REG - Trakm8 Holdings PLC - Year End Trading Update

Trakm8 HoldingsAnnouncement

25/04/2023 07:00

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RNS Number : 2837X  Trakm8 Holdings PLC  25 April 2023

 

25 April 2023

Trakm8 Holdings plc

("Trakm8", the "Group" or the "Company")

Year End Trading Update

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight
provider, today announces an unaudited trading update for the financial year
ended 31 March 2023 ("FY 2023").

Revenues for FY 2023 are expected to be £20.2m, which is 11% more than the
prior financial year and in line with guidance. Revenues from Fleet customers
are expected to amount to £11.5m, 2% more than last year. Revenues from
Insurance & Automotive customers are expected to amount to £8.7m, 27%
more than last year.

Software sales increased by 54% to £2.1m (FY-2022: £1.4m), representing 10%
of Group revenues.

With a profitable second half of FY 2023, the Group expects to achieve an
adjusted profit before tax for FY 2023 in line with guidance of circa £0.3m
(FY-2022: £0.0m).

Cash generation from operating activities for FY 2023 is expected to be
£4.2m.  As at 31 March 2023, Group net debt was £5.6m (£6.9m after IFRS 16
changes), which is £0.2m higher than as at 31 March 2022.  At the year end,
the Group had £1.1m of cash on hand and a further £0.5m of available funds
under the Group's overdraft facility. During FY 2023, the Group eliminated the
£0.9m long-term liability due to HMRC, in line with an agreement reached two
years ago.

During FY 2023, connections increased by 32% to 348,000 (FY-2022: 264,000)
with the resulting recurring revenues in the year increasing by 7% to £10.5m,
representing 52% of Group revenues.

We were pleased to announce during FY 2023 that several major new contract
awards, extensions and renewals were secured.

Supply chain challenges were a constant during the year, but these were
largely overcome using the close integration of engineering and operations.
The Group is pleased to highlight that these challenges are now abating and
the expectation is that we have been through the worst.

We have completely refreshed our hardware products as part of addressing the
supply chain constraints and good enhancements to our software solutions were
introduced to the market that will continue to improve the costs and
functionality of the solutions we sell.

The Group reduced annual operating costs by more than £2m by focusing on our
most successful activities. With these changes now complete, the Group is now
benefitting from these much lower overheads.

The Group has extended its bank facilities with HSBC until the end of July
2024 on terms similar to the Group's existing arrangements.

Outlook

We continue to be concerned about the impact on costs and business sentiment
due to the ongoing war in Ukraine. In addition, there has been a significant
impact on the insurance market with increased re-insurance costs and some
insurance capacity being removed from the market. We expect these capacity
constraints to be remedied relatively quickly but may impact the next few
months.

However, we have recently announced several new Insurance contracts and have
renewed/extended our most significant Fleet contracts. We start the year in
the knowledge that the Group will benefit from these future revenues,
significantly lower costs and an excellent pipeline of opportunities.

The Board looks forward to providing an update on Trakm8's trading performance
in the current financial year at the time of publication of the Group's
results for the year ended 31 March 2023.

- 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 348,000 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, Sainsbury's, GSF, Direct
 Line Group, Ticker and Howden.

 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

 

 

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 348,000 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, Sainsbury's, GSF, Direct
Line Group, Ticker and Howden.

 

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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