REG - Quartix Technologies - Interim Results Timetable and Trading Update

Quartix TechnologiesAnnouncement

10/07/2023 07:00

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RNS Number : 4125F  Quartix Technologies PLC  10 July 2023

Quartix Technologies plc

("Quartix", "the Group" or "the Company")

Interim Results Timetable and Trading Update

 

Quartix Technologies plc, a leading supplier of subscription-based vehicle
tracking systems, analytical software and services, is pleased to announce
that it will publish interim results for the six-month period ending 30 June
2023 (the "Period") on Monday 31 July 2023.  They will be posted on the
Company's website that morning, together with accompanying presentations.

 

H1 Trading

 

The Company is pleased to report year-on-year growth in our subscription base
during the first half of 2023 of 14%.  Year-on-year subscription base growth
in H1 was moderate, as Q1 2022 benefited from a large annualised order in the
UK, however Q2 saw growth resume to expected levels.  New units installed
totalled 33,400 units, which was a record number of new subscriptions for a
6-month period.  As a consequence, the vehicle subscription base as at 30
June 2023 increased to 252,000 vehicles, with the annualised subscription base
value increased by £2.1m (2022 £2.6m) on a constant-currency(1) basis to
£28.0m.

 

Recurring revenues remained high at 94% of sales. Price erosion over 12
months, calculated at constant currency rates, continues to improve and was
4.6% compared to 4.8% in the same period in 2022.  Attrition has been higher
at 13.5% (11.6% PY), primarily due to an increase in business closures and
customers downsizing their fleet sizes, caused by external market
conditions.  The cash balance as at 30 June was £3.2m.  For the full year
the Board expects revenue, adjusted EBITDA, and free cash flow to be in line
with consensus market forecasts(2).

 

Year-on-year subscription base growth in France and our other European
territories was excellent at 32% and 53% respectively.  Our more mature UK
operation continues to perform well and saw 6% year-on-year growth. Strategic
changes have redirected investment from our wider US business to territories
that will present improved returns on investment in the shorter term.  The US
strategy will therefore have a narrower, field sales approach, focused
specifically on Texas moving forward.

 

Year-on-year growth in subscription bases by geography as at 30(th) June are
shown in the table below. Exact totals may vary slightly in preparation of the
interim results.

 

                        H1 2023  H1 2022  Growth
 UK                     140,991  133,020  6%
 France                 61,298   46,387   32%
 USA                    30,352   29,888   2%
 Spain, Italy, Germany  19,146   12,505   53%
 Total                  251,787  221,800  14%

 

 

Richard Lilwall, Chief Executive Officer of Quartix commented:

 

"Quartix has performed well in the first half of 2023. Subscriptions to new
customers have been particularly pleasing, and mitigated economic headwinds
impacting both repeat units from existing customers, which are much more
sensitive to business confidence, and attrition, which has seen an increase
from customer insolvencies and fleet downsizing.

 

I am particularly pleased with the performance of our France based operations,
which saw investments in field-sellers over the previous two years deliver
excellent returns. Our other European territories also showed excellent levels
of subscription base growth. In the UK, where economic challenges are more
significant due to the larger subscription base, growth was supported by a
strong performance in new customer acquisition, which significantly mitigated
this impact. In the US we have made several strategic decisions including a
focus on field sellers and a single State.

 

We have a strong sales pipeline for the second half for both our core platform
and upsell product lines, EVolve and Qcheck, and have confidence in achieving
market expectations in 2023."

 

( 1 ) Based on currency rates as at 30 June 2023.

( 2 ) The Board believes that consensus market expectations for 2023, prior
to this announcement, were as follows: Revenue £30.8m, Adjusted EBITDA
£6.2m, and Free Cash Flow of £4.3m

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as retained as part of UK law by virtue of
the European Union (Withdrawal) Act 2018 as amended.

 

 

For further information, please contact:

 Quartix (www.quartix.net)                          01686 806 663

 Richard Lilwall, Chief Executive Officer

 Emily Rees, Chief Financial Officer
 finnCap (Nominated Adviser and Broker)                020 7220 0500

 Matt Goode / Seamus Fricker (Corporate Finance)

 Alice Lane / Sunila de Silva (Corporate Broking)

 

 

 

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