REG - Trakm8 Holdings PLC - Half Year Results and Director Change
16/11/2021 07:05
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RNS Number : 4551S Trakm8 Holdings PLC 16 November 2021
16 November 2021
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Half Year Results and Director Change
Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight
provider, announces its unaudited results for the six months ended 30
September 2021:
Financial Highlights
6 months to 6 months to Year to 31 Change
30 Sept 2021 30 Sept 2020 March 2021
Unaudited Unaudited Audited
£000 £000 £000
Revenue 9,021 7,321 15,961 +23%
of which, recurring revenue(1) 4,806 4,635 9,379 +4%
Profit/(Loss) before tax 47 (845) (1,867) +106%
Adjusted Profit/(Loss) before tax(2) 444 (314) (342) +241%
Profit/(Loss) after tax 273 (732) (1,237) +137%
Cash generated from operations 868 2,055 4,737 -58%
Net Debt(3) 6,157 5,574 4,887 +10%
Basic earnings per share 0.13p (1.46p) (2.47p) +108%
Adjusted basic earnings per share 0.81p (0.56p) 0.07p +244%
1 Recurring revenues are generated from ongoing 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 2021 results:
o 23% growth in revenues
o Return to profitability
o Gross margins improved due to higher proportion of software revenues
o Underlying overheads benefitting from previous years' actions
o Reduced cash generation from operations despite significant reduction in
losses, as PAYE & VAT time to pay arrangements were met
· Continuation of new contract wins:
o New telematics contract awards with a wide range of smaller Fleet and
Insurance customers
o Approximately 255,000 connections (March 2021: 254,000 connections), an
increase of 1,000 connections, (0.4%) in the six month period since last year
end.
· Continuation of contract renewals:
o Strong period of contract renewals in the Fleet business.
· H2 and FY2023 outlook:
o Insurance telematics policy sales plateau due to high backlog of driving
tests and cost of second hand cars only modestly improving due to new
insurance clients' launches
o Several new Insurance customers launching during H2 but mainly impact
FY2023 and beyond
o Backlog of driving tests expected to diminish in FY2023, improving demand
o Strong level of orders, post period, from existing and new Fleet customers
Outlook
Despite additional costs associated with mitigating supply chain challenges
and expected significant component price increases, the Board remains
confident that for the full year ending 31(st) March 2022, the Group will be
slightly ahead of current market expectations on all profit measures. It is
expected that this will be achieved on lower than previously expected revenues
of circa £18m due to softening of the telematics insurance market.
- Ends -
For further information:
Trakm8 Holdings plc
John Watkins, Executive Chairman Tel: +44 (0) 167 543 4200
Jon Edwards, CFO www.trakm8.com (http://www.trakm8.com)
Arden Partners plc (Nominated Adviser & Broker) Tel: +44 (0) 20 7614 5900
Paul Shackleton, Head of Corporate Finance www.arden-partners.com (http://www.arden-partners.com)
Simon Johnson, Head of Sales
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 255,000 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, Parts Alliance, Direct
Line Group, ByMiles and Ingenie.
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 results for the six months ended 30 September
2021.
The first half of the financial year was a significant improvement on the
previous year and ahead of recent Company guidance. Revenues for the six
months ending 30 September 2021 increased by 23% over the corresponding period
of the previous year to £9.02m.
There was an increase of £1.29m (29%) in Fleet and Optimisation revenues to
£5.7m and an increase in Insurance and Automotive revenues of £0.41m (14%)
to £3.31m.
The Group is reporting a significant improvement in trading with a return to
profitability with Group adjusted profit of £0.44m (2020: loss £0.31m),
Profit before Tax of £0.05m (2020: Loss £0.85) and Profit after Tax of
£0.27m (2020: loss £0.73m).
During the period, connections increased by 0.5% to 255,000 (31.3.2021:
254,000). Fleet connections were static at 70,000 (31.3.21: 70,000), Insurance
& Automotive connections increased 0.7% to 185,000 (31.3.21: 184,000).
In the last few months of the period we saw a recovery in the fleet numbers
but there has been little recovery in the insurance market as difficulties
with new drivers taking tests and the increased cost of second hand cars.
The Recurring Revenues in the period increased over the previous year by 4% to
£4.81m and represent 53% of Group revenues. In addition, the Group generated
£0.98m of software revenues (H1 2020: £0.30m), which represent 11% of Group
revenues.
The Group has incurred £0.13m in additional costs to mitigate the impact of
Covid-19 on the electronic component supply chain but has maintained supplies
to customers without significant interruptions. In the last few months we have
seen significant price increases in certain components and we expect this to
continue for the balance of the year. We have worked hard to avoid disruption
of our supply chain but there remains an ever present risk.
Gross profit margin has improved to 65% (2020: 62%). This is despite the
higher hardware revenues as a percentage of sales and the impact of Covid-19.
The improvement in margin is due to higher software sales during the period.
Total overhead costs, excluding exceptional costs, increased by £0.47m to
£5.27m (H1 2020: £4.80m). This is the result of £0.16m increase in
depreciation & amortisation, a £0.15m increase in marketing spend and
reduced furlough support of £0.38m. Underlying payroll costs further
reduced overall by £0.16m. Exceptional costs reduced significantly during the
period to £0.30m, and included furloughed employees costs of £0.20m net of
£0.18m Government payments and £0.11m of other costs. Share based payments
remained consistent compared to the previous year at £0.91m (H1 2020:
£0.89m)
Financial position
Cash generation from operations has been £0.87m (H1 FY-2020: £2.06m) and at
30 September 2021 the Group net debt excluding the impact of the IFRS16 lease
liability was £6.16m (£7.88m including IFRS 16 liability) which is £1.27m
higher than as at 31 March 2021. The HMRC time to pay liability reduced by
£0.94m. H1 FY21 benefitted from agreeing with the Revenue authorities to
delay payments of £0.7m into FY22 and FY23. At the 30 September 2021 the
Group had £0.89m of cash on hand and a further £0.50m of available funds
under an overdraft facility.
The overall cash outflow for the period was £1.48m (H1 2020: outflow of
£0.12m).
Strategy
The Group has been following the strategy outlined in the 2021 Annual Report.
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 the growth of our business through more
connections, increased device sales and higher service fees. Due to the high
level of new contract wins across the business and reduced rates of attrition
in Fleet, the number of connections have increased overall by 0.8% in the past
12 months and by 0.4% in past 6 months. The number of devices sold has
increased by 30% to 64,000 (H1 2020: 49,000).
Trakm8 has focused on delivering market leading technology and ensuring that
the solutions are generating the best possible ROI's for our customers. We
have maintained the levels of expenditure in R&D. We will continue to own
the majority of IP in our value chain. We have focused on building out greater
functionality of existing solutions rather than a wider range. We have focused
on using AI to maximise value in our algorithms in risk, crash and video
analysis. We have obtained very exciting results from this and are receiving
positive interest from customers as a result.
Our third strategy has been to improve the efficiencies of our business in
every possible way. We have been successful in maintaining similar operating
overheads level like for like before the impact of the furlough support,
despite salary inflation and higher marketing costs. We will continue to seek
efficiencies as we go forward.
Director Resignation
Peter Mansfield, Trakm8 Group Sales and Marketing Director, has resigned from
the Board of Directors with immediate effect. Paul Wilson who had previously
been Group Sales and Marketing Director will be assuming responsibilities for
Fleet Sales and Marketing.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the six months to
30 September 2021
Six months to 30 September Six months to 30 September Year to
31 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Revenue 3 9,021 7,321 15,961
Cost of sales (3,177) (2,804) (6,643)
Gross profit 5,844 4,517 9,318
Other income 4 13 103 194
Administrative expenses excluding exceptional costs (5,262) (4,800) (9,585)
Exceptional administrative costs 7 (306) (442) (1,342)
Total administrative costs (5,568) (5,242) (10,927)
Operating profit/(loss) 289 (622) (1,415)
Finance income 32 39 78
Finance costs 8 (274) (262) (530)
Profit/(Loss) before taxation 47 (845) (1,867)
Income tax 226 113 630
Profit/(Loss) for the period 273 (732) (1,237)
Other Comprehensive Income
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translation of foreign operations 4 5 (3)
Total other comprehensive income 4 5 (3)
Total Comprehensive Profit/(Loss) for the period attributable to owners of the 5 277 (727) (1,240)
parent
6 47 (845) (1,867)
Profit/(Loss) before taxation
Exceptional administrative costs 306 442 1,342
IFRS2 Share based payments charge 91 89 183
Adjusted profit/(loss) before tax 444 (314) (342)
Earnings per ordinary share (pence) attributable to owners of the Parent
Basic 9 0.55 (1.46) (2.47)
Diluted 9 0.55 (1.46) (2.47)
The results relate to continuing operations.
Unaudited Consolidated Statement of Changes in Equity for the six months to 30
September 2021
Share capital Share premium Merger reserve Translation reserve Treasury reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 April 2020 500 14,691 1,138 196 (4) 4,658 21,179
Comprehensive income
Loss for the period - - - - - (732) (732)
Other comprehensive income
Exchange differences on translation of overseas operations - - - 5 - - 5
Total comprehensive income - - - 5 - (732) (727)
Transactions with owners
IFRS 2 Share-based payments - - - - - 89 89
Transactions with owners - - - - - 89 89
Balance as at 30 Sept 2020 500 14,691 1,138 201 (4) 4,015 20,541
Comprehensive income
Loss for the period - - - - - (505) (505)
Other comprehensive income
Exchange differences on translation of overseas operations - - - (8) - - (8)
Total comprehensive income - - - (8) - (505) (513)
Transactions with owners
IFRS2 Share-based payments - - - - - 94 94
Transactions with owners - - - - - 94 94
Balance as at 31 March 2021 500 14,691 1,138 193 (4) 3,604 20,122
Comprehensive income
Profit for the period - - - - - 273 273
Other comprehensive income
Exchange differences on translation of overseas operations - - - 4 - - 4
Total comprehensive income - - - 4 - 273 277
Transactions with owners
IFRS2 Share based payments - - - - - 91 91
Transactions with owners - - - - - 91 91
Balance as at 30 Sept 2021 500 14,691 1,138 197 (4) 3,968 20,490
Unaudited Consolidated Statement of Financial Position as at 30 September 2021
As at 30 September As at 30 September As at 31 March
2021 2020 2021
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Intangible assets 10 22,568 22,230 22,187
Plant, property and equipment 911 831 891
Right of use assets 11 2,187 2,838 2,512
Deferred income tax asset - - -
Amounts receivable under finance leases 39 65 50
25,705 25,964 25,640
Current assets
Inventories 1,368 1,701 1,409
Trade and other receivables 7,301 7,171 6,679
Corporation tax receivable 1 317 690
Cash and cash equivalents 888 1,541 2,370
9,558 10,730 11,148
Current liabilities
Trade and other payables (5,339) (5,574) (5,417)
Borrowings 12 (1,140) (5,417) (855)
Right of use liability 12 (708) (679) (680)
Provisions - (26) (27)
(7,187) (11,696) (6,979)
Current assets less current liabilities 2,371 (966) 4,169
Total assets less current liabilities 28,076 24,998 29,809
Non-current liabilities
Trade and other payables (474) (593) (1,546)
Borrowings 12 (5,386) (1,231) (5,815)
Right of use liability 12 (1,459) (1,941) (1,767)
Provisions (151) (179) (190)
Deferred income tax liability (116) (513) (369)
(7,586) (4,457) (9,687)
Net assets 20,490 20,541 20,122
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 197 201 193
Treasury reserve (4) (4) (4)
Retained earnings 3,968 4,015 3,604
Total equity attributable to owners of the parent 20,490 20,541 20,122
Unaudited Consolidated Cash Flow Statement for the six months to 30 September
2021
Six months to Six months to Year to
30 September 30 September 31 March
2021 2020 2021
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash generated from operating activities 14 868 2,055 4,737
Cash flows from investing activities
Purchases of property, plant and equipment (230) (183) (330)
Purchases of software (2) (24) (47)
Capitalised Development costs (1,396) (1,220) (2,290)
Net cash used in investing activities (1,628) (1,427) (2,667)
Cash flows from financing activities
New bank loan - - 5,300
Loan arrangement fees - - (86)
Repayment of bank loans (168) (171) (5,379)
Repayment of obligations under lease agreements (280) (344) (670)
Interest paid (274) (237) (530)
Net cash generated from financing activities (722) (752) (1,365)
Net (decrease)/increase in cash and cash equivalents (1,482) (124) 705
Cash and cash equivalents at beginning of period 2,370 1,665 1,665
Cash and cash equivalents at end of period 888 1,541 2,370
Notes To The Unaudited Consolidated Financial Statements
1. Basis of preparation
The Group's interim results for the 6 months to 30 September 2021 (prior year
30 September 2020) were approved by the Board of Directors on 15 November
2021.
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 2021. 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 2021 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 risk presented in
the 31 March 2021 Annual Report, described as follows, also remain relevant to
the rest of the financial year: Significant operational system failure;
Cyber-attack and data security; Operating in a fast-moving technology industry
where we will always be at risk from new products being launched; Adverse
mobile network changes; Attracting and maintaining high-quality employees;
Access to long term and working capital; Electronic supply chain materially
impacted by Covid-19 and Rate of economic recovery post Covid-19. These are
detailed on pages 18 to 20 of the 2021 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
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Solutions: 9,021 7,321 15,961
Fleet and optimisation 5,712 4,419 9,520
Insurance and automotive 3,309 2,902 6,441
Notes To The Unaudited Consolidated Financial Statements
4. Other income
Six months to Six months to Year to
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Grant income 13 103 194
13 103 194
5. Profit/(Loss) per ordinary share attributable to the owners of the
parent
Six months to Six months to Year to
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(Loss) attributable to the owners of the parent 277 (727) (1,240)
6. Adjusted profit/(loss) before tax
Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as
follows:
Profit/(Loss) Before Tax 47 (845) (1,867)
Exceptional administrative costs 306 442 1,342
Share based payments 91 89 183
Adjusted profit/(loss) before tax 444 (314) (342)
7. Exceptional costs
Six months to Six months to Year to
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Integration and restructuring costs 45 97 168
Covid-19 costs 446 891 2,109
Furlough grant income (185) (546) (935)
306 442 1,342
The integration and restructuring costs in the current year relate to an
ongoing project to streamline and rationalise the operations of the business.
The Group has also incurred exceptional costs relating to the Covid-19
pandemic. These costs mainly relate to the cost of employees whilst on
furlough £385,000 (Mar-21: £1,607,000, Sep-20: £767,000).
Furlough grant income relates to other income received from the Coronavirus
Job Retention Scheme for employees furloughed as a result of Covid-19.
Detailed explanation of prior year exceptional costs are detailed on page 60
of the 2021 Annual Report, a copy of which is available on the Group's website
at www.trakm8.com (http://www.trakm8.com) .
Notes To The Unaudited Consolidated Financial Statements
8. Finance costs
Six months to Six months to Year to
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Interest on bank loans 198 191 373
Amortisation of debts issue costs 24 21 37
Interest on Hire Purchase and similar agreements 52 50 120
274 262 530
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
2021 2020 2021
Unaudited Unaudited Audited
Profit/(Loss) the year after taxation 273 (732) (1,237)
Exceptional administrative costs 306 442 1,342
Share based payments 91 89 183
Tax effect of adjustments (58) (84) (255)
Adjusted profit/(loss) after taxation 612 (285) 33
No. No. No.
'000 '000 '000
Number of Ordinary shares of 1p each 50,004 50,004 50,004
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 50,079 50,004 50,004
Basic earnings/(loss) per share 0.55p (1.46p) (2.47p)
Diluted earnings/(loss) per share 0.55p (1.46p) (2.47p)
Adjust for effects of:
Exceptional costs 0.50p 0.72p 2.17p
Share based payments 0.18p 0.18p 0.37p
Adjusted basic earnings/(loss) per share 1.22p (0.56p) 0.07p
Adjusted diluted earnings/(loss) per share 1.22p (0.56p) 0.07p
Notes To The Unaudited Consolidated Financial Statements
10. Intangible Assets
Goodwill Intellectual property Customer Relationships Development costs Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
As at 31 March 2020 10,417 1,920 100 17,190 1,903 31,530
Additions - Internal development - - - 1,200 - 1,200
Additions - External purchases - - - 20 24 44
As at 30 September 2020 10,417 1,920 100 18,410 1,927 32,774
Additions - Internal development - - - 919 - 919
Additions - External purchases - - - 151 23 174
Impairments - - - - (155) (155)
Disposals - - - (238) (36) (274)
As at 31 March 2021 10,417 1,920 100 19,242 1,759 33,438
Additions - Internal development - - - 1,214 - 1,214
Additions - External purchases - - - 182 2 184
As at 30 September 2021 10,417 1,920 100 20,638 1,761 34,836
Amortisation
As at 31 March 2020 - 1,910 100 6,479 1,044 9,533
Charge for period - 10 - 867 134 1,011
As at 30 September 2020 - 1,920 100 7,346 1,178 10,544
Charge for period - - - 866 115 981
Disposals - - - (238) (36) (274)
As at 31 March 2021 - 1,920 100 7,974 1,257 11,251
Charge for period - - - 924 93 1,017
As at 30 September 2021 - 1,920 100 8,898 1,350 12,268
Net book amount
As at 30 September 2021 10,417 - - 11,740 411 22,568
As at 31 March 2021 10,417 - - 11,268 502 22,187
As at 30 September 2020 10,417 - - 11,064 749 22,230
As at 31 March 2020 10,417 10 - 10,711 859 21,997
Notes To The Unaudited Consolidated Financial Statements
11. Right of use assets
Leased buildings Furniture, fixtures and equipment Computer equipment Motor vehicles Software Total
COST £'000 £'000 £'000 £'000 £'000 £'000
As at 1 April 2020 2,098 509 175 619 153 3,554
Additions - - 76 79 - 155
Disposals - - - (10) - (10)
As at 30 September 2020 2,098 509 251 688 153 3,699
Additions - 42 99 - - 141
Impairments - - - - (153) (153)
Disposals - - - (73) - (73)
As at 31 March 2021 2,098 551 350 615 - 3,614
Additions - - - - - -
Disposals - - - (25) - (25)
As at 30 September 2021 2,098 551 350 590 - 3,589
AMORTISATION
As at 1 April 2020 264 49 62 175 - 550
Charge for period 132 46 16 117 - 311
Disposals - - - - - -
As at 30 September 2020 396 95 78 292 - 861
Charge for period 133 29 42 110 - 314
Disposals - - - (73) - (73)
As at 31 March 2021 529 124 120 329 - 1,102
Charge for period 133 35 57 100 - 325
Disposals - - - (25) - (25)
As at 30 September 2021 662 159 177 404 - 1,402
Net book amount
As at 30 September 2021 1,436 392 173 186 - 2,187
As at 31 March 2021 1,569 427 230 286 - 2,512
As at 30 September 2020 1,702 414 173 396 153 2,838
As at 31 March 2020 1,834 460 113 444 153 3,004
Notes To The Unaudited Consolidated Financial Statements
12. Borrowings
As at 30 September 2021 As at 30 September As at 31 March
2020
2021
Current Non-Current Current Non-Current Current Non-Current
£'000 £'000 £'000 £'000 £'000 £'000
Borrowings 1,140 5,386 5,417 1,231 855 5,815
Right of use liability 708 1,459 679 1,941 680 1,767
Totals 1,848 6,845 6,096 3,172 1,535 7,582
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 22 monthly
instalments from 30 September 2021 of £86,000 and a final repayment of the
outstanding balance on 31 October 2023 and bears interest at a floating rate
of 5.1% over base rate. As at 30 September 2021 the Group owed £5.2m
(March-21: £5.3m).
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 2021
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 2021 the
Group owed £1.4m (March-21: £1.5m).
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 2021 were as
follows:
Freehold property Furniture, fixtures and equipment Computer equipment Motor vehicles Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Current 296 90 109 147 66 708
Non-current 1,235 70 85 42 27 1,459
Total 1,531 160 194 189 93 2,167
The maturity of obligations under right of use assets as at 30 September 2021
were as follows:
Freehold property Furniture, fixtures and equipment Computer equipment Motor vehicles Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Within 1 year 296 90 109 147 66 708
1 to 2 years 280 66 63 42 27 478
2 to 5 years 750 4 22 0 - 776
More than 5 years 205 - - - - 205
Total 1,531 160 194 189 93 2,167
Notes To The Unaudited Consolidated Financial Statements
13. Share Capital
As at 30 September 2021 As at 30 September 2020 As at 31 March
2021
No's No's No's
000's £'000 000's £'000 000's £'000
Authorised:
Ordinary shares of 1p each 200,000 200,000 200,000 200,000 200,000 200,000
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 2020 500
As at 30 September 2020 500
As at 31 March 2021 500
As at 30 September 2021 500
The Company currently holds 29,000 Ordinary shares in treasury representing
0.06% (Mar-21: 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
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Net profit/(loss) before taxation 47 (845) (1,867)
Depreciation 535 380 781
Loss on disposal of fixed assets - - 318
Amortisation of intangible assets 1,017 1,011 1,992
Exchange movements 4 - (3)
Interest received (32) (39) (78)
Bank and other interest charges 298 262 565
Share based payments 91 89 183
Operating cash flows before movement in working capital 1,960 858 1,891
Movement in inventories 41 342 634
Movement in trade and other receivables (611) 659 1,166
Movement in trade and other payables (1,150) (726) 70
Movement in provisions (66) 21 33
Cash generated from operations 174 1,154 3,794
Interest received 32 39 78
Income taxes received 662 862 865
Net cash-inflow from operating activities 868 2,055 4,737
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 and also from
the registered office of Trakm8 Holdings PLC. The address of the registered
office is: 4 Roman Park, Roman Way, Coleshill, North Warwickshire, B46 1HG.
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