
| Shares to be | | - | 140 | 140 |
| issued | | | | |
+------------------------+------+---------+--------------+-------------+
| Merger reserve | | 510 | 510 | 510 |
+------------------------+------+---------+--------------+-------------+
| Share based | | 60 | 54 | 58 |
| payment reserve | | | | |
+------------------------+------+---------+--------------+-------------+
| Translation | | 204 | 203 | 204 |
| Reserve | | | | |
+------------------------+------+---------+--------------+-------------+
| Retained loss | | (1,127) | (1,177) | (1,227) |
+------------------------+------+---------+--------------+-------------+
| Total equity | | 1,554 | 1,227 | 1,182 |
| attributable to | | | | |
| the equity | | | | |
| shareholders of | | | | |
| the parent | | | | |
+------------------------+------+---------+--------------+-------------+
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2009
+-----------------------+------+--------------+--------------+------------+
| | | Six months | Six months | Year to |
| | | to | to | 31 March |
| | | 30 September | 30 September | 2009 |
| | | 2009 | 2008 | Audited |
| | | Unaudited | Unaudited | |
| | | | | |
+-----------------------+------+--------------+--------------+------------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+------+--------------+--------------+------------+
| Cash | 6 | 112 | (257) | (17) |
| flows | | | | |
| from | | | | |
| operating | | | | |
| activities | | | | |
+-----------------------+------+--------------+--------------+------------+
| |
+-------------------------------------------------------------------------+
| Cash flows | | | |
| from investing | | | |
| activities | | | |
| | | | |
+------------------------------+--------------+--------------+------------+
| Proceeds on | - | - | 20 |
| disposal of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+------------------------------+--------------+--------------+------------+
| Purchases of | (5) | (3) | (2) |
| property, | | | |
| plant and | | | |
| equipment | | | |
| | | | |
+------------------------------+--------------+--------------+------------+
| Net cash used | (5) | (3) | 18 |
| in investing | | | |
| activities | | | |
+------------------------------+--------------+--------------+------------+
| |
+-------------------------------------------------------------------------+
| Cash flows | | | |
| from financing | | | |
| activities | | | |
| | | | |
+------------------------------+--------------+--------------+------------+
| Repayment of | (31) | (27) | (55) |
| loans | | | |
+------------------------------+--------------+--------------+------------+
| Proceeds from | 269 | - | - |
| share issue | | | |
+------------------------------+--------------+--------------+------------+
| |
+-------------------------------------------------------------------------+
| Net cash used | 238 | (27) | (55) |
| in financing | | | |
| activities | | | |
+------------------------------+--------------+--------------+------------+
| Net increase / | 345 | (287) | (54) |
| (decrease) in | | | |
| cash and cash | | | |
| equivalents | | | |
+------------------------------+--------------+--------------+------------+
| Cash and cash | 99 | 439 | 153 |
| equivalents at | | | |
| beginning of | | | |
| period | | | |
| | | | |
+------------------------------+--------------+--------------+------------+
| Cash and cash | 444 | (134) | 99 |
| equivalents at | | | |
| end of period | | | |
+-----------------------+------+--------------+--------------+------------+
Notes to the financial information (unaudited)
1.The financial information contained in this interim statement has not been
audited or reviewed by the Company's auditor and does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985 or Section 434 of
the Companies Act 2006. The Directors approved and authorised this interim
statement on 18 November 2009.The financial information for the full preceding
year is extracted from the statutory accounts for the financial year ended
31 March 2009. Those accounts, upon which the auditor issued an unqualified
opinion, have been delivered to the Registrar of Companies.
2.Trakm8 Holdings PLC is a public limited company incorporated in the United
Kingdom under the Companies Act 1985. The Company is domiciled in the United
Kingdom and its ordinary shares are traded on the Alternative Investment Market
("AIM").
3.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. IAS 1 (revised
2007) became effective for periods beginning on or after 1 January 2009. The
revised standard has introduced a number of terminology changes and has resulted
in a number of changes in presentation and disclosure. There has been no effect
on the reported results or previous financial position of the Group.
4.Profit / (loss) per ordinary share
+------------------------------------+---------------+--------------+----------+
| | Six months to | Six months | Year to |
| | 30 September | to | 31 March |
| | 2009 | 30 September | 2009 |
| | Unaudited | 2008 | Audited |
| | | Unaudited | |
+------------------------------------+---------------+--------------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+---------------+--------------+----------+
| Profit | 100 | (352) | (402) |
| / | | | |
| (loss) after | | | |
| taxation | | | |
+------------------------------------+---------------+--------------+----------+
Weighted average number of ordinary shares in issue
+-------------------------------+---------------+--------------+----------+
| | No. | No. | No. |
| | '000 | '000 | '000 |
+-------------------------------+---------------+--------------+----------+
| Basic | 17,569 | 13,617 | 13,857 |
+-------------------------------+---------------+--------------+----------+
| Diluted | 17,620 | - 1 | - 1 |
+-------------------------------+---------------+--------------+----------+
1 The diluted loss per share has not been calculated as this would reduce the
reported loss per share for the period.
5.On 8 May 2009, the Company issued 4,454,046 new ordinary shares at a price of
6.5 pence per share with existing shareholders and Directors to raise
approximately GBP0.27m net of expenses.
On 7 August 2009, the Company issued 453,516 new ordinary shares in relation to
the acquisition of PJSoft s.r.o. ("PJ Soft") as disclosed in the announcement on
7 August 2007. The shares were issued in satisfaction of the second and final
equity based deferred consideration payment due to the vendors of PJ Soft.
6.Reconciliation of cash flows from operating activities:
+----------------------------+------------+------------+------------+
| | Six months | Six months | Year to |
| | to | to | 31 March |
| | 30 | 30 | 2009 |
| | September | September | Audited |
| | 2009 | 2008 | |
| | Unaudited | Unaudited | |
+----------------------------+------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Net profit / (loss) | 100 | (352) | (411) |
| before taxation | | | |
+----------------------------+------------+------------+------------+
| Adjustments for: | | | |
+----------------------------+------------+------------+------------+
| Depreciation | 14 | 21 | 39 |
+----------------------------+------------+------------+------------+
| Bank and | 8 | 14 | 28 |
| other | | | |
| interest | | | |
| charges | | | |
+----------------------------+------------+------------+------------+
| Amortisation | 122 | 120 | 240 |
| of | | | |
| intangible | | | |
| assets | | | |
+----------------------------+------------+------------+------------+
| Gain on | - | - | (8) |
| disposal of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+----------------------------+------------+------------+------------+
| Share based | 2 | 6 | 10 |
| payment | | | |
| expense | | | |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Operating cashflows | 246 | (191) | (102) |
| before movement in | | | |
| working capital | | | |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Retranslation | - | - | 1 |
| of overseas | | | |
| operations | | | |
+----------------------------+------------+------------+------------+
| Movement in | 50 | 23 | (13) |
| inventories | | | |
+----------------------------+------------+------------+------------+
| Movement in | 79 | (46) | 109 |
| trade and | | | |
| other | | | |
| receivables | | | |
+----------------------------+------------+------------+------------+
| Movement in | (264) | (62) | (17) |
| trade and | | | |
| other | | | |
| payables | | | |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Cash generated from / | 111 | (276) | (22) |
| (used in) operations | | | |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Interest | (8) | (17) | (31) |
| paid | | | |
+----------------------------+------------+------------+------------+
| Interest | - | 3 | 3 |
| received | | | |
+----------------------------+------------+------------+------------+
| Income taxes | 9 | 33 | 33 |
| received | | | |
+----------------------------+------------+------------+------------+
| | | | |
+----------------------------+------------+------------+------------+
| Net cash generated from | 112 | (257) | (17) |
| /(used in) operating | | | |
| activities | | | |
+----------------------------+------------+------------+------------+
7.Copies of the report are available at the Companies website www.trakm8.com and
also from the registered office of Trakm8 Holdings PLC. The address of the
registered office is: Lydden House, Wincombe Business Park, Shaftesbury, Dorset,
SP7 9QJ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KGMMMKRLGLZM
Trakm8 (LSE:TRAK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trakm8 (LSE:TRAK)
Historical Stock Chart
From Jul 2023 to Jul 2024
