Quartix Holdings PLC – Final Results

Quartix Holdings PLC – Final Results

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 2018.

Restatement of comparatives:

All comparative monetary amounts for 2017 have been restated in line with the Group’s adoption of the recognition and measurement principles of IFRS 15: ‘Revenue from Contracts with Customers’ and the related ‘Clarifications to IFRS 15 Revenue from Contracts with Customers’ (See note 1).

Financial highlights:

  • Group revenue increased by 5% to £25.7m (2017: £24.5m)
    Fleet revenue grew by 10% to £18.8m (2017: £17.1m)
    Insurance revenue declined by 7% to £7.0m (2017: £7.4m)
  • Operating profit increased by 21% to £8.0m (2017: £6.6m)
  • Adjusted EBITDA 1 increased by 15% to £8.3m (2017: £7.2m)
  • Profit before tax increased by 22% to £8.1m (2017: £6.6m)
  • Diluted earnings per share increased by 16% to 14.19p (2017: 12.26p)
  • Free cash flow 2 decreased by 11% to £5.6m (2017: £6.3m)
  • Cash generated from operations 3 fell by 3% at £6.8m (2017: £7.0m)
  • Net cash reduced to £6.8m (2017 net cash: £7.3m)
  • Final dividend payment of 10.0p per share proposed (2017: 11.1p) including 6.2p for supplementary dividend (2017: 6.8p) giving a total dividend for the year of 12.4p per share

1   Earnings before interest, tax, depreciation, amortisation and share based payment expense
Cash flow from operations after tax and investing activities
Cash inflow before tax

Operational highlights:

  • Strong progress in the main fleet business:
    17% increase in subscription base to 123,157 units (2017: 105,314)
    20% increase in customer base to 13,176 (2017: 10,961)
    Unit attrition increased to 11.9% (2017: 10.1%) due to higher attrition in the US, but compares favourably with our estimate of the industry average of around 14-15 per cent
    16% growth in new fleet installations
    Strong growth in France, ending the year with 2,474 customers (2017: 1,776) and 18,803 vehicles under subscription (2017: 13,131), an increase of 39% and 43% respectively
    During its fourth full year of trading the USA grew its customer base to 2,007 (2017: 1,460), with 13,133 vehicles under subscription (2017: 8,973)
  • As anticipated further decline in the lower-margin insurance telematics business:
    29% decline in insurance installations to 41,255 (2017: 57,826)

Andy Walters, Chief Executive Officer of Quartix, commented:

“We are delighted with the progress made in 2018. New fleet installations increased by 16% to 31,456 and the client base grew by 20% to 13,176. 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 46% to 13,133 and 43% to 18,803, respectively. In the UK the subscription base increased by 10% to 91,221 vehicles.

We invested in significant enhancements to our web and mobile applications and designed new telematics devices to facilitate installation by our customers. These developments pave the way for the launch of our telematics services in additional European markets and languages, which we are piloting with Poland and Spain this month. We expect to be able to provide better support for our Spanish-speaking customers in the USA in the near future.”

“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.”

“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 the rest of Europe underpin our confidence for the current financial period and beyond.”

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