TIDMTRAK
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
GBP14.74m (2016: GBP13.18m). This like-for-like increase represents
a strong growth in the continuing business activities of 24%,
taking into account a revenue reduction of GBP1.02m due to the
planned exit from the lower margin CEM activities made during the
period. Recurring revenues continued to grow, up 15% to GBP5.41m
(2016: GBP4.69m); 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 GBP2.31m* as
at the end of September, a GBP1.56m improvement since the start of
the financial year (H1 2016/17: GBP4.40m), (FY 2016/17: GBP3.87m).
Cash amounted to GBP2.72m and the available undrawn revolving
credit facility has increased to GBP3.70m.
*Net debt is defined as cash (GBP2.72m) less bank and hire
purchase debt (GBP5.03m).
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 Tel: +44 (0) 20 7220
& Corporate Broker) 0500
Ed Frisby / Simon Hicks - www.finncap.com
Corporate Finance
Tim Redfern / Richard Chambers
- Corporate Broking
Media enquiries:
Buchanan
Henry Harrison-Topham / Victoria Tel: +44 (0) 20 7466 5000
Hayns
Trakm8@buchanan.uk.com 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
END
MSCZBLFLDBFBFBX
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