Biggest contract win in company's history

Trakm8 Holdings (LON:TRAK) today announced its biggest contract to this day, providing Intelematics Australia with data, automotive diagnostics services and 4G devices (first 4G type in Australia) in the amount of 40,000 devices.

Intelematics Australia is also a majority shareholder in Intelematics Europe, a Joint Venture of the biggest road clubs in Europe. So within 1 year Trakm8 has become the exclusive supplier of telematics devices and data for the biggest Road Clubs in the EU and Australia.

During the half year, Trakm8 Holdings (LON:TRAK) had 70,000 Fleet devices and even though exact fleet devices were not disclosed with the end year TU, my guess is that it was sitting around 75,000 Fleet devices by year end.

This contract represents a 57% increase on Fleet devices: the single most important criterion to judge a telematics company and the one used by Verizon and others when looking for the next company to acquire.

It is also the number that drives recurring revenue and as the 40k devices are in AUD, Trakm8's sales mix becomes much more diversified and won't be as sensitive to GBP movements in the future as it was in the past.

This comes at a moment when the market has really ignored Trakm8 Holdings (LON:TRAK) and share price is at 3 year low while the company is at literally its best shape and about to have its best year ever on all fronts.

In my opinion (and everyone should do their own research) this is the best time to get an entry here and benefit from the upside. My own target is 200p for 2018 and back to previous highs for next year as the market realizes the potential.

Additional side projects

The company has also started to explore pothole detection algorithms in conjunction with the Council of York by using its highly profitable RoadHawk 600 cameras. If this project succeeds, the results could be duplicated in hundreds of councils domestically and abroad. So it's not a one trick pony but multiple other projects are running at the same time.

Source: www.york.gov.uk/downloads/file/15613/2018_t-trig_bid_document_for_purgamentum_scheme


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