Morning folks,

The assortment of updates today looks like this:



Trakm8 Holdings (LON:TRAK)

  • Share price: 18.5p (-18%)
  • No. of shares: 50 million
  • Market cap: £9 million

Final Results

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, announces its final results for the year ended 31 March 2019 (FY-2019).

I've never invested in Trakm8 Holdings (LON:TRAK) or in the "good" telematics company, Quartix Holdings (LON:QTX). But I've analysed both of them in some detail before - see my review of Trakm8's results last year, when the share price was 94p.

Trakm8 shares once enjoyed an enormous valuation, at 400p. But the reality of poor cash generation and volatile performance has squeezed the life out of the shares. It is now below our £10 million market cap requirement for coverage, so this could be the last time I look at it.

Today's results are predictably bad: everything is going the wrong way. The company is loss-making and net debt has increased to £5.6 million.

What's gone wrong?

"Sales related challenges and contract delays" - the products aren't required urgently enough by customers, in other words.

Outlook

Trakm8 is looking for a low double digit (i.e. 10%-12%) increase in revenue and "small adjusted profitability" in the current financial year.

It again says that great things are expected in the second half of the year.

FY 2020 is "more significantly second half loaded than ideal", due to the launch of the AA Smart Breakdown service and some contract wins.

Jam is always just around the corner! Investors should note that H2 last year produced no jam, despite the company's expectations.

The Chairman acknowledges that previous expectations were set too high, and promises that things will be different this time around:

Given the disappointing failure to predict the outcome…

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