Trakm8, a leading telematics and data supplier to global markets, confirms that for the third quarter of the financial year ending 31st March 2019, the Group has grown orders in challenging markets and implemented a rigorous cost saving programme.
During the quarter, Trakm8 saw a marked improvement in order volumes, which were 10% greater than the run rate of the first half, and shipments restarted to the Group's major automotive customer. As Trakm8 moves into the final quarter of FY2019 the Board expects to improve the trend of growing new orders and in turn shipments. During January orders amounting to circa 30,000 units were received from a wide range of new and existing customers.
The revamped Fleet sales team has delivered a strong start to the final quarter with a number of contract wins already secured, however certain Fleet order opportunities continue to be delayed, rather than lost, because of the ongoing Brexit uncertainty. The Directors anticipate that while full year revenues will now be 25% to 35% below last year, the second half will be profitable, and, provided the mix of revenue is as expected, the loss for the year will remain as previously anticipated.
The long-term pipeline of opportunities has also been enhanced by its strategic partnership with Microlise Group Holdings Limited ("Microlise") in December 2018. Following the investment into the Company by Microlise, Trakm8 and Microlise are evaluating several work streams to maximise the potential of working together more closely, whilst at the same time maintaining both companies' full independence. Whilst it may take some time to deliver substantial positive results from this activity, Trakm8 is optimistic of the long-term benefits that this partnership will bring to both parties in the future.
Another near-term strategic priority for Trakm8 has been to continue to reduce operating costs. During the last quarter the Group has implemented approximately £2 million of annualised savings. The bulk of these savings will be fully effective for the start of the new financial year commencing 1st April 2019. The Board is confident that this significantly reduced cost base and the increased revenue run rate will result in a measurable improvement in performance for financial year ending 31st March 2020.