Since the Group's trading update announced in September 2018 it has become clear that the improved H2 financial performance, driven by continued growth in the telematics business, will not materialise as the Group anticipated. Continuing delays in decisions by customers is preventing the return to the usual levels of success in Fleet and Optimisation, a move to a rental model in the automotive space, and the loss, due to sanctions, of a multi-million-pound contract for the supply of Insurance solutions into Iran, has meant that revenue for the current financial year is now expected to be 20-25% below the FY2018 outcome, and 10-15% below on a like-for-like basis.

OUCH! I did not see any of this coming and many can say John Watkins on his September interviews and AGM statement was borderline fraudulently when he presented a much different picture. The market hated the surprise and punished the company exceedingly, bringing it down to levels seen in micro-caps with no sales, profits or  history of success. RSI is now 11 and the market cap is £8m...in any sane criteria an insane valuation for a company that is market leading in telematics with a huge client base of blue chip customers and contracts across the world.

IMO a huge bounce is on the cards here for Trakm8 Holdings (LON:TRAK), the market panicked wildly for a 20% drop in revenues, which is just a blip. We already knew they would be down on revenues and profits for H1 and it was the unexpected loss of the Iran contract that caused the profit warning. (Thank Trump's sanctions for this when all of EU agreed to keep working with Iran)

This is a company that has the third biggest market share in telematics in the UK and a notable and growing presence in Europe and Australia. It has undoubtedly the best telematics technology in the planet!! And some of its clients are names that any rival would kill to have:

AA / ANWB and 4 more road clubs in the EU (OAMTC Austria going live in February)
Direct Line
Lexis Nexis
Bt Fleet / EE
Intelematics
St Gobain
Scottish Power
Iceland
EON



Lexis Nexis is about to start massive volumes, AA is already offering the Car Genie with every renewal and might make it mandatory for its 3.3m customers while also starts…

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