7 September 2016
Trakm8 Holdings plc
("Trakm8", the "Group" or the "Company")
AGM Statement & Trading Update
Trakm8 Holdings plc, the AIM listed telematics and data supplier to global markets, is today holding its Annual General Meeting. Executive Chairman John Watkins will make the following statement on current trading at the meeting.
"Trakm8 is pleased to report that trading in the first five months of the current financial year commencing 1 April 2016 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 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.
In August, we acquired Roadsense Technology, a specialist telematics sales company, for £0.8m in cash. The business was acquired to consolidate and grow the Group's share of the SME market, in which it has been historically underrepresented and which is growing quickly. Roadsense reported revenues of £0.9m and operating profits at break even in its financial year ending 31.3.16. It had 3,500 units reporting to its servers on completion.
Overall, Trakm8 has had an encouraging start to the financial year in terms of new orders, as a result of which the Board's overall outlook for the year is unchanged (excluding the impact of exchange rate movements). The Group will report its half year results as usual in late November."
Capital Markets Event
Following the AGM, the Company is hosting a Capital Markets presentation for analysts and investors. No new material financial information will be disclosed in the presentation.
For further information please contact:
Trakm8 Holdings plc
+44 1747 858444
John Watkins, Executive Chairman
James Hedges, Finance Director
MHP Communications (Financial PR to Trakm8)
+44 20 3128 8100
Reg Hoare / Jade Neal
finnCap (Nomad & Broker to Trakm8)
+44 20 7220 0500
Ed Frisby / Simon Hicks - corporate finance
Joanna Scott - corporate broking
Trakm8 is a UK based Big Data company utilising telematics as its primary enabler. Through IP owned technology, over three billion miles worth of data is collected annually through its fleet management solutions to create and fine tune algorithms used to score driver behaviour, monitor vehicle health and continuously improve the security and operational efficiencies of customers' vehicles.
With its headquarters in Dorset and a manufacturing facility in the West Midlands, the Group supplies a number of well-known customers in the fleet management and insurance sectors across the UK and further afield including customers such as the AA, Saint Gobain, EON, Direct Line Group and Young Marmalade.
The Group's portfolio offers complete telematics solutions, which since the acquisition of the business and assets of DCS Systems, includes dashboard cameras that enable customers to record driving incidents and mitigate the risk from "crash to cash" accidents. This is complemented through a comprehensive hardware range, which includes a self-install unit that is one of the smallest available on the global market.
Recently, the Group acquired Route Monkey, significantly enhancing the Group's logistics solution which offers both route scheduling and optimisation, including routing for electric vehicles.
Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005.
www.trakm8.com / @Trakm8
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
This information is provided by RNS