REG - T42 IOT Tracking Sol - Year-End Trading Update

t42 IoT Tracking SolutionsAnnouncement

16/02/2023 07:00

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RNS Number : 0660Q  T42 IOT Tracking Solutions PLC  16 February 2023

 

16 February 2023

 

t42 IoT Tracking Solutions plc

("t42" or the "Company")

 

T42 year-end trading update

t42 IoT Tracking Solutions plc (AIM: TRAC) ("t42" or the "Company"), the
provider of global shipping containers tracking solutions, is pleased to
provide the following trading update for the year ended 31 December 2022
("FY2022") and an update on the Company's prospects for the current year. The
Company expects to announce its audited results for the year ended 31 December
2022 in March 2023.

 

The Company expects to report total revenues for FY2022 of approximately
US$4.0 million, including approximately $2.0 million of SaaS income
representing approximately 50% of the total revenues for the period (2021:
51%). This result was achieved in spite of the global supply chain issues
faced by many companies and continuing business recovery from the Covid
pandemic.

In 2022, the Company continued its expansion and is now well-positioned for
this year with numerous opportunities and potential new key customers. It has
continued its ongoing transition into the shipping container business sector
with a number of pilot studies with potential new customers. As a result,
initial orders from clients in the USA, South America, and Israel have been
received, indicating a positive outlook for 2023.

This year started with presentations of the Company's innovative solutions
through DHL, Eseye, and other partners at key exhibitions in Brazil and
Barcelona. The growing awareness of t42's Lokies and other products is already
generating new leads and business opportunities.

Furthermore, the Company expects to extend its presence in South America
following the deals announced last year.  Although small initial orders were
received in 2022 due to local political reasons, t42's distributor expects
that the situation will improve in the first half of this year and that more
substantial orders will begin to be received.

Following the growing demand in Africa, the Company continues to support its
Helios product line, meeting the need for product development. This includes
integration support for 2G networks and above and tailor-designed solutions
for various sectors, including t42's tracking and securing solutions for
sensitive medical store deliveries supporting its long-term Tanzanian
customers' requirements. Elsewhere, the relationship with Zero motorcycles
continues to be very positive, and further orders are expected this year.

The Company also announced the appointment of Openbox as a new distributor in
the USA. Whilst so far they have not performed according to their
expectations, nevertheless T42 has succeeded in directly  winning new
business in the USA, as announced in January 2023. Further orders are expected
to be received during the course of 2023.

 

In recent months t42 has made several enhancements to its product offering
through a new business model, which has been well-received by both existing
and new potential customers. A significant development was the Company's
decision to offer services while structuring payments for both devices and
SaaS fees on a monthly payment basis as a leasing contract. t42 has already
successfully contracted with a major USA company, adopting this payment
structure, and who has indicated its intention to place further orders during
2023. The Company expects this structure to attract new clients and is
evaluating funding requirements to support expansion of this new business
model.

 

The Company is targeting significant revenue improvement in 2023 based on
continued business with existing clients, including ongoing SaaS revenues.
Meanwhile, the Company is focusing on the need to accelerate upfront cash
payments to suppliers to shorten the supply chain period and ensure delivery
preference. In parallel, the Board continues to explore acquisition
opportunities to further broaden its business base and strengthen its presence
in its key markets.

 

Avi Hartmann, CEO of t42, commented: "We move forward with the new potential
customers while implementing the lessons learned from the completed pilots and
existing business. Our new strategy focusing on shipping container businesses
has proven itself, with increasing demand for our products and services. With
the new offering of lease-based contracts, the t42 Board is looking forward to
the coming year with confidence."

 

Contacts:

 

 t42 IoT Tracking Solutions PLC

 Michael Rosenberg, Chairman                                      07785 727595

 Avi Hartmann, CEO                                                +972 5477 35663

 Strand Hanson Limited (Nominated Adviser and Financial Adviser)  020 7409 3494

 James Harris/ Richard Johnson/ Robert Collins

 Peterhouse Capital Limited                                       020 7469 0930

 Lucy Williams/Duncan Vasey/Eran Zucker

 Yellow Jersey PR (Financial PR)                                  020 3004 9512

 Tom Randell/Henry Wilkinson/Annabelle Wills                      t42@yellowjerseypr.com (mailto:t42@yellowjerseypr.com)

 

Notes to Editors

 

t42 IoT Tracking Solutions plc (AIM: TRAC), formerly Starcom Systems plc,
provides real-time tracking, analysis, monitoring, and security IoT solutions
for the global container and freight market and covers 55 countries, over 100
distributors, and 50 logistics and support partners.

 

t42's multi-sensor IoT tracking devices use a wide range of detection
capabilities with cloud-based analytics and alerts, with real-time data
transmission, analysis, and actionable insights. Its devices are used by
ports, cargo owners, shipping companies, freight forwarders, insurance
companies, customs authorities, homeland security, and police for end-to-end
global container tracking and digital transformation of shipments.

 

For more information on the Company, please visit: www.t42.co.uk/
(http://www.t42.co.uk/) .

 

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

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