TIDMTRAK
RNS Number : 7964K
Trakm8 Holdings PLC
13 April 2018
For immediate release 13 April 2018
Trakm8 Holdings plc
('Trakm8' or the 'Group')
Full Year Trading Update
Notice of Results
Trakm8 Holdings plc (AIM:TRAK), a leading telematics and data
supplier to global markets, is pleased to provide the following
trading update for its financial year ended 31 March 2018 (the
'Period').
Trading
During the Period, the Group achieved 26% growth in its core
Solutions business to GBP26.9 million which has driven 13%
year-on-year headline revenue growth to over GBP30 million. This
has been achieved despite a year-on-year reduction of GBP2.2
million following the Group fully exiting the contract electronic
manufacturing business to focus on the manufacture of hardware
devices for the fleet, insurance and automotive markets. The Board
expects that 2018/19 will be the final period of this year-on-year
decline in product revenues, which will be approximately GBP2.0
million. The Group has now ceased all activities outside of the
provision of Telematics Services. The number of connections in the
Period increased by 31% to 251,000 from 191,000. Recurring revenue
during the Period increased by 11% to GBP10.9 million and year-end
net debt reduced by GBP0.5 million to GBP3.4 million (31 March
2017: GBP3.9 million).
The Group has continued to secure new contract wins and
extensions, including new contracts with a global vehicle leasing
company and Truline, part of the EVO Group of Companies, and an
expanded contract with Scottish Power respectively. These are in
addition to previously announced new contracts secured and contract
extensions.
Customer demand for the RoadHawk 600 4G integrated camera has
been better than anticipated with almost 3,000 devices already
installed. As outlined at the time of the interim results in
November 2017, the outcome for the full year was dependent on
existing customer contracts where there was a level of uncertainty
of end user demand. Although revenues from existing customer
contracts were lower than anticipated, recent order entry has been
strong. In addition to this, several new contract wins have moved
into the first quarter of the new financial year.
The Group's digital strategy, launched in November 2017, is
targeting the SME fleet market, a sector which Trakm8 has not
historically been focused on. The online sale of solutions has
gained good traction and is now showing potential to be a
significant contributor to Group revenues over the medium to long
term.
Recent product launches include several next generation hardware
devices which offer outstanding performance and competitiveness. To
meet the anticipated demand for these devices from existing and new
customers, the Group is planning to assemble these new hardware
devices with increased levels of automation.
Operational improvements
As previously announced, the Group achieved an annualised
operational cost reduction of over GBP1.5 million as the business
continued its major project to streamline its activities and during
the year closed the Group's offices in Livingston and Bodmin. The
activities undertaken in these locations have been absorbed within
the remainder of the Group's activities. These cost savings have
enabled the Group to deploy greater resources towards sales and
marketing, which is in line with its stated strategy.
Trakm8 recently completed a rationalisation and simplification
process of its legal entities to consolidate its trading
activities. Additionally, an ERP-wide implementation programme was
launched to migrate to a platform provided by Epicor, which the
Board believes will lead to further operational and reporting
improvements for the Group.
Outlook
The Board remains confident in Trakm8's future prospects and an
update on trading for the current financial year will be provided
in conjunction with the 2017/18 final results.
Notice of Results
The Group expects to announce its final results for the year
ended 31 March 2018 on Monday, 2 July 2018. An analyst briefing
given by John Watkins (Executive Chairman) and Jon Furber (Finance
Director), will be held at 09.30am on the day of the Final Results
at the offices of Buchanan (107 Cheapside, London EC2V 6DN).
John Watkins, Executive Chairman of Trakm8, commented:
"Following a strong performance in the first half of the current
financial year, I am pleased to report continued progress with
headline double digit revenue growth achieved despite our strategic
decision to exit from sub-contract manufacturing. Importantly,
underlying Solutions revenue increased by over 25% and we have
continued to focus on improving efficiencies in all aspects of our
business, whilst continuing to invest in engineering, sales and
marketing.
"It is also encouraging to note that the AA has commenced the
roll out to its private members of Car Genie, its connected car
product. This move by the AA has potential to considerably increase
the number of connections for Trakm8.
"Given the successful mix of new contract awards, increased
sales and marketing investment and robust demand from our existing
customers, the Board anticipates that we will maintain positive
momentum in revenue generation in our core Telematics Solutions
business as the market continues to be rich in opportunities. We
view the future of Trakm8 with much optimism."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
- Ends -
For further information:
Trakm8 Holdings plc
John Watkins, Executive Chairman Tel: +44 (0) 1747
858 444
Jon Furber, Finance Director www.trakm8.com
Arden Partners plc (Nominated Tel: +44 (0) 20 7614
Adviser & Broker) 5900
Paul Shackleton / Ruari McGirr www.arden-partners.com
/ Alex Penney
Media enquiries:
Buchanan
Henry Harrison-Topham / Chris Tel: +44 (0) 20 7466 5000
Lane / Tilly Abraham
Trakm8@buchanan.uk.com www.buchanan.uk.com
About Trakm8
Trakm8 is a UK based technology leader in fleet management,
insurance telematics, optimisation and dashboard camera systems.
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 telematics based solutions; these
score driver behaviour, monitor vehicle health and continuously
improve the security and operational efficiency of both private
drivers and company fleets.
The Group's product portfolio includes cameras (including the
recently launched integrated telematics camera), self-installed
telematics units and technology to eliminate distracted driving due
to mobile phones.
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, 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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