Trakm8 Holdings PLC – TRAK – Half-Year Results

Trakm8 Holdings PLC – TRAK – 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 2020:

Financial Highlights

6 months to

6 months to

Year to 31

Change

30 Sept 2020

30 Sept 2019

March 2020

Unaudited

Unaudited

Audited

£000

Revenue

7,321

-17%

of which, recurring revenue1

4,635

-5%

Loss before tax

(845)

-62%

Adjusted loss before tax2

(314)

-80%

Loss after tax

(732)

-59%

Cash generated from operations

2,055

+44%

Net Debt3

5,574

-9%

Basic (loss)/ earnings per share

(1.46p)

-59%

Adjusted basic (loss)/ earnings per share

(0.56p)

-78%

 

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

 

Operational Overview

·   H1 2020 results:

Significant reduction in losses despite revenue decline as a result of Covid-19

Improving revenues later in the period, following significant drop in April and May upon Covid-19 lockdown

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

Reduced overheads as a result of efficiency improvements implemented in FY2020, which includes lower payroll costs

Improved cash generation from operations due to significant reduction in losses, PAYE & VAT deferments and strong working capital actions

Launch of extended range of self-fit telematics devices

·   Continuation of new contract wins and renewals:

Optimisation contract awarded by major UK food retailer

Strong period of contract renewals in the Fleet business, despite Covid-19 all significant contracts due for renewal in the period have been renewed

Installed base increases in Insurance from existing and new customers offset in part by Fleet reductions

Approximately 253,000 connections (March 2020: 245,000 connections), an increase of 8,000 connections, a 3% increase in the six month period since last year end

·   Stronger H2 and FY2021 outlook:

Major automotive customer committed to a further 24,000 units over next 12 months following their European launch

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

Additional  efficiency savings implemented

Investment in engineering to deliver additional gross margin improvements over the next 6 months

Outlook

Revenues picked up during the first half with revenues in the second quarter 23% higher than in the first quarter.  This improvement continued into October in both Insurance and Fleet, resulting in this being the highest revenue month to date this financial year.  The Insurance business benefitted from increasing device shipments to both existing and recently won customers resulting in both September and October 2020 shipments being 50% higher than March 2020.  Fleet sales team performance has returned to pre Covid-19 levels, with the total value of orders in the first half 16% up on the first half of the prior year.  Orders in October 2020 were 12% up on October 2019.

However due to the second lockdown there is a softening in the market and increased uncertainty that means the Group is still not able to provide guidance for the full financial year at this time.  However the Group expects revenue in the second half to be significantly higher than the first half given current orders, even with a reasonable downside scenario taken into account for the ongoing impact of Covid-19.

No Comments

Post a Comment