REG - Quartix Technologies - Trading Statement

Quartix TechnologiesAnnouncement

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RNS Number : 3692B  Quartix Technologies PLC  22 April 2026

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.

 

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 provide the following
trading statement ahead of the Annual General Meeting later today, covering
the first three months of 2026 ("Q1").

Financial  Performance

The Group has made a good start to the year, with continued growth in ARR, net
revenue retention, vehicle subscriptions and customer base in each territory
we operate in in Q1. By comparison to a very strong first quarter last year,
new subscriptions and the rate of customer acquisition were lower year on year
but prospects remain encouraging for the rest of the year and the Company
maintains its focus on the improvement of sales and marketing efficiency.

Revenue and profit are in line with achievement of market expectations for the
year(1).

Free cashflow for Q1 was very strong and is expected to have been £2.7m,
leaving the Company with a closing cash balance of £8.2m. £0.55m of this
improvement resulted from a refund of corporation tax relating to the
re-submission of FY 23 tax return and £0.35m from a delay Q1 tax payment that
cleared the bank in April.

In the 2025 Annual Report, the Company indicated that a payment of £1.1m was
expected to be made to HMRC by 31 March 2026 in respect of UK corporation tax.
As no payment details or confirmation of the amount due have yet been received
from HMRC, the Company now expects this cash outflow to occur in Q2 2026.

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 £1.6m in the Period to £38.6m on a
constant‑currency basis. On a trailing‑twelve‑month basis, ARR has grown
by £4.1m, or 12%. Of the £1.6m growth in the Period, £1.1m was derived from
new business. Following a particularly strong Q1 2025 performance, the ARR
growth in Q1 is around 20% lower than the ARR growth achieved in the same
period of the prior year. Net revenue retention increased from 95.7% to 98.1%
in the twelve months ending 31 March 2026, and further improvement in this
measure remains a management focus.

Measures of ARR and ARR growth are calculated on a constant-currency basis(4.)

Customer acquisition

New customer acquisition in Q1 decreased by 8% to 2,021 and new subscriptions
decreased by 13% to 19,301 compared with the same three‑month period in
2025. On a TTM basis, however, the customer base increased by 8% to 33,443 and
the total subscription base increased by 9% to 339,491, reflecting continued
expansion of the installed base despite the reduced growth in new customers
and units in Q1 as compared to Q1 2025.

The key metrics for the Group are shown below:

 Country  ARR (£m)   % Growth (TTM)  Sub Base (units)  % Growth (TTM)  Customer Base  % Growth (TTM)  New Subs (units)  % Growth (Q1)  New Customers Acquired  % Growth (Q1)
 UK/EI    20.28      +8%             168,204           +4%             11,993         +1%             6,422             -28%           428                     -13%
 France   10.48      +14%            94,762            +12%            10,012         +6%             6,431             -10%           647                     -5%
 USA      3.38       +5%             29,642            +1%             4,023          +3%             1,558             -25%           236                     -12%
 Italy    2.12       +39%            22,061            +40%            3,457          +38%            2,583             +33%           355                     +4%
 Spain    1.38       +32%            15,948            +30%            2,675          +20%            1,470             +13%           240                     -12%
 Germany  0.93       +45%            8,506             +20%            1,224          +19%            811               6%             113                     -23%
 Other    0.04                       368                               59                             26                               2
 Total    38.61      +12%            339,491           +9%             33,443         +8%             19,301            -13%           2,021                   -8%

 

4G Upgrade Programmes

Good progress has been made on the 4G upgrade programme in France, which
remains on schedule to conclude this year. Replacement of 2G tracking systems
in the UK  is continuing on the schedule noted in the Company's 2025 Annual
Report.

Outlook

Andy Walters, Executive Chairman of Quartix, commented:

"The Company has made a solid start to 2026, with continued growth in
annualised recurring revenue, strong net revenue retention and further
expansion of our international customer base. ARR increased to £38.6m on a
constant‑currency basis at 31 March 2026, with £1.1m of this growth coming
from new business, and net revenue retention improving to 98.1% over the
twelve months to that date. The Company continues to focus on the
effectiveness of its sales and marketing initiatives and is confident of
achieving market expectations for the year.

 

 Notes:

1              The Company believes that market expectations for
2026 were, prior to this announcement, revenue £40.3m, Adjusted EBIT £10.1m
and free cashflow of £4.7m.

2              Comparisons made on the basis of constant-currency
measurements are based on closing exchange rates applicable at 31/03/2026 of
$1.332 and €1.148 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)

 

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