Trakm8 Holdings (LON:TRAK) reported their H1 results today and as expected another loss followed but a few things were displaying the start of a turnaround that is taking place.
- Cost cuts across the entire company: headcount, factory, R&D led to substantial savings
- Cash generation massively improved from -400k last year to +1.4m now.
- AA customer committed to 45k units ordered within the next 12 months which is a substantial contract considering they have 150k devices now in Insurance & Automotive. Alstrad, ByMiles, LexisNexis all shipping now new devices and 2 more insurers to start in December and January. The Insurance side seems to have stabilized and start to grow soon.
- Fleet, where best margins are at, continues to rise nicely and new contracts are secured.
This looks to be the bottom to me, as evidenced also by the recent rise in anticipation of good news. If they finish the year profitably as announced today then that means the company is back on track towards profitability and from a much better position than they were before due to the new products they developed.
Rise in £ is also set to help them a lot in 2020.
I hold and although I had lost faith recently, I start to change my mind after the recent results. The format of the RNS and language used is finally at par with what it should have been, telling it as it is.
