Trakm8 Holdings PLC Trading Statement & Contract Win (1094D)
April 25 2013 - 1:00AM
UK Regulatory
TIDMTRAK
RNS Number : 1094D
Trakm8 Holdings PLC
25 April 2013
25 April 2013
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Trading Update
&
Visilink Agreement
Trakm8, the AIM-listed designer and developer of GPRS based
hardware and software for the vehicle placement and security
market, is pleased to provide an update on trading for the year
ended 31 March 2013, and in addition announces the signing of an
agreement with Visilink Ltd.
Trading Update
In November 2012, the Group announced a strategic investment in
sales and engineering. This expansion of the headcount has been
successfully undertaken with a number of high quality new staff
hired. The Group is pleased to report that it has remained
profitable for the full year despite these increased staff costs,
the benefits of which are now expected to be realised in the second
half of this new financial year and more fully in future years.
Revenues during the year to 31 March 2013 were slightly down on the
previous year, mainly due to the timing of major new contracts that
missed this financial year but that should positively impact the
next. Today we have also announced an agreement relating to new
Trakm8 customers previously serviced by Visilink (for further
information see below).
Gross margins have continued to improve on the back of
increasing recurring revenues. This performance is particularly
pleasing in the light of difficult market conditions and economic
uncertainty. In addition, the Group has significantly improved its
already strong cash balances to GBP1.4m at year end.
The Group has launched several new solutions this year including
the eco(N) driver behaviour package, Dynamics, a routing package,
and Prime, a low cost track and trace package.
The Group expects to announce its preliminary results for the
year ended 31 March 2013 in early July 2013.
Visilink Product Transfer Agreement
Trakm8 is pleased to announce that it has signed a product
transfer agreement with Cheshire based Telematics Service Provider,
Visilink Ltd. Visilink evolved from the telematics company Eagle-i.
Under the agreement Visilink's entire customer base has been
offered the opportunity to transfer to Trakm8's Swift telematics
solution. This has already generated additional units reporting
onto the Trakm8 Swift solution and provided upgrade opportunities
with a number of new customers.
The agreement has been established to resolve Visilink
customers' inability to upgrade their existing telematics software.
Trakm8's latest Swift solution provides a number of additional
features and enhancements to their previous system. The transition
to Trakm8 has been made a seamless change as it does not require
any hardware changes and very little or no down time. Furthermore,
many customers are taking the opportunity to look at the Trakm8
eco(N) solution, which does require a hardware change but will
provide the additional benefit of fuel savings and driver behaviour
monitoring opportunities.
John Watkins, CEO of Trakm8, commented:
"Trakm8 is delighted to offer Visilink customers the opportunity
to transfer to Trakm8's solutions, allowing us to broaden our
footprint in the UK. We will do everything possible to ensure a
smooth transition and a productive future cooperation with
customers that transition.
"Having established a strong financial base we are embarking on
a period of significant expansion. The Board is confident that this
investment strategy will deliver increased revenues and shareholder
value in the near term."
Ends
For further information please contact:
Trakm8 Holdings plc
John Watkins, Chief Executive Officer
James Hedges, Finance Director 01747 858444
finnCap 020 7220 0500
Ed Frisby / Christopher Raggett -
corporate finance
Simon Starr - corporate broking
MHP Communications 020 3128 8100
Reg Hoare / Vicky Watkins
This information is provided by RNS
The company news service from the London Stock Exchange
END
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