TIDMTRAK
RNS Number : 9755I
Trakm8 Holdings PLC
08 December 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information for the purposes of Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310. With the publication of
this announcement, this information is now considered to be in the
public domain.
8 December 2022
TRAKM8 HOLDINGS PLC
("Trakm8", "Company" or the "Group")
Half Year Results
Trakm8 Holdings plc (AIM: TRAK), the global telematics and data
insight provider, announces its unaudited results for the six
months ended 30 September 2022:
Financial Highlights
6 months 6 months Year to
to to 31
30 Sept 30 Sept 2021 March 2022
2022
-----------
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
---------- ------------- -----------
Revenue 9,012 9,021 18,111
---------- ------------- -----------
of which, recurring revenue(1) 5,076 4,806 9,806
---------- ------------- -----------
Profit/(Loss) before tax (2,413) 47 (122)
---------- ------------- -----------
Profit/(Loss) after tax (1,775) 273 187
---------- ------------- -----------
Adjusted Profit/(Loss) before
tax(2) (1,077) 444 3
---------- ------------- -----------
Cash generated from operating
activities 1,435 868 3,810
---------- ------------- -----------
Net Debt(3) 6,243 6,157 5,395
---------- ------------- -----------
Basic earnings (loss) per
share (3.55p) 0.55p 0.37p
---------- ------------- -----------
Adjusted basic earnings (loss)
per share (1.38p) 1.22p 0.41p
---------- ------------- -----------
1 Recurring revenues are generated from ongoing service and
maintenance fees
2 Before exceptional costs and share based payments
3. Total borrowings less cash excluding IFRS 16 adjustment for
leased property and motor vehicles
Operational Overview
-- H1 2022 results:
o Revenues maintained despite challenging macroeconomic
conditions
o Profit impacted by:
-- Lower software sales compared to prior period
-- Higher material costs
-- Exceptional costs from our strategic refocus and cost
reduction programme
o Improved cash generation from operations despite losses
-- Continuation of new contract wins:
o New telematics contract awards with Insurance customers
o Approximately 299,000 connections (September 2021: 255,000
connections), an increase of 44,000 connections (17%) in the last
12 months
-- H2 and FY2024 outlook:
o Significant reduction in overhead costs in line with the
Company's trading and strategy update announced on 14 September
2022
o Benefit of higher connected base increasing recurring service
fee income
o Several new Insurance customers launching during H2 but mainly
impacting revenues in FY2024 and beyond
o Large software contract renewal before the financial year
end
Outlook
The Board is confident that the improved trading as a result of
reduced costs, increased service fees and software contract license
sales will ensure the Group meets current market expectations for
revenues and adjusted profit.
- Ends -
For further information:
Trakm8 Holdings plc
John Watkins, Executive Chairman Tel: +44 (0) 1675 434 200
Jon Edwards, Chief Financial Officer www.trakm8.com
Allenby Capital Limited (Nominated Tel: +44 (0)20 3328 5656
Adviser & Broker)
David Hart/ Vivek Bhardwaj, Corporate www.allenbycapital.com
Finance
Tony Quirke, Sales and Corporate Broking
About Trakm8
Trakm8 is a UK based technology leader in fleet management,
insurance telematics, connected car, and optimisation. Through IP
owned technology, the Group uses AI data analytics collected from
its installed base of telematics units to fine tune the algorithms
that are used to produce its' solutions; these monitor driver
behaviour, identify crash events and monitor vehicle health to
provide actionable insights to continuously improve the security
and operational efficiency of both company fleets and private
drivers.
The Group's product portfolio includes the latest data analytics
and reporting portal (Trakm8 Insight), integrated
telematics/cameras/optimisation, self-installed telematics units
and one of the widest ranges of installed telematics devices.
Trakm8 has over 299,000 connections.
Headquartered in Coleshill near Birmingham alongside its
manufacturing facility, the Group supplies to the Fleet,
Optimisation, Insurance and Automotive sectors to many well-known
customers in the UK and internationally including the AA, Saint
Gobain, EON, Iceland Foods, Parts Alliance, Direct Line Group,
ByMiles and Ingenie.
Trakm8 has been listed on the AIM market of the London Stock
Exchange since 2005. Trakm8 is also recognised with the LSE Green
Economy Mark.
www.trakm8.com / @Trakm8
Executive Chairman's Statement
I report Trakm8's results for the six months ended 30 September
2022.
Revenues
The first half of the financial year was in line with recent
Company guidance. Revenues for the six months ended 30 September
2022 were similar to the corresponding period in the previous year
at GBP9.01m.
There was a 26% increase in Insurance and Automotive revenues to
GBP4.18m and a reduction of 15% in Fleet and Optimisation revenues
to GBP4.83m
During the period, unit sales increased by 61% to 103,000, with
Insurance unit sales increasing by 118% to 90,000 and Fleet unit
sales decreasing by 9% to 8,000.
In addition, during the period, connections increased by 13% to
299,000 (31.3.2022: 264,000). Insurance & Automotive
connections increased 16% to 225,000 (31.3.22: 193,000). With low
attrition experienced, Fleet connections increased by 4% to 74,000
(31.3.22: 71,000).
Recurring revenues in the period increased over the previous
year by 5% to GBP5.08m and represent 56% of Group revenues. In
addition, the Group generated GBP0.17m of software revenues (H1
2020: GBP0.98m), which represented 2% of Group revenues. In line
with the Company's announcement on 14 September 2022, the timing of
contract renewals has resulted in the bulk of this year's software
sales taking place in H2.
Costs
The Group has encountered a number of challenges as a result of
the availability of production components during the period.
Notwithstanding this, with our integrated engineering and
manufacturing teams we have maintained supplies to customers
without significant interruptions. The Board expects that supply
chain constraints will significantly ease going forward. However,
in order to achieve customer deliveries on time, considerable
exceptional hardware costs of circa GBP0.21m were incurred by the
Group during the period.
The Group's gross profit margin has reduced to 58% (2021: 65%).
This is due to the higher hardware revenues as a percentage of
sales and the reduction in software sales during the period.
Total overhead costs, excluding exceptional costs, increased by
GBP0.84m to GBP6.10m (H1 2021: GBP5.26m). This is the result of
reduced furlough support of GBP0.39m, a GBP0.28m increase in real
estate and IT costs and a GBP0.07m increase in non-payroll sales
& marketing spend. Underlying payroll costs further reduced
overall by GBP0.01m despite inflationary pressures.
Exceptional costs increased during the period to GBP1.32m. This
reflects GBP0.90m of cost associated with the strategic refocus,
GBP0.21m in additional costs to mitigate the impact of post
Covid-19 electronic component supply chain challenges and GBP0.21m
of other costs.
Towards the end of the period, Trakm8 implemented a very
substantial reduction in headcount and overhead costs, which is
expected to result in a minimum of GBP2.4m annualised reduction in
operating costs. This is associated with the concentration on our
more successful markets and products. This action is largely now
complete from which the trading performance should benefit going
forward.
Results
The Group generated an adjusted loss of GBP1.08m (2021: profit
GBP0.44m), loss before tax of GBP2.41m (2021: profit GBP0.05m) and
loss after tax of GBP1.77m (2021: GBP0.27m).
Financial position
Cash generation from operating activities was GBP1.44m (H1 2021:
GBP0.87m). As at 30 September 2022, the Group had net bank debt,
excluding the Convertible Loan Note and the impact of the IFRS16
lease liability, of GBP4.67m (GBP7.65m including the Convertible
Loan Note and IFRS 16 lease liability) which is GBP0.73m less than
as at 31 March 2022. As at 30 September 2022, the Group had
GBP1.17m of cash on hand and a further GBP0.50m of available funds
under an overdraft facility. In September 2022, the Group completed
a funding round by the issue of GBP1.58m of Convertible Loan
Notes.
The overall cash inflow for the period was GBP0.29m (H1 2021:
outflow of GBP1.48m).
Post period end, the Group completed the HMRC repayment schedule
ahead of time, thus eliminating the outstanding liability of
GBP0.9m as at 31 March 2022.
Strategy and Outlook
The Group has been following the strategy outlined in the
Group's 2022 Annual Report and as subsequently modified by the
Group's trading update on 14 September 2022. Our focus is to
provide ever more meaningful insights to our customers using the
data generated by our installed devices and other connections in
order to ensure that they can run their operations more efficiently
and safely. We have concentrated our focus on our most successful
business revenue streams.
Our primary strategy going forward is the growth of our business
through more connections, increased device sales and higher service
fees. Due to the high level of new contract wins across the
business and reduced rates of attrition in Fleet, the number of
connections has increased overall by 17.2% in the past 12 months
and by 13.2% in past six months. The number of devices sold by the
Group has increased by 61% to 103,000 (H1 2021: 64,000). Our focus
going forward will be on the Insurance and Automotive space, and to
build our connected vehicle base along with Enterprise Fleet
customers.
Trakm8 has focused on delivering market leading technology and
ensuring that the solutions are generating the best possible ROIs
for our customers. To this point, we have maintained the levels of
expenditure on R&D. We continue to own the majority of IP in
our value chain. We have been building out greater functionality of
existing solutions rather than a wider range and have moved out of
the initial development phase of the Insight platform into one of
maturity. We have updated all our devices to utilise the latest
technology, accelerated by the supply constraints of previous
components. As a result, going forward we will meet our objectives
of remaining a leading-edge technology Company but at a
substantially lower investment cost.
We are also striving to improve the efficiencies of our business
in every possible way. We have sought to minimise the impact of
salary inflation and higher marketing costs and, towards the end of
the period end, undertaken a very significant reduction in overhead
costs as we focus our activities on our narrower objectives. This
should benefit the Group in the second half of this year and on
into future years.
The Group is pleased that it will have several new Insurance
customers launching during the second half of this financial year,
albeit the financial impact of these will mainly occur in FY2024
and beyond. In addition, the Board is hopeful of a successful
outcome to a large software contract renewal scheduled before the
financial year end.
Unaudited management accounts for October and November show a
substantial improvement in profitability as a result of the actions
taken by the Group. We expect this to continue through the
remainder of this and next year.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the six months
to 30 September 2022
----------------------------------------------------------------------------------------------------------------
Six months Six months Year to
to 30 September to 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 3 9,012 9,021 18,111
Cost of sales (3,786) (3,177) (7,004)
Gross profit 5,226 5,844 11,107
Other income 4 16 13 13
Administrative expenses excluding exceptional
costs (6,097) (5,262) (10,193)
Exceptional administrative costs 7 (1,319) (306) (568)
Total administrative costs (7,416) (5,568) (10,761)
Operating profit/(loss) (2,174) 289 359
Finance income 29 32 67
Finance costs 8 (268) (274) (548)
Profit/(Loss) before taxation (2,413) 47 (122)
Income tax 636 226 309
Profit/(Loss) for the period (1,777) 273 187
Other Comprehensive Income
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translation of foreign
operations 2 4 10
Total other comprehensive income 2 4 10
------------------ ------------------- --------------
Total Comprehensive Profit/(Loss) for the
period attributable to owners of the parent 5 (1,775) 277 197
------------------ ------------------- --------------
Profit/(Loss) before taxation 6 (2,413) 47 (122)
Exceptional administrative costs 1,319 306 568
IFRS2 Share based payments charge 17 91 (443)
------------------ ------------------- --------------
Adjusted profit/(loss) before tax (1,077) 444 3
Earnings per ordinary share (pence) attributable
to owners of the Parent
Basic 9 (3.55) 0.55 0.37
Diluted 9 (3.55) 0.55 0.37
The results relate to continuing operations.
Unaudited Consolidated Statement of Changes in Equity for the six months
to 30 September 2022
----------------------------------------------------------------------------------------------------------------------------------------
Share Share Merger Translation Treasury Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 April
2021 500 14,691 1,138 193 (4) 3,604 20,122
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Comprehensive
income
Loss for the
period - - - - - 273 273
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 4 - - 4
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Total
comprehensive
income - - - 4 - 273 277
Transactions
with
owners
IFRS 2
Share-based
payments - - - - - 91 91
Transactions
with
owners - - - - - 91 91
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Balance as at
30 Sept
2021 500 14,691 1,138 197 (4) 3,968 20,490
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Comprehensive
income
Loss for the
period - - - - - (86) (86)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 6 - - 6
Total
comprehensive
income - - - 6 - (86) (80)
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Transactions
with
owners
IFRS2
Share-based
payments - - - - - (534) (534)
Transactions
with
owners - - - - - (534) (534)
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Balance as at
31 March
2022 500 14,691 1,138 203 (4) 3,348 19,876
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Comprehensive
income
Profit for the
period - - - - - (1,777) (1,777)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 2 - - 2
Total
comprehensive
income - - - 2 - (1,777) (1,775)
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Transactions
with
owners
IFRS2 Share
based
payments - - - - - 17 17
Convertible
loan - 11 - - - - 11
Transactions
with
owners - 11 - - - 17 28
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Balance as at
30 Sept
2022 500 14,702 1,138 205 (4) 1,588 18,129
-------------- --------------- --------------- -------------- ----------------- ------------------ --------------
Unaudited Consolidated Statement of Financial Position as at 30 September
2022
------------------------------------------------------------------------------------------------------------
As at 30 As at 30 As at 31
September September March
2022 2021 2022
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 10 23,277 22,568 23,012
Plant, property and equipment 1,034 911 803
Right of use assets 11 1,751 2,187 2,032
Deferred income tax asset - - -
Amounts receivable under finance
leases 39 39 27
26,101 25,705 25,874
----------------- ------------------- ---------------
Current assets
Inventories 1,352 1,368 1,322
Trade and other receivables 7,158 7,301 7,944
Corporation tax receivable 1,150 1 709
Cash and cash equivalents 1,174 888 1,004
10,834 9,558 10,979
----------------- ------------------- ---------------
Current liabilities
Trade and other payables (8,806) (5,339) (7,521)
Borrowings 12 (897) (1,140) (1,115)
Right of use liability 12 (487) (708) (612)
Provisions - - (27)
(10,190) (7,187) (9,275)
----------------- ------------------- ---------------
Current assets less current liabilities 644 2,371 1,704
----------------- ------------------- ---------------
Total assets less current liabilities 26,745 28,076 27,578
----------------- ------------------- ---------------
Non-current liabilities
Trade and other payables (474) (474) (626)
Borrowings 12 (6,176) (5,386) (4,855)
Right of use liability 12 (1,258) (1,459) (1,367)
Provisions (160) (151) (112)
Deferred income tax liability (548) (116) (742)
(8,616) (7,586) (7,702)
----------------- ------------------- ---------------
Net assets 18,129 20,490 19,876
----------------- ------------------- ---------------
Equity
Share capital 13 500 500 500
Share premium 14,702 14,691 14,691
Merger reserve 1,138 1,138 1,138
Translation reserve 205 197 203
Treasury reserve (4) (4) (4)
Retained earnings 1,588 3,968 3,348
Total equity attributable to owners
of the parent 18,129 20,490 19,876
----------------- ------------------- ---------------
Unaudited Consolidated Cash Flow Statement for the six months to 30 September
2022
------------------------------------------------------------------------------------------------------------
Six months Six months
to to Year to
30 September 30 September 31 March
2022 2021 2022
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net cash generated from operating
activities 14 1,435 868 3,810
----------------- ---------------------- -------------
Cash flows from investing activities
Purchases of property, plant and
equipment (332) (230) (420)
Proceeds from sale of property, plant
and equipment - - 125
Purchases of software (8) (2) (48)
Capitalised Development costs (1,447) (1,396) (2,911)
Net cash used in investing activities (1,787) (1,628) (3,254)
----------------- ---------------------- -------------
Cash flows from financing activities
New convertible loan note 1,580 - -
Loan arrangement fees (13) - (5)
Repayment of bank loans (512) (168) (743)
Repayment of obligations under lease
agreements (324) (280) (674)
Interest paid (209) (274) (500)
Net cash generated from financing
activities 522 (722) (1,922)
----------------- ---------------------- -------------
Net (decrease)/increase in cash and
cash equivalents 170 (1,482) (1,366)
Cash and cash equivalents at beginning
of period 1,004 2,370 2,370
Cash and cash equivalents at end
of period 1,174 888 1,004
----------------- ---------------------- -------------
Notes To The Unaudited Consolidated Financial Statements
-----------------------------------------------------------------------------------------------------
1. Basis of preparation
The Group's interim results for the 6 months to 30 September 2022 (prior year
30 September 2021) were approved by the Board of Directors on 7 December 2022.
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.
Trakm8 Holdings PLC ("Trakm8") is a public limited company incorporated in
the United Kingdom under the Companies Act 2006. Trakm8 is domiciled in the
United Kingdom and its ordinary shares are traded on AIM, the market operated
by the London Stock Exchange plc.
The accounting policies adopted in the preparation of the interim financial
statement are the same as those set out in the Group's annual financial statements
for the year ended 31 March 2022. The financial statements have been prepared
on the historical cost basis except for certain liabilities and share based
payment liabilities which are measured at fair value.
The interim financial statements have not been audited or reviewed by Group's
auditors pursuant to the Auditing Practice Board guidance on 'Review of Interim
Financial Information' and do not include all the information required for
full annual financial statements.
The financial information contained in this report is condensed and does not
constitute statutory accounts of the Group within the meaning of Section 434(3)
of the Companies Act 2006. Statutory accounts for the year ended 31 March 2022
have been delivered to the Registrar of Companies. The audit report of those
accounts was unqualified, did not draw attention to any matters by way of emphasis
and did not contain a statement under Section 498(2) or (3) of the Companies
Act 2006.
Going concern
The consolidated interim financial statements are prepared on a going concern
basis. The directors report that, having reviewed current performance and projections
of its working capital and long term funding requirements, including assessments
against the covenants agreed with our bank and downward sensitivity analysis,
they are satisfied that the Group has sufficient resources to continue in operation
for the foreseeable future, a period of not less than 12 months from the date
of this report. Accordingly, they continue to adopt the going concern basis
in preparing the condensed financial statements.
2. Risks and uncertainties
The Board has considered the principal risks and uncertainties for the remaining
half of the financial year and determined that the risk presented in the 31
March 2022 Annual Report, described as follows, also remain relevant to the
rest of the financial year: Significant operational system failure; Cyber-attack
and data security; Operating in a fast-moving technology industry where we
will always be at risk from new products being launched; Adverse mobile network
changes; Attracting and maintaining high-quality employees; Access to long
term and working capital; Electronics supply chain constraint and Business
disruption from Covid-19. These are detailed on pages 17 to 19 of the 2022
Annual Report, a copy of which is available on the Group's website at www.trakm8.com.
Notes To The Unaudited Consolidated Financial Statements
----------------------------------------------------------------------------------------------------------
3. Segmental Analysis
The chief operating decision maker ("CODM") is identified as the Board. It
continues to define all the Group's trading under the single Integrated Telematics
Technology segment and therefore review the results of the group as a whole.
Consequently, all the Group's revenue, expenses, assets and liabilities are
in respect of one Integrated Telematics Technology segment.
The Board as the CODM review the revenue streams of Integrated Fleet, Optimisation,
Insurance and Automotive Solutions (Solutions) as part of their internal reporting.
Solutions represents the sale of the Group's full vehicle telematics and optimisation
services, engineering services, professional services and mapping solutions
to customers.
A breakdown of revenue within these streams Six months Six months Year
are as follows: to to to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Solutions: 9,012 9,021 18,111
Fleet and optimisation 4,828 5,712 11,217
Insurance and automotive 4,184 3,309 6,894
----------------- ------------------ --------------
4. Other income
Six months Six months Year
to to to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Grant income 16 13 13
16 13 13
----------------- ------------------ --------------
5. Profit/(Loss) per ordinary share attributable to the owners
of the parent
Six months Six months Year
to to to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit/(Loss) attributable to the
owners of the parent (1,775) 277 197
----------------- ------------------ --------------
6. Adjusted profit/(loss)
before tax
Adjusted Profit/(Loss) Before Tax is monitored by the Board
and measured as follows:
Profit/(Loss) Before
Tax (2,413) 47 (122)
Exceptional administrative
costs 1,319 306 568
Share based payments 17 91 (443)
Adjusted profit/(loss)
before tax (1,077) 444 3
----------------- ------------------ --------------
Notes To The Unaudited Consolidated Financial Statements
------------------------------------------------------------------------------------------------
7. Exceptional costs
Six months Six months
to to Year to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Integration and restructuring costs 902 45 107
Covid-19 costs 417 446 646
Furlough grant income - (185) (185)
1,319 306 568
--------------- --------------- ----------
The integration and restructuring costs in the current year relate to the Group's
recent decision to implement a change in strategy to focus on the Insurance,
Automotive and Optimisation sectors. These costs include the reduction of headcount
in engineering, sales, marketing and associated support functions and will
aid profitability in the year ending 31 March 2024.
The Group incurred exceptional costs in the current and prior financial year
relating to the Covid-19 pandemic.
These costs include the increased cost of temporarily buying raw materials
from auxiliary markets to ensure
continuity of supply of key components which were in constraint due to supply
chain issues caused by the
pandemic. In the prior year, these costs include the costs of employees during
periods of furlough.
Furlough grant income relates to other income received from the Coronavirus
Job Retention Scheme for employees furloughed because of Covid-19.
Detailed explanation of prior year exceptional costs are detailed on page
63 of the 2022 Annual Report, a copy of which is available on the Group's website
at www.trakm8.com.
8. Finance costs
Six months Six months
to to Year to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Interest on bank loans 200 198 388
Amortisation of debts issue costs 30 24 48
Interest on Hire Purchase and similar
agreements 38 52 112
268 274 548
--------------- --------------- ----------
Notes To The Unaudited Consolidated Financial Statements
-------------------------------------------------------------------------------------------------------
9. Earnings Per Ordinary
Share
The earnings per Ordinary share have been calculated in accordance with IAS
33 using the profit for the period and the weighted average number of Ordinary
shares in issue during the period as follow:
Six months Six months Year
to to to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
Profit/(Loss) the year
after taxation (1,777) 273 187
Exceptional administrative
costs 1,319 306 568
Share based payments 17 91 (443)
Tax effect of adjustments (251) (58) (108)
Adjusted profit/(loss) after
taxation (692) 612 204
----------------- ------------------ -------------
No. No. No.
'000 '000 '000
Number of Ordinary shares
of 1p each 50,004 50,004 50,004
Basic weighted average number of Ordinary
shares of 1p each 50,004 50,004 50,004
Diluted weighted average number of Ordinary
shares of 1p each* 50,079 50,004 50,057
----------------- ------------------ -------------
Basic earnings/(loss)
per share (3.55p) 0.55p 0.37p
Diluted earnings/(loss)
per share (3.55p) 0.55p 0.37p
Adjust for effects
of:
Exceptional costs 2.14p 0.50p 0.92p
Share based payments 0.03p 0.18p (0.89p)
Adjusted basic earnings/(loss)
per share (1.38p) 1.22p 0.41p
Adjusted diluted earnings/(loss) per share (1.38p) 1.22p 0.41p
* In the year ended March 2022, the Group awarded Tranch AI with an exercise
price of 16p. This grant is dilutive as the exercise price is less than the
average share price as at the period end.
Notes To The Unaudited Consolidated Financial Statements
------------------------------------------------------------------------------------------------------
10. Intangible Assets
Goodwill Intellectual Customer Development Software Total
property Relationships costs
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 31 March 21 10,417 1,920 100 19,242 1,759 33,438
Additions - Internal
development - - - 1,214 - 1,214
Additions - External
purchases - - - 182 2 184
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2021 10,417 1,920 100 20,638 1,761 34,836
Additions - Internal
development - - - 1,307 46 1,353
Additions - External
purchases - - - 208 - 208
--------- ------------- --------------- ------------ --------- --------
As at 31 March 2022 10,417 1,920 100 22,153 1,807 36,397
Additions - Internal
development - - - 1,282 - 1,282
Additions - External
purchases - - - 165 8 173
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2022 10,417 1,920 100 23,600 1,815 37,852
--------- ------------- --------------- ------------ --------- --------
Amortisation
As at 31 March 21 - 1,920 100 7,974 1,257 11,251
Charge for period - - - 924 93 1,017
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2021 - 1,920 100 8,898 1,350 12,268
Charge for period - - - 1,019 98 1,117
--------- ------------- --------------- ------------ --------- --------
As at 31 March 2022 - 1,920 100 9,917 1,448 13,385
Charge for period - - - 1,085 105 1,190
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2022 - 1,920 100 11,002 1,553 14,575
--------- ------------- --------------- ------------ --------- --------
Net book amount
As at 30 September
2022 10,417 - - 12,598 262 23,277
--------- ------------- --------------- ------------ --------- --------
As at 31 March 2022 10,417 - - 12,236 359 23,012
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2021 10,417 - - 11,740 411 22,568
--------- ------------- --------------- ------------ --------- --------
As at 31 March 21 10,417 - - 11,268 502 22,187
--------- ------------- --------------- ------------ --------- --------
Notes To The Unaudited Consolidated Financial Statements
---------------------------------------------------------------------------------------------------------
11. Right of use assets
Furniture,
fixtures Computer
Leased buildings and equipment equipment Motor vehicles Total
COST GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March 21 2,098 551 350 615 3,614
Additions - - - - -
Disposals - - - (25) (25)
----------------- --------------- ----------- --------------- --------
As at 30 September
2021 2,098 551 350 590 3,589
Additions - - 56 94 150
Disposals - - - (72) (72)
----------------- --------------- ----------- --------------- --------
As at 31 March 2022 2,098 551 406 612 3,667
Additions - - - - -
Disposals - - - - -
----------------- --------------- ----------- --------------- --------
As at 30 September
2022 2,098 551 406 612 3,667
----------------- --------------- ----------- --------------- --------
AMORTISATION
As at 31 March 21 529 124 120 329 1,102
Charge for period 133 35 57 100 325
Disposals - - - (25) (25)
----------------- --------------- ----------- --------------- --------
As at 30 September
2021 662 159 177 404 1,402
Charge for period 132 35 57 81 305
Disposals - - - (72) (72)
----------------- --------------- ----------- --------------- --------
As at 31 March 2022 794 194 234 413 1,635
Charge for period 133 35 36 77 281
Disposals - - - - -
----------------- --------------- ----------- ---------------
As at 30 September
2022 927 229 270 490 1,916
----------------- --------------- ----------- --------------- --------
Net book amount
As at 30 September
2022 1,171 322 136 122 1,751
----------------- --------------- ----------- --------------- --------
As at 31 March 2022 1,304 357 172 199 2,032
----------------- --------------- ----------- --------------- --------
As at 30 September
2021 1,436 392 173 186 2,187
----------------- --------------- ----------- --------------- --------
As at 31 March 21 1,569 427 230 286 2,512
----------------- --------------- ----------- --------------- --------
Notes To The Unaudited Consolidated Financial Statements
--------------------------------------------------------------------------------------------------------------------
12. Borrowings
As at 30 September As at 30 September As at 31 March
2022 2021 2022
--------------------------- ---------------------------- ----------------------------------
Current Non-Current Current Non-Current Current Non-Current
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Borrowings 897 4,602 1,140 5,386 1,115 4,855
Convertible
unsecured
loan note - 1,574 - - - -
Right of use
liability 487 1,258 708 1,459 612 1,367
Totals 1,384 7,434 1,848 6,845 1,727 6,222
---------- --------------- ----------- --------------- ------------------- -------------
All borrowings are held in sterling and the Directors consider their carrying
amount approximates to their fair values.
Borrowings comprise
of the
following loans:
A GBP5.3m term loan with HSBC. The loan is secured by a fixed and floating
charge on all the assets of the Group. It is repayable by 22 monthly instalments
from 30 September 2021 of GBP86,000 and a final repayment of the outstanding
balance on 31 October 2023 and bears interest at a floating rate of 5.1% over
base rate. As at 30 September 2022 the Group owed GBP4.5m (March-22: GBP4.9m).
A GBP0.5m overdraft facility with HSBC. The overdraft facility bears an interest
rate of 5.3% over LIBOR on the drawn amount. As at 30 September 2022 the Group
had not used this overdraft facility.
A GBP1.5m growth capital loan with MEIF WM Debt LP. The loan bears a fixed
interest rate of 8% per annum and is repayable in 15 quarterly instalments
commencing 30 September 2021. The loan is secured by a secondary fixed and
floating charge on all the assets of the Group. As at 30 September 2022 the
Group owed GBP975K (March-22: GBP1.2m).
A GBP1.6m convertible unsecured loan note. The loan bears a fixed interest
rate of 12% per annum, with a two-year term from its issue date 14 September
2022. The interest is payable quarterly from issue date until repayment on
13 September 2024. The Loan Note is convertible at a conversion price of 17.10p,
a ten percent discount to the closing mid-market price of a Trakm8 ordinary
share on 13 September 2022, the last practicable date prior to its completion.
The Group's obligations under right of use assets are secured by the lessors' title to the
leased assets.
Obligations under right of use assets by category at 30 September
2022 were as follows:
Furniture,
Freehold fixtures Computer Motor
property and equipment equipment vehicles Software Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Current 203 70 113 74 27 487
Non-current 1073 15 111 52 7 1258
Total 1,276 85 224 126 34 1,745
---------- --------------- ----------- --------------- ------------------- -------------
The maturity of obligations under right of use assets as at
30 September 2022 were as follows:
Furniture,
Freehold fixtures Computer
property and equipment equipment Motor vehicles Software Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Within 1 year 203 70 113 74 27 487
1 to 2 years 238 15 70 27 7 357
2 to 5 years 626 - 41 25 - 692
More than 5 years 209 - - - - 209
Total 1,276 85 224 126 34 1,745
---------- --------------- ----------- --------------- ------------------- -------------
Notes To The Unaudited Consolidated Financial Statements
--------------------------------------------------------------------------------------------------------------------
13. Share Capital
As at 30 September As at 30 September As at 31 March
2022 2021 2022
--------------------- ---------------------------- -------------------------------
No's No's No's
000's GBP'000 000's GBP'000 000's GBP'000
Authorised:
Ordinary shares of
1p each 200,000 200,000 200,000 200,000 200,000 200,000
Allotted, issued and
fully paid:
Ordinary shares of
1p each 50,004 500 50,004 500 50,004 500
Movement in share capital: GBP'000
As at 1 April 2021 500
------------
As at 30 September
2021 500
------------
As at 31 March 2022 500
As at 30 September
2022 500
------------
The Company currently holds 29,000 Ordinary shares in treasury representing
0.06% (March-22: 0.06%) of the Company's issued share capital. The number
of 1 penny Ordinary shares that the Company has in issue less the total number
of Treasury shares is 49,975,002.
14. Cash Generated from
Operations
Six months Six months Year
to to to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net profit/(loss)
before taxation (2,413) 47 (122)
Depreciation 384 535 806
(Profit)/Loss on disposal
of fixed assets 88 - 263
Net bank and other
interest 239 266 481
Exceptional costs 1,319 306 568
Amortisation of intangible
assets 1,190 1,017 2,134
Exchange movements 2 4 10
Share based payments 17 91 (443)
------------------ ----------------- ------------
Operating cash flows before movement in
working capital 826 2,266 3,697
Movement in inventories (30) 41 87
Movement in trade and other
receivables 774 (611) (1,242)
Movement in trade and other
payables 1,133 (1,150) 1,184
Movement in provisions 21 (66) (78)
Cash generated from operations before exceptional
costs 2,724 480 3,648
Cash outflow from exceptional
costs (1,319) (306) (568)
------------------ ----------------- ------------
Cash generated from
operations 1,405 174 3,080
Interest received 29 32 67
Income taxes received 1 662 663
Net cash-inflow from
operating
activities 1,435 868 3,810
------------------ ----------------- ------------
Income taxes received are amounts in relation to Research and Development
activities. Post period end GBP684,000 was received and used to settle the
existing Time to Pay arrangement with HMRC.
Notes To The Unaudited Consolidated Financial Statements
------------------------------------------------------------------------------------------------
15. Further Copies
This statement, full text of the London Stock Exchange announcement and the
results presentation can be found on the Group's website www.trakm8.com and
from the registered office of Trakm8 Holdings PLC. The address of the registered
office is: Roman Way, Roman Park, Coleshill, North Warwickshire, B46 1HG.
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END
IR DZMGZNNMGZZM
(END) Dow Jones Newswires
December 08, 2022 02:00 ET (07:00 GMT)
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