Trading Update

RNS Number : 9117O

Trakm8 Holdings PLC

04 February 2019

 

04 February 2019

Trakm8 Holdings plc

('Trakm8', the 'Group' or the 'Company')

Trading Update

Reduced cost base and strategic partnerships drive long-term financial growth

Trakm8, a leading telematics and data supplier to global markets, confirms that for the third quarter of the financial year ending 31^st March 2019, the Group has grown orders in challenging markets and implemented a rigorous cost saving programme.

During the quarter, Trakm8 saw a marked improvement in order volumes, which were 10% greater than the run rate of the first half, and shipments restarted to the Group's major automotive customer.  As Trakm8 moves into the final quarter of FY2019 the Board expects to improve the trend of growing new orders and in turn shipments.  During January orders amounting to circa 30,000 units were received from a wide range of new and existing customers. 

The revamped Fleet sales team has delivered a strong start to the final quarter with a number of contract wins already secured, however certain Fleet order opportunities continue to be delayed, rather than lost, because of the ongoing Brexit uncertainty.  The Directors anticipate that while full year revenues will now be 25% to 35%  below last year, the second half will be profitable, and, provided the mix of revenue is as expected, the loss for the year will remain as previously anticipated.

The long-term pipeline of opportunities has also been enhanced by its strategic partnership with Microlise Group Holdings Limited ("Microlise") in December 2018.  Following the investment into the Company by Microlise, Trakm8 and Microlise are evaluating several work streams to maximise the potential of working together more closely, whilst at the same time maintaining both companies' full independence.  Whilst it may take some time to deliver substantial positive results from this activity, Trakm8 is optimistic of the long-term benefits that this partnership will bring to both parties in the future.

Another near-term strategic priority for Trakm8 has been to continue to reduce operating costs.  During the last quarter the Group has implemented approximately £2 million of annualised savings.  The bulk of these savings will be fully effective for the start of the new financial year commencing 1^st April 2019.  The Board is confident that this significantly reduced cost base and the increased revenue run rate will result in a measurable improvement in performance for financial year ending 31^st March 2020.

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For further information:

Trakm8 Holdings plc
John Watkins, Executive Chairman	Tel: [phone]
Jon Furber, Finance Director	www.trakm8.com
Arden Partners plc (Nominated Adviser & Broker)	Tel: [phone]
Paul Shackleton / Alex Penney - Corporate Finance Simon Johnson - Corporate Broking	www.arden-partners.com

Media enquiries:

Buchanan
Victoria Hayns / Tilly Abraham	Tel: [phone]
[e-mail]	www.buchanan.uk.com

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 250,000 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

 

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