Trading Statement

RNS Number : 0479L

Trakm8 Holdings PLC

23 April 2015

 



23 April 2015

TRAKM8 HOLDINGS PLC

("Trakm8" or the "Group")

Year End Trading Update

Trakm8, the AIM-listed telematics and data provider to the global market place, is pleased to provide a positive update on trading for its financial year ended 31st March 2015.

Highlights

·     Group revenues up c.95% year on year

·     Annualised recurring revenue up 60% to £7.3m

·     Trakm8 orders received up 38% year on year (like for like basis)

·     Trakm8 revenues up 73% year on year (like for like basis)

·     Strong traction in new contract wins announced in recent months

Trading

Trading for the year ended 31 March 2015 has been in line with the Board's expectations, with strong growth in revenues and profits compared to the prior year. Revenue for the new financial year ending 31 March 2016 is now expected to be ahead of previous management expectations, with profits comfortably ahead of previous management expectations.

Like for like orders (not including BOX business as this was owned for just five months of last year) received during the period were 38% higher than the previous year. Revenues on a like for like basis were 73% higher than last year.

The result at BOX was positively impacted by the integration of £1.8m manufacturing build of telematics devices for Trakm8. This followed the introduction of the T10 and the increased capacity at BOX with a new surface mount pcb line.

When we announced the half year results in December 2014, we reported a strong pipeline of opportunities under trial. It is pleasing to note that we have secured a number of these, which have been announced in recent months. We continue to maintain a strong stream of new opportunities some of which we would expect to convert over the coming months.

We achieved the landmark figure of exceeding 100,000 units reporting to our servers during the year and just over 96,000 units were built and shipped in the financial year as a whole. As a result the recurring revenues increased strongly with annualised March figures 60% up on the previous year at £7.3m

The Group has continued to expand its internal resources in most functions but particularly in design, development and data analysis. Sales and marketing has been strengthened along with the customer support team. Manufacturing investment for increased capacity and quality has been continuing. Net cash at 31 March 2015 stood at £0.6m.

Outlook

The outlook for the new financial year continues to be positive. Recent contract wins and the continuous increase in devices reporting to our servers means that the Group expects to achieve another strong trading performance in the new financial year. The Board now expect revenue for the new financial year ending 31 March 2016 to be ahead of its previous expectations, with profits also comfortably ahead of previous expectations.

Notice of Results

The Group expects to announce its final results for the year ended 31 March 2015 in early July 2015.

John Watkins, Executive Chairman of Trakm8 commented:

"Trakm8 has started to deliver on its potential, with excellent products and solutions, a very strong growth in the installed base, and a widening of the customer base achieved during the last financial year. The investment in resources to capitalise on the opportunities in the M2M and Big Data space is paying off and we expect to be able to continue the improvement in shareholder value."

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For further information please contact:

Trakm8 Holdings plc	01747 858444
John Watkins, Executive Chairman
James Hedges, Finance Director
MHP Communications	020 3128 8100
Reg Hoare / Jade Neal
finnCap	020 7220 0500
Ed Frisby / Christopher Raggett - corporate finance Jo Weaving - corporate broking

About Trakm8

Trakm8, the M2M telematics company using Big Data analytics to improve driver behaviour is a leading technology designer, developer and manufacturer of telematics products and solutions.

The Group, based in Shaftesbury, Dorset, distributes its hardware and software through a network of distributors worldwide. In addition the Group provides vehicle monitoring and tracking services direct to the B2B market. Trakm8's IP owned products and services allow vehicles and drivers to be monitored, allowing organisations to manage deliveries and services, or track stolen vehicles down to five metres.

Recently Trakm8 has developed the T10 product range, which includes a self-installed telematics device. The Group's services also include a driver behaviour management solution that reduces fuel consumption by 10% or more and reduces the risk of accidents. This is complemented by a logistics routing and scheduling package, integrated tachograph data reporting facilities, and the ability to read vehicle DTCs (Diagnostic Trouble Codes) reducing serviceability downtime. The Group's customers include the AA, St Gobain, EON, Direct Line Group, & 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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