REG - Trakm8 Holdings PLC - Final Results <Origin Href="QuoteRef">TKM8.L</Origin> - Part 1
06/09/2014 02:36
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Trakm8 Holdings PLC
07 July 2014
7 July 2014
TRAKM8 HOLDINGS PLC
('Trakm8' or 'the Group' or 'the Company')
Final Results
for year ended 31 March 2014
Trakm8, the AIM-listed designer, developer and manufacturer of GPRS based
hardware and software for the vehicle placement and security market, is
pleased to announce its results for the year ended 31 March 2014.
Financial highlights
· Revenue up 94% at £9.19m (2013: £4.75m)
· Recurring revenues up by 111% to an annualised £4.5m
· Like for like orders received up 46%
· EBITDA pre-exceptional costs £1.18m (2013: £0.31m)
· Profit before tax pre-exceptional costs £0.83m (2013: £0.04m)
· Adjusted earnings per share 3.48p (2013: 0.79p)
· Strong Operating Cash Flow £1.32m: Net positive cash £0.62m
· Net assets increased to £5.13m (2013: £2.52m)
· Completed £2.07m fundraising; securing first Institutional Investors on
share register
Operating highlights
· Acquisition of BOX Telematics successfully completed and integrated
· Successful growth of recurring revenue business model
· Major contract secured with Direct Line Group
· Strong year for new product and service launches, including:
o T10 hardware family
o Swift 6 Fleet Management solution
· Encouraging order pipeline and sales opportunities
· Strengthened Board with appointment of Keith Evans as Independent
Non-Executive Director
Current trading
· Full year of BOX Telematics Limited and new contract awards secure strong
growth in revenues and profitability
· Successful migration of new product and solutions manufacturing from
Trakm8 into BOX Telematics
· Year to date revenues are well ahead of last year and trading is in line
with expectations
· Continue to identify and evaluate further acquisition opportunities
John Watkins, CEO of Trakm8, commented on the results:
"The year has been one of significant growth, both organically with new
product launches, in addition to client wins and through our investment in
earnings enhancing acquisitions.
"We are confident that our investments in acquisitions, new products and
additional sales resources will benefit the new financial year and beyond. The
full year impact of BOX, recent contracts secured, along with the new products
and solutions we have announced earlier this year will provide significant
growth in revenues in the current financial year. After the first two months
of trading our revenues are ahead of last year."
A presentation for analysts is being hosted today (7 July 2014) at 9.15am for
9.30am at MHP Communications' offices. For further information, please contact
MHP Communications on trakm8@mhpc.com.
-ends-
For further information please contact:
Trakm8 Holdings plc 01747 858444
John Watkins, Executive Chairman
James Hedges, Finance Director
MHP Communications (Financial PR to Trakm8) 020 3128 8100
Reg Hoare / Vicky Watkins
finnCap (Nomad & Broker to Trakm8) 020 7220 0500
Ed Frisby / Christopher Raggett - corporate financeSimon Starr / Joanna Weaving - corporate broking
Notes to Editors
Trakm8
Trakm8, the M2M telematics company using Big Data analytics to improve driver
behaviour is a leading technology designer, developer and manufacturer of
telematics products and solutions.
The Group, based in Shaftesbury, Dorset, distributes its hardware and software
through a network of distributors worldwide. In addition the Group provides
vehicle monitoring and tracking services direct to the B2B market. Trakm8's
IP owned products and services allow vehicles and drivers to be monitored,
allowing organisations to manage deliveries and services, or track stolen
vehicles down to five metres.
Recently Trakm8 have developed the T10 product range, which includes a
self-installed telematics device. The Group's services also include driver
behaviour management solutions that can reduce fuel consumption by 10% or
more, reduce risk of accidents, logistics routing & scheduling packages, and
tachograph data reporting. The Group's customers include Direct Line Group,
Eon, St Gobain, the AA, Fujitsu and Kubota.
Trakm8 has been listed on the AIM market of the London Stock Exchange since
2005.
www.trakm8.com
Trakm8 Holdings PLC
EXECUTIVE CHAIRMAN'S STATEMENT
Introduction
I am pleased to report that Trakm8's strategy of driving organic growth
through investments in engineering and sales resource, along with judicious
acquisitions, is proving successful. The year has been one of significant
growth, both organically with new product launches, in addition to client wins
and through our investment in earnings enhancing acquisitions.
As part of the strategy to develop the Group organically, Trakm8 has
successfully introduced a number of new products and software solutions that
have been well received by the market. These products are being integrated
into the BOX products and solutions channels.
The acquisition of BOX Telematics Limited (BOX) in October 2013 was a
significant milestone in the development of the Group. Due to the size of the
target it necessitated a reverse takeover under the AIM rules, a complex and
lengthy process. We successfully raised £2.07m new equity from existing
shareholders and new institutional investors, who represented the first such
investors on our shareholder register. This equity was raised at a premium to
the then prevailing share price, which was a testament to the value seen in
the combined Group.
All the costs associated with the transaction amounting to £0.43m have been
treated as exceptional when analysing the results.
The positive cash generation shows the strength of the Trakm8 financial model.
Year-end cash was £2.91m producing a net positive cash balance of £0.6m,
despite drawing down a £2.5m debt facility to fund the acquisition of BOX
Telematics.
Like for like sales overall were 14% higher and were supplemented by five
months of trading from BOX Telematics.
Trakm8 Limited has continued to enjoy a significant improvement in sales of
complete solutions and engineering services during the period. This has
resulted in strong growth in recurring revenues and higher margins on a like
for like basis.
Overall, the very strong levels of engineering service work in the final
months of the year resulted in a net profit before exceptional costs of
£0.83m. This was better than the level expected at the time of the acquisition
and compares favourably to last year's result of £0.04m.
Board Changes
During the year, we were also delighted to welcome Keith Evans as the new
Independent Non-Executive Director. He has brought a wealth of business
experience and expertise to the Board. At the same time, in July 2013, Dawson
Buck stepped down as Non-Executive Chairman and a Director of the Company and
the Board thanks him for his contribution.
Operational Review
The Group revenues are accounted for in four segments:
1. Products
This is the segment where Trakm8 supplies other Telematics Service Providers
with hardware devices.
The development of the T10 family of products is a significant step forward
for the Group. It is manufactured in our own facilities at much lower costs
than its predecessors. The range has been expanded to include self-fit devices
and simple security vehicle tracking units.
Product sales were 94% higher with a contribution from BOX broadening the
customer base and increasing the total sales in the segment. The largest
revenue generator in this segment is the JCB Live Link telematics device.
2. Solutions
This segment is where Trakm8 supplies customers with a fully integrated
service provision. Customers include the AA, Eon and Jewson. These solutions
are also provided through a partner in South Africa.
The acquisition of BOX Telematics broadened the range of customers and units
reporting to our servers. BOX's major route to market is via a dealer network.
Trakm8 mostly sells directly to fleets. As a result, the combined business has
approximately 60,000 units reporting to the servers. The recurring revenues
now amount to an annualised £4.55m. This represents an increase of 111% over
the previous year-end.
During the year the Company enhanced the engineering investments in new
solutions and launched updated versions of Swift and ecoN. We created
comparable solutions for BOX to roll out to their client base.
We also launched a sales and applications engineering team out of our office
in Prague. This operation has secured several customers and we expect it to be
self-funding by the end of the next financial year, following initial start-up
costs.
The major new development for the Group were the contracts awarded by Direct
Line Group and these were notified to the market on 13 January 2014 and on 2
May 2014. This customer is taking a number of services and products from
Trakm8 which will provide a solid recurring revenue stream. Trakm8 is
supplying Direct Line Group hardware based on their next generation telematics
device and the first of a new family of products called T10. The T10 Micro is
a fully functional telematics tracking device with CANbus communications. The
self-install device will be fitted by Direct Line Group customers to the
vehicle diagnostic socket and is probably the smallest such unit available
today. In addition, the technology developed for this contract will have a
wide range of applications with other customers and new markets.
We have established a wide number of new customer opportunities with trials
taking place. We expect that these will be earnings enhancing for the Group in
2014/15.
The Solutions segment is the core value enhancing activity of the Group and
its revenues increased by 60% to a total of £4.85m. This now represents 53% of
Group revenues.
3. Engineering Services
In this segment Trakm8 undertakes bespoke software development for customers.
The customer specific application engineering has been a major feature of the
product development team as the larger customers have demanded their
particular requirements. These in turn help to improve our core products.
The major projects this year were associated with Direct Line Group.
Significant projects were also undertaken for St Gobain, the AA and several
others.
These engineering projects are profitable consultancy activities in
themselves, help to integrate customers to Trakm8 solutions, and provide
on-going support and maintenance revenues. As such this segment remains a core
competence and key business strategy.
Engineering Services increased revenues by 130% over the previous year to
£0.93m (2013: £0.41m.)
4. Manufacturing Services
This segment is where Trakm8 undertakes design and manufacturing of electronic
assemblies for third party customers in the BOX Telematics facilities acquired
during the year. This segment adds value by fully utilising the manufacturing
investments and assists in securing the best possible supply chain for the
Trakm8 products. Revenues in this segment amounted to £0.87m representing 9%
of Group sales.
The fire monitoring product contract announced on 20 March 2013 was the
highlight of the year, although it will not benefit revenues until 2014/15.
Outlook
The Board is confident that our investments in acquisitions, new products and
additional sales resources will benefit the new financial year and beyond.
The full year impact of BOX, recent contracts secured, along with the new
products and solutions we have announced earlier this year will provide
significant growth in revenues in the current financial year. After the first
two months of trading our revenues are ahead of last year.
We continue to maintain a strong Statement of Financial Position, good cash
generation and robust business model which allows the Group to assess
opportunities which augment growth through selective acquisitions alongside
our current organic growth strategy. Any acquisition being considered will
need to meet our clearly defined market segment objectives and financial
criteria.
Lastly, I would like to thank all the Trakm8 staff for their exceptional
commitment and hard work in order to accomplish the significant progress made
over the past twelve months.
John Watkins
EXECUTIVE CHAIRMAN
Trakm8 Holdings PLC
STRATEGIC REPORT
Business Review and Principal Activities
Trakm8 Holdings PLC and its subsidiaries ("the Group") design, manufacture and
sell fleet management solutions and associated hardware components. These
solutions are used in a wide variety of applications from heavy duty
commercial vehicles to light CVs, cars, earth moving equipment and a number of
niche applications such a golf carts and industrial cleaning machines.
The solutions provide data for customers to more effectively use their
vehicles by reducing journey times, reducing fuel consumption and accidents,
improving utilisation and serviceability, expense tracking, and integration
into customers ERP systems.
The market for these solutions is growing as the cost of providing these
solutions reduces and the benefit of the data is becoming more valuable.
The competition is also growing and there remains pricing pressure being
mitigated by the increased functionality of the solutions. The market remains
largely fragmented although consolidation is occurring, particularly driven by
interest in the space from VCs.
The Group is playing its part of this consolidation as demonstrated by the
acquisition of BOX Telematics Limited in 2013.
Strong organic growth and the supplemented BOX installed base has grown the
installed base of units reporting to our servers with recurring revenues now
accounting for 37% of our total turnover.
Strategy
The Group strategy is to continue to provide M2M products and services that
grow the installed base of connections with service revenues, thus ensuring
predictable revenues and cash flows.
We will continue to increase our focus on utilisation of the accumulating
server data to create the algorithms that will improve the fuel economy
scoring and the driver insurance risk calculations. Trakm8 installed vehicles
cover over a billion miles each year. This data along with the statistical
analysis now available with latest computing techniques will drive the next
stages of improved returns on investment in the technology.
Trakm8 will also utilise its extensive vehicle electrical knowledge to drive
vehicle service algorithms to reduce breakdowns, improve serviceability and
reduce cost of ownership.
Trakm8 will provide hardware, software solutions and manufacturing services on
a stand-alone basis to third parties so long as they are part of Trakm8's core
offerings.
Organic Growth
The Group will continue to drive organic growth through widening the customer
base, increasing the range of solutions offered and broadening the geographic
coverage. With every size of the vehicle park now addressed from the smallest
fleets to the largest, from passenger cars to heavy duty trucks and industrial
equipment, Trakm8 has a sales channel and product suitable for all.
Trakm8 will continue to invest heavily in engineering new products and
solutions to ensure that these are market leading.
Increased international business development activities will expand the
geographic footprint.
Acquisitions
The Group will continue to seek acquisitions that will complement the organic
growth strategies we have. These will be businesses in the M2M and Big Data
space, where we can drive value for the shareholders and enhance the range of
markets and services we address.
Environmental
The Group provides products and services that are targeted at reducing the
consumption of the world's natural resources. As a Group we also strive to
ensure that we minimise the use of these resources ourselves.
Trakm8 has secured accreditation to ISO 14001 as part of its commitment to
best practice on Environmental matters.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group are set out in the
Directors' Report. The key risk is that the Group operates in the
technological industry which has a history of continuous technological
enhancements and unforeseen advances may lead to a lack of competitiveness.
Key Performance Indicators
The key performance indicators used to assess the performance and financial
status of the Group are as follows:-
1. Operating profit. The Group produced an operating profit of £429,219
compared to last year's operating profit of £39,577. The improvement stemmed
from increased profitability at Trakm8 and the five months results at Box
Telematics Limited.
2. Borrowings. The Group monitors its cash and borrowings position and
updates cash flow forecasts for the following twelve months on a daily basis.
Total cash resources at the year end were £2,910,786. During the year total
borrowings increased from £163,083 to £2,291,667 at the year end. The
increased borrowings were as a result of financing the acquisition of Box
Telematics Limited.
3. Customer services. The Group continues to analyse its customer support
to ensure a high quality of service is maintained.
Employee Matters
The Group recognises that the employees are the key asset of the business. The
Board of Directors has employee satisfaction monitoring processes and has
succession planning in place. There are company-wide communication activities
both in person and via the Group intranet. The Company provides competitive
compensation plans and has a scheme whereby the staff share in the success of
the Group.
Trakm8 secured accreditation to ISO 18001 as part of its commitment to best
practice on the management of Health and Safety.
Employment Policy
During the year, the Group has consulted with employees in matters likely to
affect their interests and is committed to involving them in the performance
and development of the Group.
Disabled Employees
The Group gives full consideration to applications for employment from
disabled persons where the requirements of the job can be adequately fulfilled
by a disabled person.
Should existing employees become disabled, it is the Group's policy wherever
practicable to provide continuing employment under normal terms and conditions
and to provide training, career development and promotion to such employees as
appropriate.
John Watkins
Executive Chairman
Trakm8 Holdings PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2014
Notes 2014 2013
£ £
REVENUE 4 9,193,073 4,749,916
Cost of sales (3,931,987) (1,332,833)
Gross profit 5,261,086 3,417,083
Administrative expenses before exceptional costs (4,398,516) (3,377,506)
OPERATING PROFIT before exceptional costs 5 862,570 39,577
Exceptional costs 6 (433,351) -
OPERATING PROFIT 429,219 39,577
Finance income 2,618 2,423
431,837 42,000
Finance costs 7 (35,314) (4,478)
PROFIT BEFORE TAXATION 396,523 37,522
Income tax 74,955 112,537
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT 471,478 150,059
OTHER COMPREHENSIVE INCOME
Currency translation differences (3,150) (1,615)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT 468,328 148,444
EARNINGS PER ORDINARY SHARE (PENCE) ATTRIBUTABLE TO OWNERS OF THE PARENT
Basic 8 2.01p 0.79p
Diluted 8 1.90p 0.78p
There were no discontinued operations in 2014 or 2013. Accordingly the
results relate to continuing operations.
Trakm8 Holdings PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 31 March 2014
Share capital Share premium Merger reserve Translation reserve Retained earnings Total equity attributable to owners of the parent
£ £ £ £ £ £
Balance as at 1 April 2012 188,647 1,723,652 509,837 204,828 (247,131) 2,379,833
Comprehensive income
Profit for the year - - - - 150,059 150,059
Other comprehensive income
Exchange differences ontranslation of overseas operations - - - (1,615) - (1,615)
Total comprehensive income - - - (1,615) 150,059 148,444
Transactions with owners
Shares issuedPurchase of own shares 5,500- 27,500- -- -- -(57,924) 33,000(57,924)
IFRS2 Share based payments - - - - 19,656 19,656
Transactions with owners 5,500 27,500 - - (38,268) (5,268)
Balance as at 1 April 2013 194,147 1,751,152 509,837 203,213 (135,340) 2,523,009
Comprehensive income
Profit for the year - - - - 471,478 471,478
Other comprehensive income
Exchange differences ontranslation of overseas operations - - - (3,150) - (3,150)
Total comprehensive income - - - (3,150) 471,478 468,328
Transactions with owners
Shares issued 94,591 1,981,909 - - - 2,076,500
Share placing fees - (91,500) - - - (91,500)
Sale of own shares - - - - 101,750 101,750
IFRS2 Share based payments - - - - 53,989 53,989
Transactions with owners 94,591 1,890,409 - - 155,739 2,140,739
Balance as at 31 March 2014 288,738 3,641,561 509,837 200,063 491,877 5,132,076
Trakm8 Holdings PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2014
Notes 2014 2013
£ £
NON CURRENT ASSETS
Intangible assets 3,249,408 868,530
Property and equipment 1,157,222 560,175
Deferred income tax asset 753,134 110,290
5,159,764 1,538,995
CURRENT ASSETS
Inventories 1,280,609 548,143
Trade and other receivables 3,269,643 643,172
Current tax assets - 100,668
Cash and cash equivalents 2,910,786 1,405,133
7,461,038 2,697,116
CURRENT LIABILITIES
Trade and other payables (5,035,873) (1,532,349)
Borrowings (499,992) (46,740)
(5,535,865) (1,579,089)
CURRENT ASSETS LESS CURRENT LIABILITIES 1,925,173 1,118,027
TOTAL ASSETS LESS CURRENT LIABILITIES 7,084,937 2,657,022
NON CURRENT LIABILITIES
Borrowings (1,791,675) (116,343)
Provisions (161,186) (17,670)
NET ASSETS 5,132,076 2,523,009
EQUITY
Share capital 10 288,738 194,147
Share premium account 3,641,561 1,751,152
Merger reserve account 509,837 509,837
Translation reserve 200,063 203,213
Retained earnings 491,877 (135,340)
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 5,132,076 2,523,009
These financial statements were approved by the Board of Directors and
authorised for issue on 7th July 2014 and are signed on their behalf by:
J Watkins
J Hedges
Director
Director
Trakm8 Holdings PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March 2014
2014 2013
£ £
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,324,328 496,650
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary undertaking (net of cash acquired) (2,991,500) -
Purchases of property, plant and equipment (302,510) (97,834)
Proceeds from sale of plant and equipment 10,000 -
NET CASH USED IN INVESTING ACTIVITIES (3,284,010) (97,834)
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of new shares 1,985,000 33,000
New bank loan 2,500,000 -
Sale / (Purchase) of Treasury shares 101,750 (57,924)
Repayment of obligations under hire purchase agreements (25,000) (35,125)
Repayment of loans (1,096,416) (21,108)
NET CASH FROM / (USED IN) FINANCING ACTIVITIES 3,465,334 (81,157)
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,505,652 317,659
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,405,133 1,087,474
CASH AND CASH EQUIVALENTS AT END OF YEAR 2,910,785 1,405,133
Trakm8 Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2014
1. GENERAL INFORMATION
Trakm8 Holdings PLC ("Company") is a public limited company incorporated in
the United Kingdom (registration number 05452547). The Company is domiciled in
the United Kingdom and its registered office address is Lydden House, Wincombe
Business Park, Shaftesbury, Dorset, SP7 9QJ. The Company's Ordinary shares are
traded on the AIM market of the London Stock Exchange.
The Group's principal activity is the manufacture, marketing and distribution
of vehicle telematics equipment and services. The Company's principal activity
is to act as a holding company for its subsidiaries.
2. AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH
IFRS
The Group's financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and International
Financial Reporting Interpretations Committee ("IFRIC") interpretations as
endorsed by the European Union, and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
3. BASIS OF PREPARATION
The accounting policies set out in note 4 have been applied consistently to
all periods presented in these consolidated financial statements.
These financial statements are presented in sterling as that is considered to
be the currency of the primary economic environment in which the Group
operates. This decision was based on the Group's workforce being based in the
UK and that sterling is the currency in which management reporting and
decision making is based.
4. SEGMENTAL ANALYSIS
The format of segmental reporting is based on the Group's management and
internal reporting of the segments below which carry different risks and
rewards and are used to make strategic decisions. Products is the sale of
hardware through the Group's distributors. Solutions represents the sale of
the Group's full vehicle telematics service direct to customers. Engineering
services comprises bespoke engineering, professional services and mapping
solutions.
The Board review the revenue results and gross margin by segment. Cost of
sales comprise hardware costs and have been allocated to the segments based on
the number of units sold. Administration costs and assets and liabilities are
not separated out by segment.
Year ended 31 March 2014 Products £ Solutions £ Engineering services £ Manufacturing services £ Unallocated £ Total £
Segment revenue 2,540,153 4,851,121 933,745 868,054 - 9,193,073
Gross profit 596,347 3,648,624 917,488 98,627 - 5,261,086
Depreciation & amortisation (76,136) (137,530) (97,290) (10,219) - (321,175)
Finance income - - - - 2,618 2,618
Finance costs - - - - (35,314) (35,314)
Income tax - - - - 74,955 74,955
Year ended 31 March 2013 Products £ Solutions £ Engineering services £ Manufacturing services £ Unallocated £ Total £
Segment revenue 1,308,627 3,035,466 405,823 - - 4,749,916
Gross profit 306,945 2,704,315 405,823 - - 3,417,083
Depreciation & amortisation (117,115) (64,884) (89,830) - - (271,829)
Finance income - - - - 2,423 2,423
Finance costs - - - - (4,478) (4,478)
Income tax - - - - 112,537 112,537
The Group's operations are located in the UK and the Czech Republic. The
following table provides an analysis of the Group's revenue by geography based
upon location of the Group's customers.
Year ended 31 March 2014 Products £ Solutions £ Engineering services £ Manufacturing services £ Total £
United Kingdom 1,850,118 4,751,319 832,532 840,974 8,274,943
Europe 12,384 85,612 9,263 27,080 134,339
Africa 4,200 - 90,000 - 94,200
Rest of the World 673,451 14,190 1,950 - 689,591
2,540,153 4,851,121 933,745 868,054 9,193,073
The Group had one customer who accounted for more than 10% of the Group
revenue (2013: one). Total revenue was £1,550,132 and has been included in
the products segment.
Year ended 31 March 2013 Products £ Solutions £ Engineering services £ Manufacturing services £ Total £
United Kingdom 219,703 2,942,885 303,152 - 3,465,740
Europe 608,186 65,744 5,646 - 679,576
Africa 93,000 - 90,525 - 183,525
Rest of the World 387,738 26,837 6,500 - 421,075
1,308,627 3,035,466 405,823 - 4,749,916
5. PROFIT FROM OPERATIONS
2014 2013
£ £
Profit from operations is stated after charging:
Loss on disposal of fixed assets - 2,633
Depreciation - owned fixed assets - assets on hire purchase 102,30016,667 33,56018,417
Amortisation of intangible assets 202,208 219,852
Operating lease rentals
Land and buildings 47,411 17,729
Other 105,781 76,187
Loss on foreign exchange transactions 13,373 6,936
Staff costs (note 11) 2,892,974 1,945,388
2014 2013
£ £
Auditor's remuneration
- audit services
Parent Company and consolidation 8,760 4,825
Subsidiary audits 26,475 11,250
- tax advisory services 3,900 2,340
6. EXCEPTIONAL COSTS
2014 2013
£ £
Costs incurred on acquisition of Box Telematics Limited 365,512 -
Integration costs 67,839 -
=================== ===================
The amount of £365,512 is in respect of costs incurred in the year as a result
of the acquisition of Box Telematics Limited.
The integration costs related to the reorganisation of management following
the acquisition of Box Telematics Limited.
7. FINANCE COSTS
2014 2013
£ £
Interest on bank loans 35,314 4,478
=================== ===================
8. EARNINGS PER ORDINARY SHARE
The earnings per Ordinary share have been calculated using the profit for the
year and the weighted average number of Ordinary shares in issue during the
year as follows:
2014 2013
£ £
Earnings for the year after taxation 471,478 150,059
======================== ========================
No. No.
Number of Ordinary shares of 1p each 28,873,821 19,044,731
Basic weighted average number of Ordinary shares of 1p each 23,476,997 18,999,526
Basic weighted average number of Ordinary shares of 1p each (diluted) 24,767,077 19,208,565
====================== == ====================== ==
Earnings per share 2.01p 0.79p
Adjusted earnings per share (pre exceptional costs) 3.48p 0.79p
Diluted earnings per share 1.90p 0.78p
====================== == ====================== ==
====================== ==
====================== ==
9. ACQUISITION
On 25 October 2013 the Company acquired the entire share capital of Box
Telematics Limited for a total consideration of £4,220,000. Box is a vehicle
telematics business providing fleet management systems and in-house telematics
design services. In addition it has a contract electronic manufacturing
facility. The business was acquired to provide an enlarged installed base of
solution services and for Trakm8 to benefit from the use of Box's
manufacturing and assembly facilities.
The assets and liabilities as at 25 October 2013 arising from the acquisition
were as follows:-
Book value Fair value
£ £
Property, plant and equipment 576,717 424,022
Deferred tax asset 1,252,192 578,741
Inventories 931,424 983,160
Trade and other receivables 1,643,311 1,585,341
Cash and cash equivalents 1,228,500 1,228,500
Trade and other payables (1,763,707) (1,808,040)
Directors' loan account (750,838) (750,838)
Net assets acquired 3,117,599 2,240,886
Goodwill 1,979,114
Total consideration 4,220,000
Satisfied by:
Cash 4,220,000
From the date of acquisition to 31 March 2014 Box Telematics Limited
contributed revenue of £3,815,129 and profit of £571,639. If the acquisition
had occurred on 1 April 2013 Box Telematics Limited would have contributed a
further £4,763,958 to revenue and £332,771 to profit before exceptional costs
for the period to 24 October 2013.
10. SHARE CAPITAL
2014 2013
No's '000's £ No's '000's £
Authorised
Ordinary shares of 1p each 200,000 2,000,000 200,000 2,000,000
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Allotted, issued and fully paid
Ordinary shares of 1p each 28,874 288,738 19,414 194,147
======================== ======================== ======================== ========================
========================
Movement in share capital:
2014 2013
£ £
As at 1 April 2013 194,147 187,647
New shares issued 94,591 5,500
As at 31 March 2014 288,738 193,147
The Company currently holds 150,000 Ordinary shares in treasury representing
0.5% of the Company's issued share capital. The number of 1 pence Ordinary
shares that the Company has in issue less the total number of Treasury shares
is 28,723,821.
11. SHARE-BASED PAYMENTS
Trakm8 Holdings PLC has issued options (under the Trakm8 Approved Option
Scheme) to subscribe for Ordinary shares of 1p in the Company. The purpose of
the Option Scheme is to retain and motivate eligible employees.
The exercise of all share options is the closing market price on the day of
grant. A vesting period of 1 to 3 years is applicable according to the terms
of each scheme.
The fair value of the equity settled share options granted is estimated as at
the date of grant using the Black Scholes option pricing model taking into
account the terms and conditions upon which the options were granted. No
performance conditions were included in the fair value calculations.
Option Exercise Price Grant date Option & expected Life (years) Risk free rate of return Volatility
15.50p 30/04/10 3.0 3.02% 54.0%
12.50p 31/07/11 3.0 3.02% 54.0%
13.00p 30/07/12 10.0 3.02% 54.0%
19.50p 24/04/13 10.0 3.02% 57.5%
17.00p 25/07/13 10.0 3.02% 57.5%
44.50p 21/01/14 10.0 3.02% 57.5%
45.25p 27/01/14 10.0 3.02% 57.5%
The risk free rate of return is the yield on government gilt
- More to follow, for following part double click ID:nRSG5553LbRecent news on Trakm8 Holdings
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AnnouncementREG - Trakm8 Holdings PLC - Trading update
AnnouncementREG - Trakm8 Holdings PLC - Half-year Report
AnnouncementREG - Trakm8 Holdings PLC - Directorate Change
AnnouncementREG - Trakm8 Holdings PLC - Holding(s) in Company
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