REG - Trakm8 Holdings PLC - Trading Update

Trakm8 HoldingsAnnouncement

26/04/2022 07:00

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RNS Number : 2611J  Trakm8 Holdings PLC  26 April 2022

 

26 April 2022

Trakm8 Holdings plc

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

Trading Update

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight
provider, today announces a trading update for its financial year ended 31
March 2022.

Revenues for the full year ended 31 March 2022 were £18.2m, which is 14% more
than the prior financial year. Revenues from Fleet customers amounted to
£11.3m, 19% more than last year. In a year that started in lockdown and when
driving tests and availability of second hand cars were negatively impacted by
Covid-19, revenues from Insurance customers amounted to £6.9m, 7% more than
last year as a result of a strong fourth quarter for new policy sales and new
customer launches.

The Group expects to achieve an adjusted profit before tax for the financial
year in line with previous guidance of circa £7k (FY-2021: Adjusted loss of
£0.3m) and a profit after tax of £0.2m (FY-2021: Loss after tax of £1.2m)

Cash generation from operating activities at £3.6m, has been as expected and
at 31 March 2022 the Group net debt was £5.4m (£7.0m after IFRS 16 changes),
which is £0.5m higher than as at 31 March 2021 and a £0.8m reduction since
30 Sept 2021.  At the year end, the Group had £1.0m of cash on hand and a
further £0.5m of available funds under an overdraft facility. During the
financial year, the Group reduced the long term liability to HMRC by £0.9m to
£0.9m in line with an agreement reached last year.

During the year, connections increased by 4% to 264,000 (FY-2021: 254,000).
Fleet connections increased by 1% to 71,000 (FY-2021: 70,000), Insurance &
Automotive connections increased by 5% to 193,000 (FY-2021: 184,000). The
resulting recurring revenues in the year increased by 5% to £9.8m,
representing 54% of Group revenues.

Software revenues increased by 149% to £1.3m, representing 7% of Group
revenues.

The Group has had to deal with a number of significant supply chain challenges
but, with the benefit of our fully integrated business model, has successfully
avoided any meaningful interruptions to customer deliveries during the period.
There has however been an impact on the Group's costs and we estimate this
amounted to £0.2m during the financial year.

We were pleased to advise during the year that several major contract awards,
extensions and renewals were secured.

Further new products and solutions were introduced to the market that will
continue to improve the costs and functionality of the solutions we sell.

 

Outlook

A major challenge for Trakm8 post Covid-19 and now the war in Ukraine will be
the security of component supply where it faces challenges weekly of varying
significance.  However, the Group continues to take steps to minimise these
risks.

There are a number of Fleet deployment contract renewals during 2022 which are
important to the outcome for the year and the timing of which will lead to
Group revenue being second half weighted.  Growth in Insurance policy sales
will be dependent on the level of activity from the new customers which have
been announced, alongside a return to more normal sales at existing customers.

Like many businesses, Trakm8 is currently experiencing significant salary and
component inflationary pressures.  Whilst it is unlikely that the Group will
be able to mitigate all of these cost increases, it is taking what steps it
can to achieve this.

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 2022.

 

- Ends -

For further information:

 Trakm8 Holdings plc
 John Watkins, Executive Chairman                      Tel: +44 (0) 167 543 4200
 Jon Edwards, CFO                                      www.trakm8.com

 Arden Partners plc (Nominated Adviser & Broker)       Tel: +44 (0) 20 7614 5900
 Paul Shackleton, Corporate Finance                    www.arden-partners.com

 Simon Johnson, 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 264,000 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, GSF, Direct Line Group,
Ticker 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 / @Trakm8

 

 

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