Quartix Holdings PLC – QTX – Final Results

Quartix Holdings PLC – QTX – 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 2020.

Financial highlights:

•             Group revenue increased by 0.8% to £25.8m (2019: £25.6m)

o             Fleet revenue1  grew by 6.0% to £22.0m (2019: £20.8m)

o             Fleet revenue represented 85.4% of total revenue (2019: 81.2%)

o             Insurance revenue2 decreased by 21.5% to £3.8m (2019: £4.8m)

•             Adjusted EBITDA3 increased by 11.5% to £7.9m (2019: £7.1m)

o             Fleet telematics services profits4 increased by 6.0% to £17.5m (2019: £16.5m) (note 3)

o             Fleet customer acquisition investment5 increased by 14.1% to £6.9m (2019: £6.1m)

o             Insurance segment profit6 increased by 32.5% to £2.1m (2019: £1.6m)

•             A provision of £1.6m in respect of the swap out of 3G fleet units in the US (see Strategic Report: Financial Review)

•             Operating profit therefore decreased by 11.8% to £5.7m (2019: £6.4m)

•             Profit before tax decreased by 12.3% to £5.7m (2019: £6.5m)

•             Adjusted diluted earnings per share7 of 13.16p, diluted earnings per share of 9.82p (2019: 11.25p)

•             Free cash flow8 decreased by 11.1% to £5.5m (2019: £6.2m)

•             Final dividend payment of 17.7p per share proposed (2019: 10.0p) including 15.30p for supplementary dividend (2019: 5.8p) giving a total dividend for the year of 21.07p per share.

1 Total Fleet segmental revenue (see note 3)

2 Insurance segmental revenue (see note 3)

3 Earnings before interest, tax, depreciation, amortisation, share based payments and the 3G replacement provision (see Strategic Report: Financial Review)

4 Profit for the Fleet segment before customer acquisition costs and central fleet costs (see note 3)

5Sales, marketing, net equipment, net installation and carriage cost for new fleet customers (see note 3 for full explanation)

6Insurance segmental profit increased as a result of a reduction in equipment and installation costs (see note 3)

7Diluted earnings per share before the 3G replacement provision (see Strategic Report: Financial Review)

8Cash flow from operations after tax and investing activities


Principal activities and performance measures

The Group's main strategic objective is to grow its fleet subscription base and develop the associated annualised recurring revenue. The Key Performance Indicators used by the Board to assess the performance of the business are listed below and discussed in the Chairman's Statement and Strategic Report.

Key Performance Indicators ("KPIs")

Year ended 31 December



% change

Fleet subscriptions1 (new units)




Fleet subscription base2 (units)




Fleet customer base3




Fleet attrition (annualised) 4 (%)



Annualised recurring revenue5 (£'000)




Fleet invoiced recurring revenue6 (£'000)




Fleet revenue7 (£'000)




Price erosion8 (%)



Insurance installations9 (new units)




Insurance revenue10 (£'000)





1     New vehicle tracking unit subscriptions added to the subscription base before any attrition

2       The number of vehicle tracing units subscribed to the Group's fleet tracking services, including units waiting to be installed for which subscription payments have started or are committed.

3       The number of customers associated with the fleet subscription base 

4       The number of new vehicle tracking unit subscriptions, less the increase in subscription base, expressed as a percentage of the mean subscription base 

5       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

6       Invoiced subscription charges before provision for deferred revenue

7       Total fleet segment revenue (see note 3)

8       The annual decrease in average subscription price of the base expressed as a percentage of the average subscription price at the start of the year, all measured in constant currency 

9       The number of new vehicle tracking unit installation in the insurance segment 

10     Insurance segment revenue (see note 3)


Andy Walters, Chief Executive Officer of Quartix, commented:

"It is very pleasing to report strong growth in our fleet customer and subscription bases during 2020, despite the difficulties encountered through the coronavirus pandemic, particularly in the first half. The fleet customer base increased by 16% to 19,000 and the subscription base increased by over 15% to 174,000 vehicles. The strength of the business in the second half, despite restraints imposed by the pandemic, was very encouraging, and we continued to invest in the development of our sales teams and channels. New vehicle subscriptions in the second half were 10% ahead of those in the first half, and we have entered 2021 with strong levels of new customer acquisition.

Growth in our international markets was extremely encouraging: the subscription base in France expanded by 22% to 31,345 vehicles; in the USA it increased by 30% to 23,479; and in our new territories (Spain, Italy, Germany and Poland) the base trebled in size to 3,904. In the UK the subscription base increased by 9% to 115,065 vehicles. I am confident that, given recent recruitment in our sales teams and our investments in marketing, we can accelerate the rate of customer acquisition further as the economy opens up again.

Although the latest lockdown in the UK has had an adverse impact on customer activity in the first two months of 2021, we expect new fleet subscriptions to be close to the levels achieved in the same period last year, but with much stronger prospects for March. The high levels of recurring revenues and opportunities to grow the fleet business in the UK, USA, France and each of our new territories underpin our confidence for the current financial period and beyond."

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