REG - Trakm8 Holdings PLC - Half-year Report
24/11/2023 07:00
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RNS Number : 5303U Trakm8 Holdings PLC 24 November 2023
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation
24 November 2023
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Half Year Results
Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight
provider, announces its unaudited results for the six months ended 30
September 2023:
Financial Highlights
6 months to 6 months to Year to 31
30 Sept 2023 30 Sept 2022 March 2023
Unaudited Unaudited Audited
£000 £000 £000
Revenue 8,537 9,012 20,197
of which, recurring revenue(1) 5,234 5,076 10,466
Profit/(Loss) before tax 13 (2,413) (1,243)
Adjusted Profit/(Loss) before tax(2) 119 (1,077) 306
Profit/(Loss) after tax 94 (1,775) (774)
Cash generated from operations 2,349 1,435 4,314
Net Bank Debt(3) 5,570 6,243 5,618
Basic earnings/(loss) per share 0.22p (3.55p) (1.57p)
Adjusted basic earnings/(loss) per share 0.38p (1.37p) 0.95p
1 Recurring revenues are generated from service and maintenance fees
2 Before exceptional costs and share based payments
3. Total borrowings less cash excluding IFRS 16 adjustment for leased property
and motor vehicles
Operational Overview
· H1 2023 results:
o Revenues modestly lower due to significant insurance capacity driven
reduction in demand
o Gross margins significantly improved
o Overheads significantly reduced
o Losses eliminated with a shift towards profitability
o Improved cash generation from operations - c. 63 per cent increase on the
comparable period
· H2 2023/24 and FY2025 outlook:
o Insurance capacity not expected to return significantly this year; however
new customers improving demand for H2 2023/24 and capacity is expected to
recover for FY25
o Major automotive customer demand expected to positively impact FY25
o Substantial investment in second Data Centre to reduce operation costs by
£0.6m per annum
o Large Optimisation software contract sale still expected to conclude in
FY24
Outlook
The Board expects to meet market expectations, provided a significant software
sale is secured late in FY24. In this respect, discussions are ongoing to
secure a large optimisation software sales contract, and while there can be no
certainty, the Board remains confident of the prospects of concluding such
discussions in FY24.
- 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 324,000 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, Stark Building Materials, EON, Iceland Foods, GSF Car Parts,
Direct Line Group, and Freedom Group.
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
Executive Chairman's Statement
Results
I am pleased to report Trakm8's unaudited results for the six months ended 30
September 2023 ("H1 2023").
The first half of the financial year was in line with recent Company guidance.
Revenues for the unaudited six-month period ended 30 September 2023 were
modestly lower in comparison to the corresponding period of the previous
financial year at £8.54m (H1 2022: £9.01m).
In H1 2023, there was a 2% increase in Fleet & Optimisation revenues to
£4.90m and a reduction of 13% in Insurance revenues to £3.63m. We have
reported previously on the dreadful current state of the UK motor insurance
market, and this has had a significant impact on us. We estimate that the loss
of insurance capacity has reduced revenues in the financial period concerned
by £1.6m with overall connections reducing by 7% to 324,000 (FY ending
31.3.2023: 348,000). Notwithstanding this deterioration, there are some
positives with a 14% uplift in our Automotive revenues during the financial
period as a result of the success of our customers' service, maintenance and
repair activities.
The Group is pleased to report a significant improvement in the profitability
of the Group with an Adjusted Profit of £0.10m (H1 2022: loss £1.08m),
Profit before Tax of £13k (H1 2022: loss £2.41m) and Profit after Tax of
£0.10m (H1 2022: loss £1.78m).
During the period, material increases in motor insurance premiums and capacity
constraints caused Insurance unit sales to reduce by 31% to 66,000 and
Insurance & Automotive connections to decrease by 7% to 259,000 (FY ending
31.3.23: 279,000). Notwithstanding this, we do believe that new policies
written will exceed cancelled policies going forward.
In Fleet & Optimisation, our focus on Enterprise and higher margin
business has resulted in connections decreasing by 6% to 65,000 (FY Ending
31.3.23: 69,000), with higher attrition in the small fleet sector, but
revenues continuing to grow as previously reported. Fleet unit sales also
decreased by 38% to 5,000 but with corresponding device revenues up 20% as
more complex solutions continued to be delivered to new and existing
customers.
Pleasingly, Recurring Revenues in the period increased over the previous year
by 3% to £5.23m and represent 61% of the Group's overall revenues. In
addition, the Group generated £0.20m of software revenues (H1 2022: £0.12m),
which represent 2% of the Group's overall revenues. Software contract revenues
are again weighted to the second half of the financial year, as was the case
in previous financial years, from both new and existing customers who rely on
our solutions for their fleet operations.
The supply chain challenges of the previous year are largely behind us. We
have designed all new hardware products with the latest components that are
more expensive than those they replaced, but we expect that these new
components will start to reduce in cost next year. Despite this material cost
impact, gross profit margin has improved to 67% (H1 2022: 58%). This is due in
part to improved factory efficiencies but also the higher recurring revenues
as a percentage of sales. Despite the insurance demand reduction, commitments
to suppliers for components have not commensurately been deferred and
inventory has accordingly continued to increase. It is expected that this
increase in inventory will be reduced somewhat this financial year, with
further reductions taking place in the next financial year.
In 2018, we launched the RH600, the first 4G live streaming integrated
telematics camera, which has since received multiple industry awards. This
year we have launched the RH800, which has core technology based on the RH600
but is capable of being used in the five camera solutions which are
increasingly common. We expect that the RH800 will be the same leap forward in
technology for the market that the RH600 was.
At the end of H1 2022, the Company embarked on a refocus of business
activities and as a result was able to significantly reduce overheads.
Overall, overheads have reduced by £913k compared to the previous financial
period.
Financial position
Cash generation from operations was £2.35m (H1 2022: £1.44m) and as at 30
September 2023, the Group's net bank debt, excluding the impact of the IFRS16
lease liability, was £5.57m (H1 2022 £6.24m), representing a reduction of
£0.05m compared to the end the previous financial year. The capital
investment project for our second data centre of £0.5m increased debt by
£0.2m in the financial period concerned. Further capital investment is
anticipated to be committed in early H2 2023. The Board believes that this
capital investment should generate significant return on investment over the
coming months and will ensure that we continue to deliver cutting edge
solutions to our customers. As at 30 September 2023, the Group had £0.87m of
cash on hand and a further £0.50m of available funds under an existing
overdraft facility.
The overall cash outflow for the financial period was £0.25m (H1 2022: inflow
of £0.29m).
Strategy
The Group has been following the strategy outlined in its final results for
the year ended 31 March 2023, which was announced on 4 July 2023. Our focus is
to provide ever more meaningful insights to our customers using the data
generated by our installed devices and other connections so that they can run
their operations more efficiently and safely.
Our primary strategy going forward is continuing to grow the business through
more connections, increased device sales and higher service fees. However,
there have been serious headwinds in the motor insurance market with material
policy price increases and a reduction in capacity. Although we have secured a
number of additional customers, there has been a reduction in total
connections. Despite this, we believe that the point has come that growth in
connections will now restart. We are also expecting our Optimisation business
to expand further into the home delivery space.
Trakm8 has focused on delivering market leading technology and ensures that
the solutions are generating the best possible returns for our customers. We
have reduced the levels of expenditure in R&D as we now have the latest
technology in all our devices and our Insight platform is mostly feature
complete. The launch of the RH800 for multicamera applications is a
significant step forward in the Fleet market. We continue to own the majority
of intellectual property in our value chain. We have been building out greater
functionality of existing solutions. As a result, going forward we will meet
our objectives of remaining a leading-edge technology company but at a lower
investment cost.
Our third strategy has been to improve the efficiencies of our business in
every possible way. We have been successful in significantly reducing our
future overhead costs by £2.1m per annum and have implemented the investment
in a second data centre, which will reduce our hosting costs by £0.6m per
annum. We will continue to seek out further external cost reductions.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the six months to
30 September
2023
Six months to 30 September 2023 Six months to 30 September 2022 Year to 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Revenue 3 8,537 9,012 20,197
Cost of sales (2,817) (3,786) (7,445)
Exceptional cost of sales - - (261)
Gross profit 5,720 5,226 12,491
Other income 4 - 16 16
Administrative expenses excluding exceptional costs (5,184) (6,097) (11,860)
Exceptional administrative costs 7 (94) (1,319) (1,272)
Total administrative costs (5,278) (7,416) (13,132)
Operating profit/(loss) 442 (2,174) (625)
Finance income 13 29 50
Finance costs 8 (442) (268) (668)
Profit/(Loss) before taxation 13 (2,413) (1,243)
Income tax 96 636 460
Profit/(Loss) for the period 109 (1,777) (783)
Other Comprehensive Income
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translation of foreign operations (15) 2 9
Total other comprehensive income (15) 2 9
Total Comprehensive Profit/(Loss) for the period attributable to owners
of the parent 5 94 (1,775) (774)
Profit/(Loss) before taxation 6 13 (2,413) (1,243)
Exceptional cost of sales - - 261
Exceptional administrative costs 94 1,319 1,272
IFRS2 Share based payments charge 12 17 16
Adjusted profit/(loss) before tax 119 (1,077) 306
Earnings per ordinary share (pence) attributable to owners of the Parent
Basic 9 0.22 (3.55) (1.57)
Diluted 9 0.22 (3.55) (1.57)
The results relate to continuing operations.
Unaudited Consolidated Statement of Changes in Equity for the six months to
30 September
2023
Share capital Share premium Merger reserve Translation reserve Treasury reserve Convertible loan reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 April 2022 500 14,691 1,138 203 (4) - 3,348 19,876
Comprehensive income
Loss for the period - - - - - - (1,777) (1,777)
Other comprehensive income
Exchange differences on translation of overseas operations - - - 2 - - - 2
Total comprehensive income - - - 2 - - (1,777) (1,775)
Transactions with owners
IFRS 2 Share-based payments - - - - - - 17 17
Convertible Loan - - - - - 11 - 11
Transactions with owners - - - - - 11 17 28
Balance as at 30 Sept 2022 500 14,691 1,138 205 (4) 11 1,588 18,129
Comprehensive income
Profit for the period - - - - - - 994 994
Other comprehensive income
Exchange differences on translation of overseas operations - - - 7 - - - 7
Total comprehensive income - - - 7 - - 994 1,001
Transactions with owners
IFRS2 Share-based payments - - - - - - (1) (1)
Transactions with owners - - - - - - (1) (1)
Balance as at 31 March 2023 500 14,691 1,138 212 (4) 11 2,581 19,129
Comprehensive income
Profit for the period - - - - - - 109 109
Other comprehensive income
Exchange differences on translation of overseas operations - - - (15) - - (15)
Total comprehensive income - - - (15) - - 109 94
Transactions with owners
IFRS2 Share based payments - - - - - - 12 12
Convertible loan - - - - - - - -
Transactions with owners - - - - - - 12 12
Balance as at 30 Sept 2023 500 14,691 1,138 197 (4) 11 2,702 19,235
Unaudited Consolidated Statement of Financial Position as at 30 September
2023
As at As at As at
30 September 30 September 31 March
2023 2022 2023
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Intangible assets 10 23,397 23,277 23,382
Plant, property and equipment 1,125 1,034 1,103
Right of use assets 11 1,994 1,751 1,711
Deferred income tax asset - - -
Amounts receivable under finance leases - 39 4
26,516 26,101 26,200
Current assets
Inventories 2,813 1,352 2,426
Trade and other receivables 6,362 7,158 7,948
Corporation tax receivable 861 1,150 856
Cash and cash equivalents 874 1,174 1,119
10,910 10,834 12,349
Current liabilities
Trade and other payables (8,532) (8,806) (9,196)
Borrowings 12 (5,847) (897) (1,031)
Right of use liability 12 (557) (487) (466)
Provisions - - (74)
(14,936) (10,190) (10,767)
Current assets less current liabilities (4,026) 644 1,582
Total assets less current liabilities 22,490 26,745 27,782
Non-current liabilities
Trade and other payables (474) (474) (828)
Borrowings 12 (213) (6,176) (5,435)
Right of use liability 12 (1,273) (1,258) (1,113)
Provisions (261) (160) (166)
Deferred income tax liability (1,034) (548) (1,111)
(3,255) (8,616) (8,653)
Net assets 19,235 18,129 19,129
Equity
Share capital 13 500 500 500
Share premium 14,691 14,691 14,691
Merger reserve 1,138 1,138 1,138
Translation reserve 197 205 212
Treasury reserve (4) (4) (4)
Convertible loan reserve 11 11 11
Retained earnings 2,702 1,588 2,581
Total equity attributable to owners of the parent 19,235 18,129 19,129
Unaudited Consolidated Cash Flow Statement for the six months to 30
September
2023
Six months to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash generated from operating activities 14 2,349 1,435 4,314
Cash flows from investing activities
Purchases of property, plant and equipment (373) (332) (749)
Proceeds from sale of property, plant and equipment - - -
Purchases of software - (8) (12)
Capitalised Development costs (1,102) (1,447) (2,658)
Net cash used in investing activities (1,475) (1,787) (3,419)
Cash flows from financing activities
New convertible loan note - 1,580 1,580
Loan arrangement fees (42) (13) (36)
Repayment of bank loans (469) (512) (1,095)
Repayment of obligations under lease agreements (229) (324) (619)
Interest paid (379) (209) (610)
Net cash generated from financing activities (1,119) 522 (780)
Net (decrease)/increase in cash and cash equivalents (245) 170 115
Cash and cash equivalents at beginning of period 1,119 1,004 1,004
Cash and cash equivalents at end of period 874 1,174 1,119
1. Basis of preparation
The Group's interim results for the 6 months to 30 September 2023 (prior year
30 September 2022) were approved by the Board of Directors on 23 November
2023.
As permitted this Interim Report has been prepared in accordance with UK AIM
Rules for Companies and not in accordance with IAS 34 "Interim Financial
Reporting" and therefore is not fully in compliance with IFRS.
Trakm8 Holdings PLC ("Trakm8") is a public limited company incorporated in the
United Kingdom under the Companies Act 2006. Trakm8 is domiciled in the United
Kingdom and its ordinary shares are traded on AIM, the market operated by the
London Stock Exchange plc.
The accounting policies adopted in the preparation of the interim financial
statement are the same as those set out in the Group's annual financial
statements for the year ended 31 March 2023. The financial statements have
been prepared on the historical cost basis except for certain liabilities and
share based payment liabilities which are measured at fair value.
The interim financial statements have not been audited or reviewed by Group's
auditors pursuant to the Auditing Practice Board guidance on 'Review of
Interim Financial Information' and do not include all of the information
required for full annual financial statements.
The financial information contained in this report is condensed and does not
constitute statutory accounts of the Group within the meaning of Section
434(3) of the Companies Act 2006. Statutory accounts for the year ended 31
March 2023 have been delivered to the Registrar of Companies. The audit report
of those accounts was unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement under Section 498(2) or (3) of
the Companies Act 2006.
Going concern
The consolidated interim financial statements are prepared on a going concern
basis. The directors report that, having reviewed current performance and
projections of its working capital and long term funding requirements,
including assessments against the covenants agreed with our bank and downward
sensitivity analysis, they are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future, a period of not
less than 12 months from the date of this report. Accordingly, they continue
to adopt the going concern basis in preparing the condensed financial
statements
2. Risks and uncertainties
The Board has considered the principal risks and uncertainties for the
remaining half of the financial year and determined that the risks presented
in the 31 March 2023 Annual Report, described as follows, also remain relevant
to the rest of the financial year: Deteriorating economic climate;
Cyber-attack and data security; Attracting and maintaining high quality
employees; Operating in a fast moving technology industry where we will always
be at risk from new products being launched; Significant operational failure;
Adverse mobile network changes; Access to long term and working capital;
Electronics supply chain under constraint; Business disruption from
communicable diseases. These are detailed on pages 20 to 22 of the 2023 of the
Annual Report, a copy of which is available on the Group's website at
www.trakm8.com. (http://www.trakm8.com/)
3. Segmental Analysis
The chief operating decision maker ("CODM") is identified as the Board. It
continues to define all the Group's trading under the single Integrated
Telematics Technology segment and therefore review the results of the group as
a whole. Consequently all of the Group's revenue, expenses, assets and
liabilities are in respect of one Integrated Telematics Technology segment.
The Board as the CODM review the revenue streams of Integrated Fleet,
Optimisation, Insurance and Automotive Solutions (Solutions) as part of their
internal reporting. Solutions represents the sale of the Group's full vehicle
telematics and optimisation services, engineering services, professional
services and mapping solutions to customers.
A breakdown of revenue within these streams are as follows: Six months to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Solutions: 8,537 9,012 20,197
Fleet and optimisation 4,908 4,828 11,475
Insurance and automotive 3,629 4,184 8,722
4. Other income Six months to 30 September Six months to 30 September Year to 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Grant income - 16 16
- 16 16
5. Profit/(Loss) per ordinary share attributable to the owners of the
parent
Six months to 30 September Six months to 30 September Year to 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(Loss) attributable to the owners of the parent 94 (1,775) (774)
6. Adjusted profit/(loss) before tax
Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as
follows:
Profit/(Loss) Before Tax 13 (2,413) (1,243)
Exceptional costs 94 1,319 1,533
Share based payments 12 17 16
Adjusted profit/(loss) before tax 119 (1,077) 306
7. Exceptional costs
Six months to 30 September Six months to 30 September Year to 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Exceptional cost of sales
Covid-19 - component acquisition - - 261
- - 261
Exceptional administrative costs
Integration and restructuring costs 94 902 234
Covid-19 costs - 417 1,038
94 1,319 1,272
94 1,319 1,533
The integration and restructuring costs in the current year relate to the
Group's decision last year to implement a change in strategy to focus on the
Insurance, Automotive and Optimisation sectors. These costs include final
amounts implementing various cost reductions including professional fees.
Detailed explanation of prior year exceptional costs are detailed on page 66
of the 2023 Annual Report, a copy of which is available on the Group's website
at www.trakm8.com. (http://www.trakm8.com/)
8. Finance costs
Six months to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Interest on bank loans 339 200 510
Amortisation of debts issue costs 52 30 58
Interest on Hire Purchase and similar agreements 51 38 100
442 268 668
9. Earnings Per Ordinary Share
The earnings per Ordinary share have been calculated in accordance with IAS 33
using the profit for the period and the weighted average number of Ordinary
shares in issue during the period as follow:
Six months to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
Profit/(Loss) the year after taxation 109 (1,777) (783)
Exceptional administrative costs 94 1,319 1,533
Share based payments 12 17 16
Tax effect of adjustments (24) (251) (291)
Adjusted Profit/(Loss) after taxation 191 (692) 475
No. '000 No. '000 No. '000
50,004 50,004 50,004
Number of Ordinary shares of 1p each
Basic weighted average number of Ordinary shares of 1p each 50,004 50,004 50,004
Diluted weighted average number of Ordinary shares of 1p each 50,004 50,004 50,004
Basic earnings/(loss) per share 0.22p (3.55p) (1.57p)
Diluted earnings/(loss) per share 0.22p (3.55p) (1.57p)
Adjust for effects of: Exceptional costs
0.14p 2.14p 2.48p
Share based payments 0.02p 0.03p 0.03p
Adjusted basic earnings/(loss) per share 0.38p (1.37p) 0.95p
Adjusted diluted earnings/(loss) per share 0.38p (1.37p) 0.95p
10. Intangible assets
Goodwill Intellectual property Customer Relationships Development Costs Software Total
Cost £'000 £'000 £'000 £'000 £'000 £'000
As at 31 March 2022 10,417 1,920 100 22,153 1,807 36,397
Additions - Internal development - - - 1,282 - 1,282
Additions - External purchases - - - 165 8 173
As at 30 September 2022 10,417 1,920 100 23,600 1,815 37,852
Additions - Internal development - - - 1,038 - 1,038
Additions - External purchases - - - 173 4 177
As at 31 March 2023 10,417 1,920 100 24,811 1,819 39,067
Additions - Internal development - - - 1,011 - 1,011
Additions - External purchases - - - 91 - 91
As at 30 September 2023 10,417 1,920 100 25,913 1,819 40,169
Amortisation
As at 31 March 2022 - 1,920 100 9,917 1,448 13,385
Charge for period - - - 1,085 105 1,190
As at 30 September 2022 - 1,920 100 11,002 1,553 14,575
Charge for period - - - 1,040 70 1,110
As at 31 March 2023 - 1,920 100 12,042 1,623 15,685
Charge for period - - - 1,053 34 1,087
As at 30 September 2023 - 1,920 100 13,095 1,657 16,772
Net book amount
As at 30 September 2023 10,417 - - 12,818 162 23,397
As at 31 March 2023 10,417 - - 12,769 196 23,382
As at 30 September 2022 10,417 - - 12,598 262 23,277
As at 31 March 2022 10,417 - - 12,236 359 23,012
11. Right of use assets
Furniture,
fixtures
Leased buildings and equipment Computer equipment Motor vehicles
Software Total
COST £'000 £'000 £'000 £'000 £'000 £'000
As at 31 March 2022 2,098 551 406 612 - 3,667
Additions - - - - - -
Disposals - - - - - -
As at 30 September 2022 2,098 551 406 612 - 3,667
Additions - 32 96 91 - 219
Disposals - - - (96) - (96)
As at 31 March 2023 2,098 583 502 607 - 3,790
Additions - - 214 308 - 522
Disposals - - - (358) - (358)
As at 30 September 2023 2,098 583 716 557 - 3,954
AMORTISATION
As at 31 March 2022 794 194 234 413 - 1,635
Charge for period 133 35 36 77 - 281
Disposals - - - - - -
As at 30 September 2022 927 229 270 490 - 1,916
Charge for period 132 35 37 55 - 259
Disposals - - - (96) - (96)
As at 31 March 2023 1,059 264 307 449 - 2,079
Charge for period 115 36 40 48 - 239
Disposals - - (358) - (358)
As at 30 September 2023 1,174 300 347 139 - 1,960
Net book amount
As at 30 September 2023 924 283 369 418 - 1,994
As at 31 March 2023 1,039 319 195 158 - 1,711
As at 30 September 2022 1,171 322 136 122 - 1,751
As at 31 March 2022 1,304 357 172 199 - 2,032
12. Borrowings
As at 30 September 2023 As at September 2022 As at 31 March 2023
Current Non-current Current Non-current Current Non-Current
£'000 £'000 £'000 £'000 £'000 £'000
Borrowings 4,273 213 897 4,602 1,031 3,861
Convertible unsecured loan note 1,574 - - 1,574 - 1,574
Right of use liability 557 1,273 487 1,258 466 1,113
Totals 6,404 1,486 1,384 7,434 1,497 6,548
All borrowings are held in sterling and the Directors consider their carrying
amount approximates to their fair values. Borrowings comprise of the following
loans:
A £5.3m term loan with HSBC. The loan is secured by a fixed and floating
charge on all the assets of the Group. It is repayable by 17 monthly
instalments from 30 March 2023 of £86,000 and a final repayment of the
outstanding balance on 31 July 2024 and bears interest at a floating rate of
5.1% over base rate. As at 30 September 2023 the Group owed £3.9m (March-23:
£4.1m).
A £0.5m overdraft facility with HSBC. The overdraft facility bears an
interest rate of 5.3% over LIBOR on the drawn amount. As at 30 September 2023
the Group had not used this overdraft facility.
A £1.5m growth capital loan with MEIF WM Debt LP. The loan bears a fixed
interest rate of 8% per annum and is repayable in 15 quarterly instalments
commencing 30 September 2021. The loan is secured by a secondary fixed and
floating charge on all the assets of the Group. As at 30 September 2023 the
Group owed £590K (March-23: £975K).
A £1.6m convertible unsecured loan note. The loan bears a fixed interest rate
of 12% per annum, with a two-year term from its issue date 14 September 2022.
The interest is payable quarterly from issue date until repayment on 13
September 2024. The Loan Note is convertible at a conversion price of 17.10p,
a ten percent discount to the closing mid-market price of a Trakm8 ordinary
share on 13 September 2022, the last practicable date prior to its completion.
The Group's obligations under right of use assets are secured by the lessors'
title to the leased assets. Obligations under right of use assets by category
at 30 September 2023 were as follows:
Furniture, Total
fixtures
Freehold property and equipment Computer equipment
Motor Software
vehicles
£'000 £'000 £'000 £'000 £'000 £'000
Current 238 25 143 146 7 559
Non-current 791 13 195 272 0 1271
Total 1,029 38 338 418 7 1,830
The maturity of obligations under right of use assets as at 30 September 2023
were as follows:
Furniture,
fixtures
Freehold property and equipment Computer equipment
Motor vehicles Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Within 1 year 238 25 143 146 7 559
1 to 2 years 246 9 96 147 - 498
2 to 5 years 380 4 99 125 - 608
More than 5 years 165 - - - - 165
Total 1,029 38 338 418 7 1,830
13. Share Capital
A As at September 2023 As at 30 September 2022 As at 31 March
2023
No's No's No's
000's £'000 000's £'000 000's £'000
Authorised:
Ordinary shares of 1p each 200,000 2,000 200,000 2,000 200,000 2,000
Allotted, issued and fully paid:
Ordinary shares of 1p each 50,004 500 50,004 500 50,004 500
Movement in share capital: £'000
As at 1 April 2022 500
As at 30 September 2022 500
As at 31 March 2023 500
As at 30 September 2023 500
The Company currently holds 29,000 Ordinary shares in treasury representing
0.06% (March-22: 0.06%) 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 49,975,002.
14. Cash Generated from Operations
Six months to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Net profit/(loss) before 13 (2,413) (1,243)
taxation
Depreciation 381 384 767
(Profit)/Loss on disposal of fixed 209 88 222
assets
Net bank and other 429 239 618
interest
Exceptional 94 1,319 1,533
costs
Amortisation of intangible asset 1,087 1,190 2,300
Exchange movements (15) 2 9
Share based 12 17 16
payments
Operating cash flows before movement in working capital 2,210 826 4,222
Movement in inventories (387) (30) (1,104)
Movement in trade and other receivables 1,590 774 19
Movement in trade and other payables (1,018) 1,133 1,877
Movement in 21 21 101
provisions
Cash generated from operations before exceptional costs 2,416 2,724 5,115
Cash outflow from exceptional costs (94) (1,319) (1,533)
Cash generated from operations 2,322 1,405 3,582
Interest 13 29 50
received
Income taxes 14 1 682
received
Net cash-inflow from operating activities 2,349 1,435 4,314
Income taxes received are in relation to funds received in relation to
Research and Development activities.
15. Further Copies
This statement, full text of the Stock Exchange announcement and the results
presentation can be found on the Group's website www.trakm8.com
(http://www.trakm8.com/) and also from the registered office of Trakm8
Holdings PLC. The address of the registered office is: Roman Way, Roman Park,
Coleshill, North Warwickshire, B46 1HG.
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