Acquisition and Directorate Change

RNS Number : 2379Q

Trakm8 Holdings PLC

16 June 2015

 

16 June 2015

TRAKM8 HOLDINGS PLC

("Trakm8" or the "Group")

Camera Product and Technology Acquisition

and

Directorate Change

Trakm8, the AIM-listedtelematics and data provider to the global market place,is pleased to announce it has acquired the business and assets of DCS Systems Ltd ("DCS") for a cash consideration of £3.3 million (the "Acquisition").

Acquisition

DCS specialises in the design and distribution of camera systems for the motor vehicle, bicycle and security markets. DCS trades under three main brands: RoadHawk, Dogcam and Lawmate.

The Acquisition is in line with Trakm8's strategy of augmenting its organic growth with selective acquisitions that expand its telematics offering to both insurance and fleet customers. Cameras are being increasingly used in a wide range of applications, including a significant demand for forward facing vehicle cameras to record driving incidents and to mitigate the risk from 'crash for cash' accidents. Trakm8 has an existing relationship with DCS, supplying some Trakm8 customers with its RoadHawk cameras.

DCS's last unaudited accounts for its financial year ending 30 April 2015 reported revenues of £2.8 million and profit before tax of £0.6 million. Trakm8 funded the Acquisition from its existing cash and bank facilities. Trakm8 has also obtained a further debt facility from HSBC Bank of an additional £2 million taking the total debt facility to £5.7 million, of which £3.7 million is now drawn down following the Acquisition.  DCS will continue to be based in Bodmin, Cornwall and has six staff.

The Acquisition is expected to be immediately earnings enhancing.

Directorate change

Reflecting the strong growth of the Group, Trakm8 is also pleased to announce a strengthening of the Board of Directors with three new appointments. These are expected to enhance its corporate governance and ensure it has the management team to implement its growth plans and integrate acquisitions successfully.

Bill Duffy is joining the Board as an additional independent Non-Executive Director. Bill has considerable commercial experience having been CEO of Andrew Page, Halfords Autocentres and a number of other leading automotive aftermarket companies.  He has also been a consultant to the Board over the past 12 months.

In addition Trakm8 is appointing two executives to be Directors of the Group: Sean Morris, as Group Engineering Director and Mark Watkins as Group Operations Director. Sean joined the Group six months ago following senior engineering positions at Continental UK, RAC and Aston Martin. Mark joined the Group 15 months ago as the Managing Director of BOX Telematics following a successful career in IT and operations at Continental UK and Ford Motor Co.

John Watkins, Executive Chairman of Trakm8 comments: 

"The acquisition of DCS marks another significant milestone in Trakm8's growth strategy and reflects the growing demand from our fleet and insurance customers for camera applications. We plan to deepen the integration of the camera technology into our telematics solutions for both our fleet and insurance clients.

"Video data is increasingly used to monitor behaviour and to replay outcomes. The increase in the richness of the data generated by our telematics solutions will continue the trend of the increasing value for money in our propositions."

The following information regarding William Kenneth Duffy's (aged 56) appointment is required to be disclosed under Schedule 2g of the AIM Rules for Companies:

Other directorships held:

Current:	Within the last five years:
Econnect Cars Limited Pangburn Consultants Limited	Andrew Page Limited Camberley Auto Factors Limited Halfords Autocentres Limited Halfords Autocentres Acquisitions Limited Halfords Autocentres Developments Limited Halfords Autocentres Funding Limited Halfords Autocentres Holdings Limited NW Autocentres Limited Oldco 1 Limited Parts Direct Limited Stop n'Steer Limited

Mr Duffy owns 20,000 Ordinary Shares in the capital of Trakm8.

The following information regarding Sean Anthony Morris' (aged 50) appointment is required to be disclosed under Schedule 2g of the AIM Rules for Companies:

Other directorships held:

Current:	Within the last five years:
n/a	n/a

Mr Morris does not own any Ordinary Shares in the capital of Trakm8.

The following information regarding Mark Richard Watkins' (aged 34) appointment is required to be disclosed under Schedule 2g of the AIM Rules for Companies:

Other directorships held:

Current:	Within the last five years:
Box Telematics Ltd	Watnets

Mr Watkins owns 250,128 Ordinary Shares in the capital of Trakm8.

There are no further disclosures to be made under Schedule 2g of the AIM Rules for Companies.

-Ends-

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 Joanna 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 have developed the T10 product range, which includes a self-install telematics device. The Group's services also include driver behaviour management solutions that can reduce fuel consumption by 10% or more, reduce risk of accidents, logistics routing & scheduling packages, and tachograph data reporting. The Group's customers include Direct Line Group, Eon, the AA, Fujitsu and Kubota.

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005.

 

END

 

 

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