Trading Statement

RNS Number : 4838E

Trakm8 Holdings PLC

10 April 2014

 



10 April 2014

TRAKM8 HOLDINGS PLC

("Trakm8" or the "Group")

Year End Trading Update

Trakm8, the AIM-listed designer, developer and manufacturer of Telematics hardware and software for the vehicle placement and security market, is pleased to provide a positive update on trading for the recently enlarged Group, for its financial year ended 31 March 2014.

Highlights

-      Exceeded managements' expectations for the adjusted profit before tax for the year

-      Trakm8 orders up 46% year on year (like for like basis)

-      Trakm8 revenues up 13% year on year (like for like basis)

-      Net cash at £0.6m at 31 March 2014 - higher than anticipated

-      BOX Telematics Limited ("BOX") fully integrated for exciting year ahead

Trading

The Board now expects that the Group will exceed its previous expectations for adjusted profit before tax (pre Box acquisition costs) for the year ended 31 March 2014, when reported.  This is primarily due to elevated levels of increased margin Engineering Services revenues in the final quarter of the financial year.  These were very much associated with new projects that although beneficial for the results to 31 March 2014, will be predominantly delivered in the current financial year.

Like for like orders (not including the BOX business) received during the period were 46% higher than the previous year.  Revenues, on a like for like basis, were 13% higher than last year but the Group's revenues were below market expectations for two main reasons.  Firstly, the acquisition of BOX in October 2013, completed a month later than expected.  Secondly, the BOX operations were subject to considerable reorganisation and investment in preparation for the significant telematics contract with a UK insurance company, which was subsequently announced in January 2014.

Strong cash generation during the year also enabled the Group to exceed the anticipated year end cash position with net cash of £0.6m at year end, despite borrowing £2.5m by way of a new debt facility to fund the BOX acquisition.

Group operations and integration of BOX

BOX Telematics has now been fully integrated into the Group and has established the in-house manufacturing of the new T10 product line.  This new family of Telematics devices has increased functionality, at a reduced cost. The T10 self-install device opens a wide range of new opportunities for Trakm8 and the Directors believe it may be the smallest such device available on the market today.

The year under review has also seen a number of new fleet management solutions launched including Tachograph integration and Swift 6 - Trakm8's new next generation fleet management solution.

Outlook

The outlook for the current financial year is more positive than at any time in recent years.  Recent contract wins along with the continuous drive to secure more installed devices reporting to our servers means the Group expects to achieve an improved trading performance in the new financial year, in line with existing management expectations.

Notice of Results

The Group expects to announce its Final results for the year ended 31 March 2014 in early July 2014.

John Watkins, Executive Chairman of Trakm8, commented:

"We ended the year on a strong note, exceeding our expectations for profitability and cash.  Our strategy to considerably increase the investment in engineering and sales resources, with a view to delivering stronger growth in the medium term has proved successful.

"Having fully integrated BOX Telematics, we are now positioned to drive growth faster and to consider further acquisitions which will strengthen our leading position in the telematics market."

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 / Vicky Watkins
finnCap	020 7220 0500
Ed Frisby / Christopher Raggett - corporate finance Simon Starr - corporate broking

About Trakm8

Founded in 2002, Trakm8 is a leading technology designer, developer and manufacturer of telematics hardware and software to the safety, security and vehicle tracking markets.  The Group, which is 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.

Trakm8's services also include driver behavior management solutions that can reduce fuel consumption by 10% or more, logistics routing & scheduling packages, and tachograph data reporting.  The Group's growing installed based customers include Eon, St Gobain, the AA and Fujitsu.

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

www.trakm8.com 

 

END

 

 

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