TIDMTRAK
RNS Number : 3225X
Trakm8 Holdings PLC
29 April 2019
29 April 2019
Trakm8 Holdings plc
("Trakm8" or the "Group")
Year End Trading Update & Contract Awards
Trakm8 Holdings plc (AIM:TRAK) a leading telematics and data
supplier to global markets today announces a trading update, for
its financial year ended 31 March 2019 (the 'Period').
Trading
Trakm8 revenues for the Period met current market expectations
at GBP19.2 million, which at 35% less than last year and 28% less
on a like-for-like basis (excluding the contract electronic
manufacturing activities that the Group exited last year) are at
the bottom end of the range previously communicated.
The Group achieved market expectations, set at the time of the
half year results announcement, of adjusted loss before tax of
GBP1.4 million for the Period. Whilst overall the full year was
significantly loss making the Group achieved a positive adjusted
profit for the second half of the year..
The net debt at 31 March 2019 was GBP5.6 million (31 March 2018:
GBP3.3 million) as a result of the loss referred to above. There
was cash of GBP1.2 million and an additional unused revolving
credit facility of GBP0.65 million at the year end. Additionally
the Group received GBP1.4 million of receipts from Customers in the
first week of April.
Fleet connections have grown 4% to 76,000 (FY-2018: 73,000).
Despite Fleet & Optimisation recurring revenues growing 6% to
GBP6.8 million (FY-2018: GBP6.4m), overall total Fleet &
Optimisation solution revenues declined 23% to GBP10.9 million
(FY-2018: GBP14.2m) because of lower hardware and optimisation
system sales.
Insurance & Automotive connections have declined by 5% to
167,000 (FY-2018: 178,000) primarily as a result of a major
customer's loss of market share in the young driver space.
Insurance and Automotive recurring revenues declined 25% to GBP3.3
million (FY-2018: GBP4.4m) and total solution revenues declined 35%
to GBP8.2 million (FY-2018: GBP12.6m) as a result of the declining
connections and lower selling prices on the insurance side and by a
delay into the financial year ending 31(st) March 2020 of the
consumer marketing programme by a key customer in the Automotive
space.
It was encouraging that the value of new contracts secured by
the Group during the final three months of the year were 67% higher
than the average of the previous three quarters. This makes the H2
value of new contracts secured 41% higher than H1.
During the last quarter deliveries started to LexisNexis. At the
period end contracts were secured with Ingenie, one of the UK's
leading insurance brokers that uses telematics to deliver real
driving improvements through behavioural coaching within the UK
motor insurance market and another one of the UK's innovative
insurance providers. Post year end Trakm8 signed a contract with
another new insurance provider. This combined gives us four new
customers in the insurance market to build with for the future.
The number of roadside assistance customers deploying Trakm8
solutions across Europe has increased to 7 and the product has been
launched in Australia.
In the Fleet space new contracts were secured with a number of
medium sized fleets, and renewed for many years each with two of
Trakm8's largest and longest standing customers. The launch of the
Fleet solution with EE has now taken place.
Costs
As previously announced, the Group has implemented an annualised
operational cost reduction of over GBP2.0m. These savings have
enabled us to deploy greater resources towards sales and marketing,
which is in line with our previously expressed strategy.
Outlook
The Board is confident in the Group's future prospects and an
update on trading for the current financial year commencing 1 April
2019 will be provided in conjunction with the 2018/19 final
results.
Notice of Results
The Group expects to announce its final results for the year
ended 31 March 2019 on Monday, 8(th) July 2019.
John Watkins, Executive Chairman of Trakm8 commented:
"Trakm8 finished last year with expected but disappointing
results.
"Insurance and Automotive revenues were badly impacted by
delayed new contracts and customers resetting their marketing
plans. Final quarter revenues and the new contract wins give
confidence that better times are ahead for us in these markets.
"Fleet and Optimisation revenues were impacted by the continued
economic uncertainty and by poor performance of the sales teams
early in the year. The restructured and widened sales team started
to win significantly higher levels of new business in the fourth
quarter and we expect that trend to continue to improve. The growth
in recurring revenues due to improved service revenue per unit is
encouraging. Growth in RH600 integrated camera business and the
Insight platform are expected to accelerate. The scale up with EE
is expected to provide significant additional connections during
this year and beyond.
"We have continued to focus on improving efficiencies in all
aspects of the business, whilst increasing our resources in sales
and marketing and continuing our investment in market leading
products.
"We expect that this new financial year will benefit from lower
direct and indirect costs. These and higher performing sales
activities are expected to deliver a much stronger financial
performance."
- ends-
For further information:
Trakm8 Holdings plc
John Watkins, Executive Chairman Tel: +44 (0) 167 543 4200
Jon Furber, Finance Director www.trakm8.com
Arden Partners plc (Nominated Adviser Tel: +44 (0) 20 7614 5900
& Broker)
Paul Shackleton / Alex Penney www.arden-partners.com
About Trakm8
Trakm8 is a UK based technology leader in fleet management,
insurance telematics, connected car, and optimisation. 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' 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 and
reporting portal (Trakm8 Insight), integrated telematics/cameras,
self-installed telematics units and one of the widest ranges of
installed telematics devices. Trakm8 has over 250,000
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, 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
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END
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