Trakm8 Holdings PLC – Half Year Results

Trakm8 Holdings PLC – Half Year Results

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, announces its unaudited results for the six months ended 30 September 2019:

Financial Highlights

6 months to

6 months to

Year to 31

Change

30 Sept 2019

30 Sept 2018

March 2019

Unaudited

Unaudited

Audited

£000

£000

£000

Revenue

8,867

8,839

19,145

+0.3%

of which, recurring revenue1

4,885

5,117

10,087

-5%

Operating loss

(2,030)

(2,815)

(3,340)

+28%

Loss before tax

(2,197)

(2,926)

(3,563)

+25%

Adjusted operating loss before tax2

(1,583)

(2,454)

(1,452)

+35%

Loss after tax

(1,787)

(2,183)

(2,506)

+18%

Cash generated from operations

1,432

(421)

(1,752)

+440%

Net Debt3

(6,095)

(5,730)

(5,629)

-6%

Basic earnings per share

(3.57p)

(6.08p)

(6.20p)

+41%

Adjusted basic earnings per share

(2.53p)

(4.94p)

(1.89p)

+49%

1 Recurring revenues are generated from ongoing service and maintenance fees

2 Before exceptional costs and share based payments

3. Total borrowings less cash excluding IFRS 16 adjustment for leased property and motor vehicles

 

Operating highlights

·      H1 2019 results improved year-on-year due to:

o  Improved levels of new orders leading to slightly higher revenues

o  Significantly improved gross margins due to lower hardware, labour, communication and installation costs

o  Reduced overheads despite a £270k increase in non-cash amortisation and depreciation (net of IFRS16 impact) as a result of efficiency improvements implemented in FY2019

o  Significantly improved cash generation from operations due to significant reduction in losses and strong working capital actions, despite £1.01m R&D tax credit cash not received in the period due to HMRC delays

·      Continuation of new contract wins:

o  New contract awards with major clients By Miles, Altrad, and a number of other Fleet and Vehicle Leasing clients, all deployments commenced in H1 and continue into H2.

o  Installed base continues to grow in Fleet from existing and new customers offset by Insurance reductions:

§ Approximately 240,000 connections (Sept 2018: 250,000 connections), a decrease of 3,000 connections (1%) in the six month period since last year end.

·      Stronger H2 and FY2021 outlook:

o  Major automotive customer committed to a minimum of 45,000 units over next 12 months

o  Ingenie deployment commenced in November

o  Lexis Nexis expected to start deployment in January

o  Strong level of orders, post period, from existing and new Fleet customers

o  Additional significant efficiency savings implemented

Outlook

The Board is confident that the second half of the year will be sufficiently improved over the first half to end the year meeting full year market expectations of increased revenues and modest adjusted profit before tax.

No Comments

Post a Comment