TIDMTRAK
RNS Number : 1139W
Trakm8 Holdings PLC
09 December 2019
9 December 2019
TRAKM8 HOLDINGS PLC
("Trakm8" 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 2019:
Financial Highlights
6 months 6 months Year to 31 Change
to to
30 Sept 2019 30 Sept 2018 March 2019
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
------------- ------------- ----------- -------
Revenue 8,867 8,839 19,145 +0.3%
------------- ------------- ----------- -------
of which, recurring revenue(1) 4,885 5,117 10,087 -5%
------------- ------------- ----------- -------
Operating loss (2,030) (2,815) (3,340) +28%
------------- ------------- ----------- -------
Loss before tax (2,197) (2,926) (3,563) +25%
------------- ------------- ----------- -------
Adjusted operating loss
before tax(2) (1,583) (2,454) (1,452) +35%
------------- ------------- ----------- -------
Loss after tax (1,787) (2,183) (2,506) +18%
------------- ------------- ----------- -------
Cash generated from operations 1,432 (421) (1,752) +440%
------------- ------------- ----------- -------
Net Debt(3) (6,095) (5,730) (5,629) -6%
------------- ------------- ----------- -------
Basic earnings per share (3.57p) (6.08p) (6.20p) +41%
------------- ------------- ----------- -------
Adjusted basic earnings
per share (2.53p) (4.94p) (1.89p) +49%
------------- ------------- ----------- -------
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
Operating highlights
-- H1 2019 results improved year-on-year due to:
o Improved levels of new orders leading to slightly higher
revenues
o Significantly improved gross margins due to lower hardware,
labour, communication and installation costs
o Reduced overheads despite a GBP270k increase in non-cash
amortisation and depreciation (net of IFRS16 impact) as a result of
efficiency improvements implemented in FY2019
o Significantly improved cash generation from operations due to
significant reduction in losses and strong working capital actions,
despite GBP1.01m R&D tax credit cash not received in the period
due to HMRC delays
-- Continuation of new contract wins:
o New contract awards with major clients By Miles, Altrad, and a
number of other Fleet and Vehicle Leasing clients, all deployments
commenced in H1 and continue into H2.
o Installed base continues to grow in Fleet from existing and
new customers offset by Insurance reductions:
-- Approximately 240,000 connections (Sept 2018: 250,000
connections), a decrease of 3,000 connections (1%) in the six month
period since last year end.
-- Stronger H2 and FY2021 outlook:
o Major automotive customer committed to a minimum of 45,000
units over next 12 months
o Ingenie deployment commenced in November
o Lexis Nexis expected to start deployment in January
o Strong level of orders, post period, from existing and new
Fleet customers
o Additional significant efficiency savings implemented
Outlook
The Board is confident that the second half of the year will be
sufficiently improved over the first half to end the year meeting
full year market expectations of increased revenues and modest
adjusted profit before tax.
- 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, Head of Corporate www.arden-partners.com
Finance
Fraser Marshall, Head of Sales
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 240,000
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
Executive Chairman's Statement
Results
I am pleased to report Trakm8's results for the six months ended
30 September 2019.
Revenues increased by 0.3% in the period to GBP8.87m (H1 2018:
GBP8.84m). There was a reduction of GBP0.05m in Insurance and
Automotive revenues and an increase in Fleet and Optimisation
revenues of GBP0.08m. Only one of the 4 new insurance customers
deployed during the period and the recurring revenue decline from
our major insurance customer was not quite offset by the growth in
new device sales. Our major automotive customer did not require any
further devices from us during the period, however they have made a
commitment of 45,000 units over the next twelve months. The Board
is encouraged that the decline in revenue has been arrested and the
first two months of H2 are significantly ahead of last year.
Total recurring revenues decreased by 5% during the period to
GBP4.89m (H1 2018: GBP5.17m), as a result of the decline in the
revenue per unit in the insurance market and decline in install
base of our largest insurance customer. Recurring revenues
represent 55% of Group revenues (2018: 58%). There is an ongoing
trend of lower service fees per unit for the same functionality. At
the period end we had approximately 240,000 units (Sept 2018:
250,000 units) reporting to our servers, being a decrease of 4%
over the last twelve months. This is a decrease of 3,000 units (1%)
since 31 March 2019.
Despite the market continuing to be adversely effected by the
current uncertainty over Brexit and the economy in general Fleet
units installed have increased by 1,000 units to 77,000 (1%) since
March 2019. This is due to improved level of performance from our
Channel and Direct Fleet sales teams resulting in an increase in
new orders especially in the mid-market.
Our largest insurance customer has continued to experience a
decline in young driver policies and as a result the level of new
policies written has been less than those not renewed or cancelled.
By Miles, one of our newly secured customers has deployed a number
of units but not sufficient to cover the decline elsewhere. In
addition our major automotive customer has waited to start its
marketing campaign into the current period. One major new insurance
customer has now deployed in the current period and the other is
expected to do so in January. Our volume automotive customer has
committed to a minimum of 45,000 units over the current period and
the first six months of FY2021. As a result, Insurance &
Automotive connections reduced by 4,000 since March 2019, to
163,000 (-2%).
Gross profit margin has increased to 53% (2018: 43%), with cost
of sales reducing by GBP0.82m to GBP4.17m (H1 2018 GBP5.00m),
despite marginal increase in revenue. This is due to the vigorous
actions taken over the past 12 months to introduce hardware with
lower costs, reduce the direct labour costs and to reduce the cost
of communications and installations. This trend is expected to
continue as further efficiency actions are taken.
Total overhead costs, excluding exceptional costs reduced by
GBP0.17m to GBP6.44m (H1 2018: GBP6.61m). Excluding a GBP0.27m
increase (net of IFRS16 impact) in depreciation and amortisation to
GBP1.32m (H1 2018: GBP1.05m), overheads reduced by GBP0.44m year on
year. This is the result of the cost actions taken over the last 12
months. In addition to this GBP0.44m reduction in overheads the
level of R&D expenditure capitalised has reduced by GBP0.21m.
Exceptional costs in the period include GBP0.23m associated with a
headcount reduction activity undertaken at period end. This is part
of preparing the Company for improved profitability going
forward.
Financial position
Net cash inflow from operating activities was GBP1.43m (H1 2018:
outflow of GBP0.42m), this is despite the R&D tax credit
receipts of GBP1.01m failing to be received before period end due
to HMRC delays (H1 2018: GBP0.97m received in August 2018). This
good result, despite the losses incurred, is as a consequence of
strong working capital management including a GBP0.62m reduction in
inventory.
Our net debt as at September 2019 excluding the impact of the
IFRS16 lease recognition was GBP6.10m (H1 2018: GBP5.73m)
(31.3.2019: GBP5.63m) including GBP0.69m of cash (H1 2018:
GBP2.00m). In addition, the Group at 30 September 2019 held an
undrawn credit facility of GBP0.15m at HSBC. With the changes in
the Net Debt as result of IFRS 16, Net Debt is GBP8.42m.
Strategy
The Group has been following the strategy outlined in the 2019
Annual Report. Our focus is to provide ever more meaningful
insights to our customers using the data generated by our installed
devices and other connections so that they can run their operations
more efficiently and safely.
Our primary strategy going forward is to return to growth of our
business through more connections, increased device sales and
higher service fees. The long awaited deployment, in volume, with
our insurance and automotive customers has now commenced. The Fleet
teams are delivering new contract wins significantly ahead of the
previous year and the pipeline for new opportunities is strong.
Trakm8 has focused on delivering market leading technology and
ensuring that the solutions are generating the best possible ROI's
for our customers. We have reduced the levels of expenditure in
R&D but believe we have appropriate levels of resource to
continue to invest heavily to meet the demands of the market and
customers. We will continue to own the majority of IP in our value
chain.
Our third strategy has been to improve the efficiencies of our
business in every possible way. We have been extremely successful
in delivering the GBP2m reduction on all costs year-on-year
promised last year. We have continued to focus on this and have
implemented a further GBP1.5m of annualised cost reductions at the
end of the period. We will continue to seek efficiencies as we go
forward. The next phase of these efficiencies will be as a result
of investment in new lower cost hardware devices and, provided
volumes increase as expected, in improved manufacturing and test
equipment.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the six
months to 30 September 2019
Six months Six months Year to
to 30 September to 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 3 8,867 8,839 19,145
Cost of sales (4,174) (4,995) (8,890)
------------------------ ------------------------ -----------------------
Gross profit 4,693 3,844 10,255
Other income 4 213 278 436
Administrative expenses excluding
exceptional
costs (6,435) (6,614) (12,101)
Exceptional
administrative
costs 7 (501) (323) (1,930)
------------------------ -----------------------
Total administrative costs (6,936) (6,937) (14,031)
Operating loss (2,030) (2,815) (3,340)
Finance income 3 6 10
Finance costs 8 (170) (117) (233)
Loss before taxation (2,197) (2,926) (3,563)
Income tax 410 743 1,057
Loss for the period (1,787) (2,183) (2,506)
Other Comprehensive
Income
Items that may be subsequently reclassified to profit
or loss:
Exchange differences on
translation of
foreign operations 1 (3) (5)
------------------------ ------------------------ -----------------------
Total other
comprehensive
income 1 (3) (5)
------------------------ ------------------------ -----------------------
Total Comprehensive Loss
for
the period attributable
to
owners of the parent 5 (1,786) (2,186) (2,511)
------------------------ ------------------------ -----------------------
Adjusted operating loss
before
tax 6 (1,583) (2,454) (1,452)
------------------------- ------ ------------------------ ------------------------ -----------------------
Loss before taxation (2,197) (2,926) (3,563)
Exceptional
administrative
costs 501 323 1,930
IFRS2 Share based
payments
charge 113 149 181
------------------------- ------ ------------------------ ------------------------ -----------------------
Earnings per ordinary share (pence) attributable to owners of the Parent
Basic 9 (3.57) (6.08) (6.20)
Diluted 9 (3.57) (6.08) (6.20)
Adjusted basic loss per
share
(pence) 9 (2.53) (4.94) (1.89)
Adjusted diluted loss per
share (pence) 9 (2.53) (4.94) (1.89)
-------------------------- ------ ------------------------ ------------------------ -----------------------
The results relate to continuing
operations.
Unaudited Consolidated Statement of Changes in Equity for the six months
to 30 September 2019
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
2018 359 11,750 1,138 208 (4) 7,929 21,380
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Comprehensive
income
Loss for the
period - - - - - (2,183) (2,183)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - (3) - - (3)
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Total
comprehensive
income - - - (3) - (2,183) (2,186)
Transactions
with owners
Shares issued 2 50 - - - - 52
IFRS 2
Share-based
payments - - - - - 149 149
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Transactions
with owners 2 50 - - - 149 201
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Balance as at
30 Sept
2018 361 11,800 1,138 205 (4) 5,895 19,395
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Comprehensive
income
Loss for the
period - - - - - (323) (323)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - (2) - - (2)
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Total
comprehensive
income - - - (2) - (323) (325)
Transactions
with owners
Shares issued 139 2,891 - - - - 3,030
IFRS2
Share-based
payments - - - - - 32 32
Tax recognised
directly
in equity - - - - - (38) (38)
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Transactions
with owners 139 2,891 - - - (6) 3,024
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Balance as at
31 March
2019 500 14,691 1,138 203 (4) 5,566 22,094
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Comprehensive
income
Loss for the
period - - - - - (1,787) (1,787)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 1 - - 1
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Total
comprehensive
income - - - 1 - (1,787) (1,786)
Transactions
with owners
Shares issued - - - - - - -
IFRS2 Share
based
payments - - - - - 113 113
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Transactions
with owners - - - - - 113 113
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Balance as at
30 Sept
2019 500 14,691 1,138 204 (4) 3,892 20,421
-------- ------------------ -------------- ------------------- --------- ------------ ---------
Unaudited Consolidated Statement of Financial Position as at 30 September
2019
As at 30 As at 30 As at 31
September September March
2019 2018 2019
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 10 21,490 20,282 21,165
Plant, property and equipment 13 3,636 1,823 1,432
Deferred income tax asset 39 122 -
Amounts receivable under finance
leases 65 238 139
----------- ----------- ---------
25,230 22,465 22,736
----------- ----------- ---------
Current assets
Inventories 2,119 2,529 2,736
Trade and other receivables 6,710 6,789 8,345
Corporation tax receivable 1,320 576 1,050
Cash and cash equivalents 692 1,995 1,205
----------- ----------- ---------
10,841 11,889 13,336
Current liabilities
Trade and other payables (5,750) (6,604) (6,307)
Borrowings 13 (1,652) (1,221) (1,237)
Provisions (26) - (27)
----------- ----------- ---------
(7,428) (7,825) (7,571)
Current assets less current
liabilities 3,413 4,064 5,765
----------- ----------- ---------
Total assets less current
liabilities 28,643 26,529 28,501
----------- ----------- ---------
Non-current liabilities
Trade and other payables (630) (630) (607)
Borrowings 13 (7,455) (6,504) (5,597)
Provisions (137) - (115)
Deferred income tax liability - - (88)
----------- ----------- ---------
(8,222) (7,134) (6,407)
----------- ----------- ---------
Net assets 20,421 19,395 22,094
----------- ----------- ---------
Equity
Share capital 11 500 361 500
Share premium 14,691 11,800 14,691
Merger reserve 1,138 1,138 1,138
Translation reserve 204 205 203
Treasury reserve (4) (4) (4)
Retained earnings 3,892 5,895 5,566
----------- ----------- ---------
Total equity attributable to owners
of the parent 20,421 19,395 22,094
----------- ----------- ---------
Unaudited Consolidated Cash Flow Statement for the six months to 30 September
2019
Six months Six months Year to
to to
30 September 30 September 31 March
2019 2018 2019
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net cash generated from operating
activities 12 1,432 (421) (1,752)
------------- ------------- ---------
Cashflows from investing activities
Purchases of property, plant
and equipment - (2) (103)
Purchases of software (1) (4) (158)
Proceeds from sale of property - - 495
Capitalised Development costs (1,488) (1,713) (3,413)
------------- ------------- ---------
Net cash used in investing
activities (1,489) (1,719) (3,179)
------------- ------------- ---------
Cashflows from financing activities
Issue of new shares - 52 3,082
New bank loan 500 1,350 2,000
Repayment of bank loans (505) (537) (2,026)
Repayment of obligations under hire purchase
agreements (281) (85) (187)
Interest paid (170) (117) (205)
------------- ------------- ---------
Net cash generated from financing
activities (456) 663 2,664
------------- ------------- ---------
Net decrease in cash and cash
equivalents (513) (1,477) (2,267)
Cash and cash equivalents at beginning
of period 1,205 3,472 3,472
Cash and cash equivalents at
end of period 692 1,995 1,205
------------- ------------- ---------
Notes To The Unaudited Consolidated Financial Statements
1. Basis of preparation
The Group's interim results for the 6 months to 30 September 2019 (prior
year 30 September 2018) were approved by the Board of Directors on 6
December 2019.
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 2019, except for the adoption
of IFRS 16 (Leases) for the first time for the interim reporting period
commencing 1 April 2019. The Group adopted IFRS16 on a modified retrospective
basis, this is disclosed in note 13. 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 of 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 2019 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 2019 Annual Report, described as follows, also remain
relevant to the rest of the financial year: Significant operational system
failure; Cyber-attack and data security; Brexit and a deteriorating economic
climate; Operating in a fast-moving technology industry where we will
always be at risk from new products; Adverse mobile network changes;
Attracting and maintaining high-quality employees; Access to long term
and working capital; Electronic supply chain under constraint. These
are detailed on pages 20 to 21 of the 2019 Annual Report, a copy of which
is available on the Group's website at www.trakm8.com.
3. Segmental Analysis
The chief operating decision maker ("CODM") is identified as the Board.
It continued 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 of the Group's revenue, expenses, results,
assets and liabilities are in respect of one Integrated Telematics Technology
segment, Solutions. Solutions represents the sale of the Group's full
vehicle telematics and optimisation services, engineering services, professional
services and mapping solutions to customers.
4. Other income
Six months Six months Year to
to to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Grant income 213 278 449
R&D tax credit - - 5
R&D tax credit adjustment in respect of
prior periods - - (18)
------------- ------------- ---------
213 278 436
------------- ------------- ---------
5. 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
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss attributable to the owners of the
parent (1,786) (2,186) (2,511)
------------- ------------- ---------
6. Adjusted loss before
tax
Adjusted Loss Before Tax is monitored by the Board and measured as follows:
Loss Before Tax (2,197) (2,926) (3,563)
Exceptional administrative
costs 501 323 1,930
Share based payments* 113 149 181
------------- ------------- ---------
Adjusted loss before
tax (1,583) (2,454) (1,452)
------------- ------------- ---------
*Number restated for six months to 30 September 2018 from GBP147,000 to
GBP149,000 as a result of a rounding adjustment.
7. Exceptional
costs
Six months Six months Year to
to to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Acquisition costs 41 37 102
Integration and restructuring
costs 227 7 707
Iranian bad debt - 279 293
New product component
refit costs 233 - 453
Exceptional communication correction costs - - 375
------------- ------------- ---------
501 323 1,930
------------- ------------- ---------
The acquisition costs incurred in 2020 and 2019 relate to non-underlying
charges under two separate agreements linked to the acquisition in 2017.
The costs incurred are directly linked to the acquisition and not as part
of the underlying business. One agreement terminated on 31 July 2019,
and the second agreement terminated on 31 March 2019.
The integration and restructuring costs in the current year relate to
an ongoing project to streamline and rationalise the operations of the
business.
The New product component refit costs relate to re-visit and material
costs that have been incurred as we complete the project to remedy the
issues that arose and were fixed in the previous financial year relating
to significant component and software issues on a recently launched product.
Detailed explanation of prior year exceptional costs are detailed on
page 58 of the 2019 Annual Report, a copy of which is available on the
Group's website at www.trakm8.com.
8. Finance costs
Six months Six months Year to
to to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Interest on bank
loans 106 88 172
Amortisation of debts
issue costs 14 14 28
Interest on Hire Purchase and similar agreements 50 15 33
------------- ------------- ---------
170 117 233
------------- ------------- ---------
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
to to Year to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
Loss the year after taxation (1,787) (2,183) (2,506)
Exceptional administrative
costs 501 323 1,930
Share based payments 113 149 181
Tax effect of adjustments (95) (61) (367)
Adjusted loss after taxation (1,268) (1,772) (762)
----------------- ------------- ------------
No. No. No.
'000 '000 '000
Number of Ordinary shares
of 1p each 50,004 36,073 50,004
Basic weighted average number of Ordinary
shares of 1p each 50,004 35,921 40,397
Diluted weighted average number of Ordinary
shares of 1p each 50,004 35,921 40,397
----------------- ------------- ------------
Basic loss per share (3.57p) (6.08p) (6.20p)
Diluted loss per
share (3.57p) (6.08p) (6.20p)
Adjust for effects
of:
Exceptional costs 0.81p 0.73p 3.87p
Share based payments 0.23p 0.41p 0.45p
Adjusted loss earnings
per share (2.53p) (4.94p) (1.89p)
Adjusted diluted loss per share (2.53p) (4.94p) (1.89p)
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
2018 10,417 1,920 100 10,621 1,875 24,933
Additions - Internal
development - - - 1,422 4 1,426
Additions - External
purchases - - - 291 - 291
Disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2018 10,417 1,920 100 12,334 1,879 26,650
Additions - Internal
development - - - 1,422 140 1,562
Additions - External
purchases - - - 278 14 292
Disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 31 March
2019 10,417 1,920 100 14,034 2,033 28,504
Additions - Internal
development - - - 1,378 - 1,378
Additions - External
purchases - - - 110 23 133
Disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 30 September 2019 10,417 1,920 100 15,522 2,056 30,015
--------- ------------- --------------- ------------ --------- --------
Amortisation
As at 1 April 2018 - 1,788 56 3,101 528 5,473
Charge for period - 30 17 730 118 895
Depreciation on
disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 30 September 2018 - 1,818 73 3,831 646 6,368
Charge for period - 31 16 801 123 971
Depreciation on
disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 31 March
2019 - 1,849 89 4,632 769 7,339
Charge for period - 30 11 1,007 138 1,186
Depreciation on
disposals - - - - - -
--------- ------------- --------------- ------------ --------- --------
As at 30 September 2019 - 1,879 100 5,639 907 8,525
--------- ------------- --------------- ------------ --------- --------
Net book amount
--------- ------------- --------------- ------------ --------- --------
As at 30 September 2019 10,417 41 - 9,883 1,149 21,490
--------- ------------- --------------- ------------ --------- --------
As at 31 March
2019 10,417 71 11 9,402 1,264 21,165
--------- ------------- --------------- ------------ --------- --------
As at 30 September
2018 10,417 102 27 8,503 1,233 20,282
--------- ------------- --------------- ------------ --------- --------
As at 31 March
2018 10,417 132 44 7,520 1,347 19,460
--------- ------------- --------------- ------------ --------- --------
11. Share
Capital
As at 30 September As at 30 September As at 31 March
2019 2018 2019
---------------------------- ---------------------------- ------------------------
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 36,073 361 50,004 500
Movement in
share capital: GBP'000
As at 1 April
2018 359
New shares
issued 2
---------
As at 30
September
2018 361
New shares
issued 139
---------
As at 31 March
2019 500
New shares
issued -
---------
As at 30
September
2019 500
---------
The Company currently holds 29,000 Ordinary shares in treasury representing
0.06% (2018: 0.08%) of the Company's issued share capital. The number
of 1 pence Ordinary shares that the Company has in issue less the total
number of Treasury shares is 49,975,002.
12. Reconciliation of cash flows from operating activities
Six months Six months
to to Year to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss before taxation (2,197) (2,926) (3,563)
Adjustments
for:
Depreciation 334 157 313
Loss on disposal of fixed
assets - - (106)
Amortisation of intangible
assets 1,186 895 1,866
Interest
received (3) (6) -
Bank and other interest
charges 170 117 223
Share based
payments 113 149 181
---------------------------- ---------------------------- ---------
Operating cashflows before
movement in working
capital (397) (1,614) (1,086)
Movement in
inventories 617 27 (180)
Movement in trade and other
receivables 1,750 4,261 1,732
Movement in trade and other
payables (573) (3,985) (3,214)
Movement in
provisions 21 (85) 1
Cash generated from
operations 1,418 (1,396) (2,747)
Interest
received 3 6 10
Income taxes
received 11 969 985
Net cashflows from operating
activities 1,432 (421) (1,752)
---------------------------- ---------------------------- ---------
13. IFRS 16 Leases
Previously leases of property, plant and equipment were classified as
either finance or operating leases under IAS 17. Payments made under
operating leases (net of any incentives received from the lessor) were
charged to profit or loss on a straight-line basis over the period of
the lease.
Under IFRS 16 which the Group has adopted effective for the period starting
1 April 2019, leases are recognised as a right-of-use asset and a corresponding
liability at the date at which the leased asset is available for use
by the Group. Each lease payment is allocated between the liability and
the finance cost. The finance cost is charged to profit and loss over
the lease period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period. The right-of-use
asset is depreciated over the shorter of the asset's useful life and
the lease term on a straight-line basis.
The Group has applied IFRS 16 on a modified retrospective basis with
practical expedients from the date of initial application (1 April 2019).
In applying IFRS 16 for the first time, the Group has used the following
practical expedients permitted by the standard:
-- The use of a single discount rate to a portfolio of leases with reasonably
similar characteristics.
-- The accounting for short term operating leases under IAS 17, for
leases with a remaining term of less than twelve months as at the initial
application date.
-- The use of hindsight in determining the lease term where the contract
contains options to extend or terminate the lease.
-- The application of IFRS 16 to only those operating leases accounted
for under IAS 17 as at the initial application date.
Upon transition, a lease liability has been recognised based on future
lease payments discounted at an appropriate borrowing rate. Additionally,
a right of use asset has been recognised along with a related lease liability.
Within the income statement, the operating lease charge (GBP219,000)
has been replaced by depreciation (GBP209,000) and interest expense (GBP29,000).
This has resulted in a decrease in administrative expenses and an increase
in finance costs.
Six months Six months
to to Year to
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment - consistent
with 2018 presentation and accounting policy 1,334 1,823 1,432
Changes due to new accounting policy -
IFRS 16 - Right of use asset 2,302 - -
Property, plant and equipment - consistent
with 2019 presentation and accounting policy 3,636 1,823 1,432
------------- ------------- ---------
Current liabilities
Borrowings - consistent with 2018 presentation
and accounting policy (1,242) (1,221) (1,237)
Changes due to new accounting policy -
IFRS 16 - Short term leases (410) - -
Borrowings - consistent with 2019 presentation
and accounting policy (1,652) (1,221) (1,237)
------------- ------------- ---------
13. IFRS 16 Leases (continued)
Non-current liabilities
Borrowings - consistent with 2018 presentation
and accounting policy (5,545) (6,504) (5,597)
Changes due to new accounting policy -
IFRS 16 - Long term leases (1,910) - -
Borrowings - consistent with 2019 presentation
and accounting policy (7,455) (6,504) (5,597)
------------- ------------- ---------
The adjustments above reflect the impact of IFRS 16 on the property leases
for the Shaftesbury offices, Coleshill offices, Czech offices and leased
cars. All new leases will be treated accordingly. A discount rate of
2.45% has been applied.
14. Further Copies
This statement, full text of the Stock Exchange announcement and the
results presentation can be found on the Group's website www.trakm8.com
and also from the registered office of Trakm8 Holdings PLC. The address
of the registered office is: Roman Way, Roman Park, Coleshill, North
Warwickshire, B46 1HG.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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
IR BRBDDUBGBGCL
(END) Dow Jones Newswires
December 09, 2019 02:00 ET (07:00 GMT)
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