REG - Quartix Technologies - Trading Statement

Quartix TechnologiesAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250703:nRSC5121Pa&default-theme=true

RNS Number : 5121P  Quartix Technologies PLC  03 July 2025

Quartix Technologies plc

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

Trading Statement

Quartix Technologies plc, a leading supplier of subscription-based vehicle
tracking systems, software and services, is pleased to report that it will
publish interim results for the six-month period ending 30 June 2025 (the
"Period") on Thursday 24 July 2025.  They will be posted on the Company's
website that morning, together with an accompanying presentation.

Estimated Financial Results for the Period

Management estimates that the financial results for the Period will be as
follows:

·    Revenue: £17.5m (2024: £16.1m)

·    EBITDA: £3.6m and profit before tax: £3.5m (2024: both measures
£2.7m)

·    Free cashflow: £2.6m (2024: £1.1m). Closing cash balance of £4.1m.

Notes:

These figures may be subject to revision following completion of management
accounts for June and preparation of the interim results.

Estimated profit figures (EBITDA and profit before tax) are stated after
accounting for the costs of a reorganisation* which was carried out during
June at a cost of £0.4m in the Period.

The estimated free cashflow is stated after accounting for £0.5m of 4G
upgrade costs in France and approximately two thirds of the cash cost of the
reorganisation (£0.27m). The remainder of the latter will fall in Q3.

The Company is confident of achieving market expectations(1) for the year for
revenue and EBITDA and of being slightly ahead on free cashflow. The Company
expects to declare an interim dividend of 2.5p per ordinary share (2024:
1.5p).

Annualised Recurring Revenue ("ARR")

ARR is the key forward-looking measure of growth for the Company and an
important indicator of shareholder value. ARR reported by the Company relates
solely to committed software subscription revenues and does not include other
service revenues which may recur.

The Company's ARR increased by £2.7m during the Period to £35.0m,
representing an increase of 31% over the ARR growth achieved in the same
period in 2024. On a trailing-twelve-month ("TTM") basis to 30 June 2025 ARR
has grown by £4.1m, or 13% (30 June 2024: £3.1m TTM).

Net revenue retention ("NRR") on a TTM basis increased from 95.7% to 97.3% in
the Period. Further improvement in this measure is targeted.

Measures of ARR and ARR growth are calculated on a constant-currency basis(2).

Customer acquisition

New customer acquisition in the Period increased by 13% to 3,962 new customers
and new subscriptions increased by 7% to 40,698. Both figures are quoted in
comparison with the same six-month period in 2024.

On a TTM basis, the customer base increased by 11% to 31,588, and the total
subscription base increased by 13% to 318,947.

The key metrics for the Group are shown below:

 Country  ARR (£m)   TTM% growth  Subscription Base (units)  TTM% growth  Customer Base  TTM% growth  New Subscriptions (units)  % growth  New Customers  % growth
 UK/EI    19.0       10%          164,102                    8%           11,872         4%           16,464                     4%        881            11%
 France   9.28       14%          86,845                     16%          9,570          10%          12,651                     7%        1,219          -2%
 USA      3.18       10%          30,039                     4%           3,989          6%           3,980                      27%       535            52%
 Italy    1.60       38%          16,925                     38%          2,674          39%          3,567                      12%       605            26%
 Spain    1.08       36%          13,056                     35%          2,343          28%          2,567                      16%       480            14%
 Germany  0.77       38%          7,507                      37%          1,069          29%          1,443                      -10%      240            9%
 Other    0.05                    473                                     71                          26                                   2
 Total    34.95      13%          318,947                    13%          31,588         11%          40,698                     7%        3,962          13%

 

*Reorganisation/ reduction in overhead costs

In June the Company combined its two principal software teams to form one
consolidated department with responsibility for all database and API
development to support customer application (front-end) development and
internal business systems. At the same time a new front-end/ user interface
team was created to focus on development and enhancement of the Company's web
application software.

This new team is focused on enhancing ease of use, responsiveness, and speed
of access to key operational data for our customers. These measures were
designed to support our renewed strategic focus on the Company's core
telematics subscription business by further developing best-in-class software
applications and by enabling additional investment in business development
through cost savings.

Some further recruitment of senior staff for the front-end team is well
underway and, net of the anticipated cost of this, together with the impact of
other cost initiatives, the overall effect will have been to reduce overhead
run-rate by £0.5m per annum from July 2025.

Outlook

The accelerated growth in ARR and emphasis on overhead efficiency provide the
opportunity for increased investment in ARR growth in 2026 as well as
continued improvement in profitability. We look forward to the rest of this
year and next with confidence.

Andy Walters, Executive Chairman of Quartix, commented:

"We have made strong progress in the first half of 2025. Over the past 12
months our annualised subscription revenues have risen by a record £4.1m, or
13%, to £35.0m; we finished the first half with a substantial order backlog
for installation in July and August."

 

Notes:

1              The Company believes that market expectations for
2025 were, prior to this announcement,  revenue £36.0m, EBITDA £7.0m and
free cashflow of £3.5m.

2              Comparisons made on the basis of constant-currency
measurements are based on closing exchange rates applicable at 30/6/2025 of
$1.3752 and €1.1644 to pounds sterling.

 

 

For further Information please contact:

 Quartix (www.quartix.com)                                             01686 806 663

 Andrew Walters, Executive Chairman

 Sally Morton, Company Secretary

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)      020 7200 0500

 Matt Goode / Seamus Fricker / Trisyia Jamaludin (Corporate Finance)

 Sunila de Silva (Equity Capital Markets)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTMZGGNMZLGKZZ