REG - Trakm8 Holdings PLC - AGM Statement & Trading Update

Trakm8 HoldingsAnnouncement

21/09/2023 07:00

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RNS Number : 0843N  Trakm8 Holdings PLC  21 September 2023

     21 September 2023

Trakm8 Holdings plc

('Trakm8' or the 'Group')

 

AGM Statement & Trading Update

 

John Watkins, Executive Chairman of Trakm8 Holdings plc (AIM: TRAK), the
global telematics and data insight provider, will make the following statement
on current trading at Trakm8's Annual General meeting ("AGM") being held
today.

 

"The financial year has started in line with management's expectations,
details of which were set out in the Company's announcement on 4 July 2023.
Pleasingly, Fleet and Optimisation revenues have been ahead of last year.
However, as anticipated, Insurance revenues continue to be supressed because
of the capacity constraints in the Insurance market which have persisted,
though the addition of two new customers recently has provided some mitigation
to this. Notwithstanding this, a very large increase in the cost of insurance
policies has significantly impacted the insurance market.

 

During the first five months of the current financial year, new unit sales
have decreased by 28% to 63,402 (last year's corresponding period: 87,362).
With the renewal of insurance policies also impacted, total connections have
reduced overall by approximately 6% to 326,000.

 

The Group has benefitted from the considerably lower levels of overheads
following the cost reduction actions taken by the Board last year. We expect
revenues for the six months ending 30 September 2023 to be slightly lower than
last year's, but with a significantly lower cost base delivering a
significantly improved result.

 

We have recently undertaken a capital investment amounting to £0.5m in our
in-house data centres and as a result expect to significantly reduce the
external cost of hosting our platforms. The investment and overhead reductions
are anticipated to be fully operational by the start of the second half of
this financial year. This capital investment is anticipated to save £0.6m per
annum.

 

We had originally expected that during the second half of the current
financial year the capacity issues would reduce.  However, we now believe
that the downside risk of these challenges may continue for the remainder of
the financial year. We expect a third new client with capacity to start
ordering within the next few weeks. As a result, we expect that the number of
connections at year end (31 March 2024) will increase by circa 7% to 350,000,
which will be the driver for increased recurring revenues in subsequent years.

 

As previously advised, our expectations for the financial year remain
dependent on both the recovery of the capacity in the Insurance market and
ongoing discussions regarding securing a further significant new software
contract which we hope will be achieved at the end of the current financial
year. We remain confident in our current profit expectations for this
financial year; however this will be achieved on lower revenues due to the
insurance capacity and pricing issues offset by the lower cost base."

 

- Ends -

 

 

 

For further information:

 Trakm8 Holdings plc
 John Watkins, Executive Chairman                                   Tel: +44 (0) 1675 434 200
 Jon Edwards, Chief Financial Officer                               www.trakm8.com (http://www.trakm8.com/)

 Allenby Capital Limited (Nominated Adviser & Broker)               Tel: +44 (0)20 3328 5656
 David Hart / Vivek Bhardwaj, Corporate Finance                     www.allenbycapital.com

Tony Quirke / Joscelin Pinnington, Sales and Corporate Broking

 

About Trakm8

 

Trakm8 is a UK based technology leader in fleet management, insurance
telematics, connected car, and optimisation. Through IP owned technology, the
Group uses AI data analytics collected from its installed base of telematics
units to fine tune the algorithms that are used to produce its' solutions;
these monitor driver behaviour, identify crash events and monitor vehicle
health to provide actionable insights to continuously improve the security and
operational efficiency of both company fleets and private drivers.

The Group's product portfolio includes the latest data analytics and reporting
portal (Trakm8 Insight), integrated telematics/cameras/optimisation,
self-installed telematics units and one of the widest ranges of installed
telematics devices. Trakm8 has over 326,000 connections.

Headquartered in Coleshill near Birmingham alongside its manufacturing
facility, the Group supplies to the Fleet, Optimisation, Insurance and
Automotive sectors to many well-known customers in the UK and internationally
including the AA, Saint Gobain, EON, Iceland Foods, GSF, Direct Line Group,
Ticker and Howden Driving Data.

Trakm8 has been listed on the AIM market of the London Stock Exchange since
2005. Trakm8 is also recognised with the LSE Green Economy Mark.

 

www.trakm8.com (http://www.trakm8.com/)  / @Trakm8

 

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