Quartix Holdings PLC Trading Update (6631C)
19 Giugno 2019 - 08:00AM
UK Regulatory
TIDMQTX
RNS Number : 6631C
Quartix Holdings PLC
19 June 2019
19 June 2019
Quartix Holdings plc
("Quartix" or the "Company")
Trading Statement
Quartix Holdings plc, a leading supplier of subscription-based
vehicle tracking systems, software and services in the UK,
announces that it will publish interim results for the six-month
period ending 30 June 2019 on Wednesday 24 July 2019. They will be
posted on the Company's website that morning, together with
accompanying presentations.
Estimates given below are based on management's expectations for
the six-month period ending 30 June 2019 (the "First Half") as at
the date of this announcement and ahead of the Company's period end
on 30 June 2019.
Financial
Management expects to report revenue, adjusted EBITDA and free
cash flow for the First Half of approximately GBP12.6m, GBP3.5m and
GBP3.0m, respectively. This has been delivered alongside a
continuation of the increase in investment in sales and marketing
activity which commenced during the last financial period.
As a result, management's expectations for the full year are
that revenue will now be at least GBP25m and that adjusted EBITDA
and free cash flow will at least meet market expectations* for the
year.
Fleet
This increased investment has driven strong growth in the
Company's core fleet business: total new installations are
approximately 45% ahead of the same period last year, and excellent
progress has been made in each of the Company's existing markets
(UK, France and USA). Fleet revenue in the First Half is expected
to have grown by GBP1m to just over GBP10m.
The fleet subscription base is expected to reach 137,000
vehicles by the end of the First Half and the value of the base
(which is an indicator of future revenues) has also shown
accelerated growth.
Initial results from the Company's marketing initiatives in
Poland and Spain have been encouraging, with approximately 40 new
clients won in each market. A Spanish-language version of the US
website went live in May, as the Company believes that SME
businesses in the Hispanic community represent a significant market
opportunity. A website for Ireland was also launched, and further
regional developments are underway. In each case these developments
have been backed by sales recruitment in the UK and initial
marketing investments.
Insurance
As consistently communicated since July 2016, the Company has
continued to reduce its involvement in lower-margin insurance
tracking operations, in order to focus on growth in its fleet
telematics business. As a result, revenue from insurance telematics
will have declined by approximately GBP1.3m in the First Half.
Insurance telematics now represents just 20% of revenue and
significantly less than that as a percentage of margin
contribution.
Product Development
Earlier this month Quartix achieved full carrier-level and PTCRB
compliance in the USA for its 4G telematics system. This new
product is expected to commence installations in Q3 2019.
In line with the Company's accounting policies, all investment
in development, marketing, new tracking systems and system
installation was fully expensed during the period.
Future Financial Reporting
Quartix is committed to providing investors with clear and
timely information regarding its performance against both financial
and strategic objectives. The Company will therefore include
further segmental financial information for the insurance business
and fleet business in the interim results and thereafter. Further
detail will also be provided about investment in, and the value of,
the Company's committed subscription base, as the latter is a key
indicator of future revenues.
Andy Walters, Chief Executive Officer of Quartix, commented:
"We are delighted with the expansion of our fleet subscription
base in the First Half. We significantly increased investment in
customer acquisition and achieved a substantial improvement in
growth, and are now confident of at least meeting expectations for
revenue, profit and cashflow for the year.
We are well positioned for future growth in our fleet business
and continue to review the opportunities to invest in this further.
We look forward to updating shareholders on our progress on 24
July."
* The Board believes that consensus market expectations for
2019, prior to this announcement, were as follows: Revenue:
GBP24.1; Adjusted EBITDA GBP6.7m; Free Cash Flow: GBP5.4m
The information communicated within this announcement is deemed
to constitute inside information for the purposes of Article 7 of
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information, please contact:
Quartix (www.quartix.net)
Andy Walters, Chief Executive Officer
Daniel Mendis, Chief Financial Officer 01686 806 663
finnCap (Nominated Adviser and Broker)
Matt Goode/ Scott Mathieson/ Hannah
Boros (Corporate Finance)
Alice Lane (Corporate Broking) 020 7220 0500
Cantor Fitzgerald (Join Broker)
Phil Davies & Richard Salmond (Corporate
Finance)
Caspar Shand-Kydd & Arthur Gordon (Sales) 020 7894 7000
This information is provided by RNS, the news service of the
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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