Source - SMW
Trakm8 Holdings said trading in the first five months of the current financial year, which began April 1, has started satisfactorily and is consistent with its expectations for the year as a whole. 

"Group new orders booked have been received at a rate of 37% greater than the same period last year, of which 27% is organic growth. This continues the trend of strong growth of recent years," the company said. 

The period included the Scottish Power contract award announced in May and the bulk of these units are now installed.

"Recurring revenues have also continued to grow with 169,000 units now reporting to our servers, an increase of 18,000 since the year end. 

"This increase is based on an increase in Fleet Telematics of 7,000 to 66,000 units supplied to almost 2,300 customers and an increase in Insurance Telematics of 11,000 to 103,000 units.

"In line with previous years, the weighting of Group revenue, profits and cash flow is expected to be in favour of the second half. This is due to the fact that reporting units tend to accumulate as the year progresses as well as the timing of deployment of orders won in the first half.  

"Half year profitability is expected to be less than the first half of last year, with a stronger second half anticipated fulfilling the growing orders received in the financial year to date.

"The UK Referendum vote to leave the EU has resulted in a c. £0.5m increase in our component costs due to the impact of exchange rate movements.   However we are optimistic that this will be partially mitigated by our drive to increase sales overseas and through supplier cost down actions. 

"To date we have seen no impact on customer confidence in terms of our sales activity and order pipeline."