This is a follow up to my previous article, covering new developments with £TRAK's progress.

This morning the company updated the market with an unexpected Trading Update, which I can only assume is the mark of the new CFO's (Jon Furber) way of running things from now on. The traditional September update was confined to a few words on progress without any numbers and the company started to provide a proper TU for H1, a month before the full Half Year results. I love the transparency here, it was a recurring complaint in the past that we had to wait too long to get an update on progress. But what did we find out?

Higher revenues, higher margins

Revenues continue to gain momentum, up 12% year on year to GBP14.74m (2016: GBP13.18m). This like-for-like increase represents a strong growth in the continuing business activities of 24%, taking into account a revenue reduction of GBP1.02m due to the planned exit from the lower margin CEM activities made during the period.

The key to take away from this is that this was not just an eye-watering rise in sales but that we'll squeeze a lot more ££ out of them as well. The CEM revenues were extremely low margin and have now been replaced with higher-margin own products.

The hidden gem: Out-performance on device numbers

217,000 units now reporting to our servers, an increase of 27,000 since the year end (2016: c.177,000). This growth of 14% is attributed to a 6% increase in Fleet Telematics of 4,000 to 70,000 units

Everyone's attention was focused on the 6% increase in our favorite part of devices, Fleet. Here the margins are not only extraordinary but also recurring until the client exits the contract, with attrition on the single-digits.

But there's another part I'd like to focus your attention on here !!

... a 16% increase in Insurance & Automotive Telematics of 23,000 to 147,000 units.

See how for the first time the insurance devices are renamed to "Insurance and Automotive"? That's because this is where the devices that fall under "Car Genie" and "ANWB Connected" belong now, I verified this directly with the company today.

That means that not only the 70,000 Fleet devices bring back a significant part of recurring revenue but also a small part of the Automotive devices now do as well. ANWB Connected has recurring…

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