Quartix Holdings plc (AIM:QTX), a leading supplier of vehicle telematics services to the fleet and insurance sectors, is pleased to announce its audited results for the year ended 31 December 2019.
Restatement of comparatives:
All comparative monetary amounts for 2018 have been restated in line with a change in policy in the recognition of commission costs associated with contracts with customers under IFRS 15: ‘Revenue from Contracts with Customers’ (See note 1: Basis of preparation). There has been no restatement related to IFRS 16 ‘Leases’.
• Group revenue decreased by 0.3% to £25.6m (2018: £25.7m)
o Fleet revenue grew by 11.0% to £20.8m (2018: £18.8m)
o Fleet revenue represented 81% of total revenue (2018: 73%)
o Insurance revenue decreased by 30.8% to £4.8m (2018: £7.0m)
• Adjusted EBITDA decreased by 17.1% to £7.1m (2018: £8.5m)
o Fleet telematics services profits increased by 12.8% to £16.5m (2018: £14.6m) (note 3)
o Fleet customer acquisition investment increased by 42.5% to £6.1m (2018: £4.3m)
o Insurance segment profit decreased by 50.5% to £1.6m (2018: £3.2m)
• Operating profit decreased by 21.7% to £6.4m (2018: £8.2m)
• Profit before tax decreased by 21.8% to £6.5m (2018: £8.3m)
• Diluted earnings per share decreased by 22.4% to 11.25p (2018: 14.50p)
• Free cash flow increased by 11.5% to £6.2m (2018: £5.6m)
• Cash generated from operations increased by 6.4% at £7.3m (2018: £6.8m)
• Net cash remained constant at £6.8m (2018: £6.8m)
• Final dividend payment of 10.0p per share proposed (2018: 10.0p) including 5.8p for supplementary dividend (2018: 6.2p) giving a total dividend for the year of 12.4p per share.
• Strong progress in the core fleet business:
o 22.3% increase in subscription base to 150,640 units (2017: 123,157)
o Annualised recurring revenue increased to £20.5m (2018: £18.8m)
o Growth in annualised recurring revenue (on a constant currency basis) of £2.0m (2018: £1.7m)
o 24.4% increase in customer base to 16,394 (2018: 13,176)
o Unit attrition has remained constant at 11.9% (2018: 11.9%)
o 39.4% growth in new fleet subscriptions
o Strong growth in France, ending the year with 3,528 customers (2018: 2,474) and 25,643 vehicles under subscription (2018: 18,803), an increase of 42.6% and 36.4% respectively.
o During its fifth full year of trading the USA grew its customer base to 2,621 (2018: 2,007), with 18,050 vehicles under subscription (2018: 13,133) an increase of 30.6% and 37.4% respectively
o The European expansion in 2019 has seen the customer base grow to 337 with 1,316 vehicles under subscription at the year end.
• As anticipated further decline in the lower-margin insurance telematics business:
o 11.8% decline in insurance installations to 36,386 (2018: 41,255)
 Annualised data services revenue for the subscription base at the year end, before deferred revenue, including revenue for units waiting to be installed for which subscription payments have started or are committed
Andy Walters, Chief Executive Officer of Quartix, commented:
“We are delighted with the progress made in 2019. New fleet installations increased by 39% to 43,837 and the client base grew by 24% to 16,394. Further investment has been made in the development of the Group’s fleet businesses in the United States and France where the vehicle subscription bases increased by 37% to 18,050 and 36% to 25,643, respectively. In the UK the subscription base increased by 16% to 105,631 vehicles.
We invested in significant enhancements to our web and mobile applications to support the launch of our telematics subscription platform in Poland, Spain, Italy and Germany. By the end of the year we had developed a client base of 337 customers in those countries, with a total of 1,316 vehicles.”
“We achieved satisfactory margins in our insurance operations, in keeping with the Group’s stated strategy of focusing on only those insurance opportunities which are closely aligned to the Group’s fleet business.”
“Our manufacturing partner in China has resumed limited operations following the New Year celebrations due to the difficulties caused by the Coronavirus outbreak. At the time of writing, management does not expect any material disruption to supply, but it is monitoring the situation closely.”
“The Group has made a strong start to the year in each of its markets. The high levels of recurring revenues and opportunities to grow the fleet business in the UK, USA, France and each of its new territories underpin our confidence for the current financial period and beyond.”