Trakm8 Holdings PLC – Final Results

Trakm8 Holdings PLC – Final Results

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, announces its final results for the year ended 31 March 2019 (FY-2019).

 

FINANCIAL SUMMARY:

FY-2019

FY-2018

Restated4

Change

Group revenue

£19.1m

£29.4m

-35%

of which, Solutions revenue

£19.1m

£26.1m

-27%

of which, Recurring revenue1

£10.1m

£10.8m

-7%

(Loss)/ Profit before tax

(£3.6m)

£0.5m

n/a

Adjusted (loss)/ profit before tax2

(£1.5m)

£2.1m

n/a

(Loss)/ profit after tax

(£2.5m)

£1.0m

n/a

Net Cash generated from operations

(£1.8m)

£4.7m

n/a

Net debt3

£5.6m

£3.3m

+70%

Basic (loss)/ earnings per share

(6.20p)

2.72p

n/a

Adjusted basic (loss)/ earnings per share2

(1.89p)

6.51p

n/a

1 Recurring revenues are generated from ongoing service and maintenance fees

2 Before exceptional costs and share based payments

3 Total borrowings less cash and cash equivalents

4 Restatement due to adoption of IFRS15, details provided in note 13

 

OPERATIONAL HIGHLIGHTS

·      Sales related challenges and contract delays significantly impacted revenue in the year

·      Implemented further reduction of annualised operating costs by £2.0m, including the final consolidation of Roadsense and Routemonkey, with savings reinvested into sales and marketing.

·      Re-structured Fleet Management sales team including recruiting new management with dedicated Direct and Channel teams.

·      Production launch of new insurance self-fit hardware product.

·      Over 243,000 connected units in operation (FY-2018: 251,000).

·      New contract wins with LexisNexis and Ingenie, with launch inventory for both supplied in quarter 4.

·      R&D spend down 10%, however still £4.3m invested.

 

 

 

OUTLOOK

·      The new financial year has begun with new contract awards from two further insurance companies, with revenues already commenced.

·      Revenues from new insurance contract wins expected to impact strongly the second half of the new financial year.

·      The AA Smart Breakdown launch is expected to provide a lift to revenues in the second half of the financial year.

·      Fleet sales team’s performance is continuing to improve, securing a higher value of contracts than the corresponding period last year with this momentum expected to continue.

·      Early months in current financial year confirm realisation of the £2.0m cost savings.

·      Given the disappointment of last year, we are being prudent with our outlook, with market expectations of a relatively modest recovery (low double digit growth) in revenues with small adjusted profitability.

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