REG - Trakm8 Holdings PLC - Trading update

Trakm8 HoldingsAnnouncement

22/03/2024 07:00

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RNS Number : 8761H  Trakm8 Holdings PLC  22 March 2024

The information contained within this announcement is deemed by the Group to
constitute inside information as stipulated under the UK Market Abuse
Regulation

 

22 March 2024

Trakm8 Holdings plc

('Trakm8' or the 'Group')

Trading Update

Trakm8, a UK based technology leader in fleet management, insurance
telematics, connected car, and optimisation, provides the following trading
update for its current financial year ending 31 March 2024 ("FY-2024").

 

On 24 November 2023, the Group announced, inter alia, that discussions were
ongoing to secure a large optimisation software sales contract (the
"Contract") and that the Board expected to meet market expectations for
FY-2024 provided that this Contract was secured in FY-2024.

 

In the interest of ensuring that the Group is positioned to secure the best
commercial outcome in relation to the Contract, the Board has determined that
it is no longer appropriate to attempt to conclude discussions in relation to
the Contract in the current financial year.

 

Noting that entering into the Contract in the current financial year
underpinned the Group's market expectations for FY-2024, the Group will now no
longer meet market expectations for FY-2024.

 

In addition, it has separately become apparent to the Board that trading
during February and March 2024 has also been negatively impacted, primarily
due to ongoing shortages of insurance capacity. Consequently, this has
contributed to lower connections and recurring revenues for FY-2024 than
previously expected.

 

The Board therefore now believes that Group turnover for FY-2024 will be
£16.4m resulting in an adjusted loss before tax of £1.4m for the period. The
Group's cash position at 31 March 2024 is anticipated to be approximately
£0.4m.

 

While the combination of the delay in securing the Contract and the
weaker-than expected trading during February and March 2024 is disappointing,
discussions in relation to the Contract are ongoing. While there can be no
certainty as to the conclusion of these discussions, the Group expects to
benefit from any revenues generated from this potential Contract in the
financial year ending 31 March 2025 ("FY-2025"). However, the Group
anticipates that its FY-2025 results will be adversely impacted by the lower
levels of insurance connections, as outlined earlier. At this stage, the
extent of any shortfall is unclear as this will depend on insurance capacity
returning at which point the Board is hopeful there will be a surge in demand.

 

- 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 275,000 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, Direct
Line Group, Ticker 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

 

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