REG - Trakm8 Holdings PLC - Half Year Results
08/12/2022 07:01
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RNS Number : 9755I Trakm8 Holdings PLC 08 December 2022
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.
8 December 2022
TRAKM8 HOLDINGS PLC
("Trakm8", "Company" 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 2022:
Financial Highlights
6 months to 6 months to Year to 31
30 Sept 2022 30 Sept 2021 March 2022
Unaudited Unaudited Audited
£000 £000 £000
Revenue 9,012 9,021 18,111
of which, recurring revenue(1) 5,076 4,806 9,806
Profit/(Loss) before tax (2,413) 47 (122)
Profit/(Loss) after tax (1,775) 273 187
Adjusted Profit/(Loss) before tax(2) (1,077) 444 3
Cash generated from operating activities 1,435 868 3,810
Net Debt(3) 6,243 6,157 5,395
Basic earnings (loss) per share (3.55p) 0.55p 0.37p
Adjusted basic earnings (loss) per share (1.38p) 1.22p 0.41p
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 2022 results:
o Revenues maintained despite challenging macroeconomic conditions
o Profit impacted by:
§ Lower software sales compared to prior period
§ Higher material costs
§ Exceptional costs from our strategic refocus and cost reduction programme
o Improved cash generation from operations despite losses
· Continuation of new contract wins:
o New telematics contract awards with Insurance customers
o Approximately 299,000 connections (September 2021: 255,000 connections),
an increase of 44,000 connections (17%) in the last 12 months
· H2 and FY2024 outlook:
o Significant reduction in overhead costs in line with the Company's trading
and strategy update announced on 14 September 2022
o Benefit of higher connected base increasing recurring service fee income
o Several new Insurance customers launching during H2 but mainly impacting
revenues in FY2024 and beyond
o Large software contract renewal before the financial year end
Outlook
The Board is confident that the improved trading as a result of reduced costs,
increased service fees and software contract license sales will ensure the
Group meets current market expectations for revenues and adjusted profit.
- 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, 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 299,000 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
I report Trakm8's results for the six months ended 30 September 2022.
Revenues
The first half of the financial year was in line with recent Company guidance.
Revenues for the six months ended 30 September 2022 were similar to the
corresponding period in the previous year at £9.01m.
There was a 26% increase in Insurance and Automotive revenues to £4.18m and a
reduction of 15% in Fleet and Optimisation revenues to £4.83m
During the period, unit sales increased by 61% to 103,000, with Insurance unit
sales increasing by 118% to 90,000 and Fleet unit sales decreasing by 9% to
8,000.
In addition, during the period, connections increased by 13% to 299,000
(31.3.2022: 264,000). Insurance & Automotive connections increased 16% to
225,000 (31.3.22: 193,000). With low attrition experienced, Fleet connections
increased by 4% to 74,000 (31.3.22: 71,000).
Recurring revenues in the period increased over the previous year by 5% to
£5.08m and represent 56% of Group revenues. In addition, the Group generated
£0.17m of software revenues (H1 2020: £0.98m), which represented 2% of Group
revenues. In line with the Company's announcement on 14 September 2022, the
timing of contract renewals has resulted in the bulk of this year's software
sales taking place in H2.
Costs
The Group has encountered a number of challenges as a result of the
availability of production components during the period. Notwithstanding this,
with our integrated engineering and manufacturing teams we have maintained
supplies to customers without significant interruptions. The Board expects
that supply chain constraints will significantly ease going forward. However,
in order to achieve customer deliveries on time, considerable exceptional
hardware costs of circa £0.21m were incurred by the Group during the period.
The Group's gross profit margin has reduced to 58% (2021: 65%). This is due to
the higher hardware revenues as a percentage of sales and the reduction in
software sales during the period.
Total overhead costs, excluding exceptional costs, increased by £0.84m to
£6.10m (H1 2021: £5.26m). This is the result of reduced furlough support
of £0.39m, a £0.28m increase in real estate and IT costs and a £0.07m
increase in non-payroll sales & marketing spend. Underlying payroll costs
further reduced overall by £0.01m despite inflationary pressures.
Exceptional costs increased during the period to £1.32m. This reflects
£0.90m of cost associated with the strategic refocus, £0.21m in additional
costs to mitigate the impact of post Covid-19 electronic component supply
chain challenges and £0.21m of other costs.
Towards the end of the period, Trakm8 implemented a very substantial reduction
in headcount and overhead costs, which is expected to result in a minimum of
£2.4m annualised reduction in operating costs. This is associated with the
concentration on our more successful markets and products. This action is
largely now complete from which the trading performance should benefit going
forward.
Results
The Group generated an adjusted loss of £1.08m (2021: profit £0.44m), loss
before tax of £2.41m (2021: profit £0.05m) and loss after tax of £1.77m
(2021: £0.27m).
Financial position
Cash generation from operating activities was £1.44m (H1 2021: £0.87m). As
at 30 September 2022, the Group had net bank debt, excluding the Convertible
Loan Note and the impact of the IFRS16 lease liability, of £4.67m (£7.65m
including the Convertible Loan Note and IFRS 16 lease liability) which is
£0.73m less than as at 31 March 2022. As at 30 September 2022, the Group had
£1.17m of cash on hand and a further £0.50m of available funds under an
overdraft facility. In September 2022, the Group completed a funding round by
the issue of £1.58m of Convertible Loan Notes.
The overall cash inflow for the period was £0.29m (H1 2021: outflow of
£1.48m).
Post period end, the Group completed the HMRC repayment schedule ahead of
time, thus eliminating the outstanding liability of £0.9m as at 31 March
2022.
Strategy and Outlook
The Group has been following the strategy outlined in the Group's 2022 Annual
Report and as subsequently modified by the Group's trading update on 14
September 2022. Our focus is to provide ever more meaningful insights to our
customers using the data generated by our installed devices and other
connections in order to ensure that they can run their operations more
efficiently and safely. We have concentrated our focus on our most successful
business revenue streams.
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 has increased overall by 17.2% in the past
12 months and by 13.2% in past six months. The number of devices sold by the
Group has increased by 61% to 103,000 (H1 2021: 64,000). Our focus going
forward will be on the Insurance and Automotive space, and to build our
connected vehicle base along with Enterprise Fleet customers.
Trakm8 has focused on delivering market leading technology and ensuring that
the solutions are generating the best possible ROIs for our customers. To this
point, we have maintained the levels of expenditure on R&D. We continue to
own the majority of IP in our value chain. We have been building out greater
functionality of existing solutions rather than a wider range and have moved
out of the initial development phase of the Insight platform into one of
maturity. We have updated all our devices to utilise the latest technology,
accelerated by the supply constraints of previous components. As a result,
going forward we will meet our objectives of remaining a leading-edge
technology Company but at a substantially lower investment cost.
We are also striving to improve the efficiencies of our business in every
possible way. We have sought to minimise the impact of salary inflation and
higher marketing costs and, towards the end of the period end, undertaken a
very significant reduction in overhead costs as we focus our activities on our
narrower objectives. This should benefit the Group in the second half of
this year and on into future years.
The Group is pleased that it will have several new Insurance customers
launching during the second half of this financial year, albeit the financial
impact of these will mainly occur in FY2024 and beyond. In addition, the
Board is hopeful of a successful outcome to a large software contract renewal
scheduled before the financial year end.
Unaudited management accounts for October and November show a substantial
improvement in profitability as a result of the actions taken by the Group. We
expect this to continue through the remainder of this and next year.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the six months to
30 September 2022
Six months to 30 September Six months to 30 September Year to
31 March
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Revenue 3 9,012 9,021 18,111
Cost of sales (3,786) (3,177) (7,004)
Gross profit 5,226 5,844 11,107
Other income 4 16 13 13
Administrative expenses excluding exceptional costs (6,097) (5,262) (10,193)
Exceptional administrative costs 7 (1,319) (306) (568)
Total administrative costs (7,416) (5,568) (10,761)
Operating profit/(loss) (2,174) 289 359
Finance income 29 32 67
Finance costs 8 (268) (274) (548)
Profit/(Loss) before taxation (2,413) 47 (122)
Income tax 636 226 309
Profit/(Loss) for the period (1,777) 273 187
Other Comprehensive Income
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translation of foreign operations 2 4 10
Total other comprehensive income 2 4 10
Total Comprehensive Profit/(Loss) for the period attributable to owners of the 5 (1,775) 277 197
parent
Profit/(Loss) before taxation 6 (2,413) 47 (122)
Exceptional administrative costs 1,319 306 568
IFRS2 Share based payments charge 17 91 (443)
Adjusted profit/(loss) before tax (1,077) 444 3
Earnings per ordinary share (pence) attributable to owners of the Parent
Basic 9 (3.55) 0.55 0.37
Diluted 9 (3.55) 0.55 0.37
The results relate to continuing operations.
Unaudited Consolidated Statement of Changes in Equity for the six months to 30
September 2022
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 2021 500 14,691 1,138 193 (4) 3,604 20,122
Comprehensive income
Loss 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
IFRS 2 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
Comprehensive income
Loss for the period - - - - - (86) (86)
Other comprehensive income
Exchange differences on translation of overseas operations - - - 6 - - 6
Total comprehensive income - - - 6 - (86) (80)
Transactions with owners
IFRS2 Share-based payments - - - - - (534) (534)
Transactions with owners - - - - - (534) (534)
Balance as at 31 March 2022 500 14,691 1,138 203 (4) 3,348 19,876
Comprehensive income
Profit 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
IFRS2 Share based payments - - - - - 17 17
Convertible loan - 11 - - - - 11
Transactions with owners - 11 - - - 17 28
Balance as at 30 Sept 2022 500 14,702 1,138 205 (4) 1,588 18,129
Unaudited Consolidated Statement of Financial Position as at 30 September 2022
As at 30 September As at 30 September As at 31 March
2022 2021 2022
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Intangible assets 10 23,277 22,568 23,012
Plant, property and equipment 1,034 911 803
Right of use assets 11 1,751 2,187 2,032
Deferred income tax asset - - -
Amounts receivable under finance leases 39 39 27
26,101 25,705 25,874
Current assets
Inventories 1,352 1,368 1,322
Trade and other receivables 7,158 7,301 7,944
Corporation tax receivable 1,150 1 709
Cash and cash equivalents 1,174 888 1,004
10,834 9,558 10,979
Current liabilities
Trade and other payables (8,806) (5,339) (7,521)
Borrowings 12 (897) (1,140) (1,115)
Right of use liability 12 (487) (708) (612)
Provisions - - (27)
(10,190) (7,187) (9,275)
Current assets less current liabilities 644 2,371 1,704
Total assets less current liabilities 26,745 28,076 27,578
Non-current liabilities
Trade and other payables (474) (474) (626)
Borrowings 12 (6,176) (5,386) (4,855)
Right of use liability 12 (1,258) (1,459) (1,367)
Provisions (160) (151) (112)
Deferred income tax liability (548) (116) (742)
(8,616) (7,586) (7,702)
Net assets 18,129 20,490 19,876
Equity
Share capital 13 500 500 500
Share premium 14,702 14,691 14,691
Merger reserve 1,138 1,138 1,138
Translation reserve 205 197 203
Treasury reserve (4) (4) (4)
Retained earnings 1,588 3,968 3,348
Total equity attributable to owners of the parent 18,129 20,490 19,876
Unaudited Consolidated Cash Flow Statement for the six months to 30 September
2022
Six months to Six months to Year to
30 September 30 September 31 March
2022 2021 2022
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash generated from operating activities 14 1,435 868 3,810
Cash flows from investing activities
Purchases of property, plant and equipment (332) (230) (420)
Proceeds from sale of property, plant and equipment - - 125
Purchases of software (8) (2) (48)
Capitalised Development costs (1,447) (1,396) (2,911)
Net cash used in investing activities (1,787) (1,628) (3,254)
Cash flows from financing activities
New convertible loan note 1,580 - -
Loan arrangement fees (13) - (5)
Repayment of bank loans (512) (168) (743)
Repayment of obligations under lease agreements (324) (280) (674)
Interest paid (209) (274) (500)
Net cash generated from financing activities 522 (722) (1,922)
Net (decrease)/increase in cash and cash equivalents 170 (1,482) (1,366)
Cash and cash equivalents at beginning of period 1,004 2,370 2,370
Cash and cash equivalents at end of period 1,174 888 1,004
Notes To The Unaudited Consolidated Financial Statements
1. Basis of preparation
The Group's interim results for the 6 months to 30 September 2022 (prior year
30 September 2021) were approved by the Board of Directors on 7 December 2022.
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 2022. 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 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 2022 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 2022 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; Electronics supply chain constraint
and Business disruption from Covid-19. These are detailed on pages 17 to 19 of
the 2022 Annual Report, a copy of which is available on the Group's website at
www.trakm8.com.
Notes To The Unaudited Consolidated Financial Statements
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 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
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Solutions: 9,012 9,021 18,111
Fleet and optimisation 4,828 5,712 11,217
Insurance and automotive 4,184 3,309 6,894
4. Other income
Six months to Six months to Year to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Grant income 16 13 13
16 13 13
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
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(Loss) attributable to the owners of the parent (1,775) 277 197
6. Adjusted profit/(loss) before tax
Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as
follows:
Profit/(Loss) Before Tax (2,413) 47 (122)
Exceptional administrative costs 1,319 306 568
Share based payments 17 91 (443)
Adjusted profit/(loss) before tax (1,077) 444 3
Notes To The Unaudited Consolidated Financial Statements
7. Exceptional costs
Six months to Six months to Year to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Integration and restructuring costs 902 45 107
Covid-19 costs 417 446 646
Furlough grant income - (185) (185)
1,319 306 568
The integration and restructuring costs in the current year relate to the
Group's recent decision to implement a change in strategy to focus on the
Insurance, Automotive and Optimisation sectors. These costs include the
reduction of headcount in engineering, sales, marketing and associated support
functions and will aid profitability in the year ending 31 March 2024.
The Group incurred exceptional costs in the current and prior financial year
relating to the Covid-19 pandemic.
These costs include the increased cost of temporarily buying raw materials
from auxiliary markets to ensure
continuity of supply of key components which were in constraint due to supply
chain issues caused by the
pandemic. In the prior year, these costs include the costs of employees during
periods of furlough.
Furlough grant income relates to other income received from the Coronavirus
Job Retention Scheme for employees furloughed because of Covid-19.
Detailed explanation of prior year exceptional costs are detailed on page 63
of the 2022 Annual Report, a copy of which is available on the Group's website
at www.trakm8.com.
8. Finance costs
Six months to Six months to Year to
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Interest on bank loans 200 198 388
Amortisation of debts issue costs 30 24 48
Interest on Hire Purchase and similar agreements 38 52 112
268 274 548
Notes To The Unaudited Consolidated Financial Statements
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
2022 2021 2022
Unaudited Unaudited Audited
Profit/(Loss) the year after taxation (1,777) 273 187
Exceptional administrative costs 1,319 306 568
Share based payments 17 91 (443)
Tax effect of adjustments (251) (58) (108)
Adjusted profit/(loss) after taxation (692) 612 204
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 50,057
Basic earnings/(loss) per share (3.55p) 0.55p 0.37p
Diluted earnings/(loss) per share (3.55p) 0.55p 0.37p
Adjust for effects of:
Exceptional costs 2.14p 0.50p 0.92p
Share based payments 0.03p 0.18p (0.89p)
Adjusted basic earnings/(loss) per share (1.38p) 1.22p 0.41p
Adjusted diluted earnings/(loss) per share (1.38p) 1.22p 0.41p
* In the year ended March 2022, the Group awarded Tranch AI with an exercise
price of 16p. This grant is dilutive as the exercise price is less than the
average share price as at the period end.
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 21 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
Additions - Internal development - - - 1,307 46 1,353
Additions - External purchases - - - 208 - 208
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
Amortisation
As at 31 March 21 - 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
Charge for period - - - 1,019 98 1,117
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
Net book amount
As at 30 September 2022 10,417 - - 12,598 262 23,277
As at 31 March 2022 10,417 - - 12,236 359 23,012
As at 30 September 2021 10,417 - - 11,740 411 22,568
As at 31 March 21 10,417 - - 11,268 502 22,187
Notes To The Unaudited Consolidated Financial Statements
11. Right of use assets
Leased buildings Furniture, fixtures and equipment Computer equipment Motor vehicles Total
COST £'000 £'000 £'000 £'000 £'000
As at 31 March 21 2,098 551 350 615 3,614
Additions - - - - -
Disposals - - - (25) (25)
As at 30 September 2021 2,098 551 350 590 3,589
Additions - - 56 94 150
Disposals - - - (72) (72)
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
AMORTISATION
As at 31 March 21 529 124 120 329 1,102
Charge for period 133 35 57 100 325
Disposals - - - (25) (25)
As at 30 September 2021 662 159 177 404 1,402
Charge for period 132 35 57 81 305
Disposals - - - (72) (72)
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
Net book amount
As at 30 September 2022 1,171 322 136 122 1,751
As at 31 March 2022 1,304 357 172 199 2,032
As at 30 September 2021 1,436 392 173 186 2,187
As at 31 March 21 1,569 427 230 286 2,512
Notes To The Unaudited Consolidated Financial Statements
12. Borrowings
As at 30 September 2022 As at 30 September As at 31 March
2021
2022
Current Non-Current Current Non-Current Current Non-Current
£'000 £'000 £'000 £'000 £'000 £'000
Borrowings 897 4,602 1,140 5,386 1,115 4,855
Convertible unsecured loan note - 1,574 - - - -
Right of use liability 487 1,258 708 1,459 612 1,367
Totals 1,384 7,434 1,848 6,845 1,727 6,222
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 2022 the Group owed £4.5m
(March-22: £4.9m).
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 2022
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 2022 the
Group owed £975K (March-22: £1.2m).
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 2022 were as
follows:
Freehold property Furniture, fixtures and equipment Computer equipment Motor vehicles Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Current 203 70 113 74 27 487
Non-current 1073 15 111 52 7 1258
Total 1,276 85 224 126 34 1,745
The maturity of obligations under right of use assets as at 30 September 2022
were as follows:
Freehold property Furniture, fixtures and equipment Computer equipment Motor vehicles Software Total
£'000 £'000 £'000 £'000 £'000 £'000
Within 1 year 203 70 113 74 27 487
1 to 2 years 238 15 70 27 7 357
2 to 5 years 626 - 41 25 - 692
More than 5 years 209 - - - - 209
Total 1,276 85 224 126 34 1,745
Notes To The Unaudited Consolidated Financial Statements
13. Share Capital
As at 30 September 2022 As at 30 September As at 31 March
2021
2022
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 2021 500
As at 30 September 2021 500
As at 31 March 2022 500
As at 30 September 2022 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
penny 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
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Net profit/(loss) before taxation (2,413) 47 (122)
Depreciation 384 535 806
(Profit)/Loss on disposal of fixed assets 88 - 263
Net bank and other interest 239 266 481
Exceptional costs 1,319 306 568
Amortisation of intangible assets 1,190 1,017 2,134
Exchange movements 2 4 10
Share based payments 17 91 (443)
Operating cash flows before movement in working capital 826 2,266 3,697
Movement in inventories (30) 41 87
Movement in trade and other receivables 774 (611) (1,242)
Movement in trade and other payables 1,133 (1,150) 1,184
Movement in provisions 21 (66) (78)
Cash generated from operations before exceptional costs 2,724 480 3,648
Cash outflow from exceptional costs (1,319) (306) (568)
Cash generated from operations 1,405 174 3,080
Interest received 29 32 67
Income taxes received 1 662 663
Net cash-inflow from operating activities 1,435 868 3,810
Income taxes received are amounts in relation to Research and Development
activities. Post period end £684,000 was received and used to settle the
existing Time to Pay arrangement with HMRC.
Notes To The Unaudited Consolidated Financial Statements
15. Further Copies
This statement, full text of the London Stock Exchange announcement and the
results presentation can be found on the Group's website www.trakm8.com and
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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