28 April 2017
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Year End Trading Update
Trakm8, the AIM-listed telematics and data insight provider, today announces a trading update for its financial year ended 31 March 2017.
o up 6% year on year
o up 7% like for like1
o recurring revenue2 up 18% to £9.8m (2016: £8.3m)
· New orders booked up 37% year on year, benefitting FY18 and beyond:
o like for like growth of 33%
o recent substantial contract extension with Young Marmalade
· 26% increase in units reporting to our servers to approximately 191,000 at year end (2016: approximately 151,000)
· Financial performance in line with February 2017 revised expectation
· Year-end net debt3 of £3.9m (2016: £1.1m):
o Placing of £2.1m completed in March 2017 to strengthen balance sheet and provide working capital
1 Excluding acquisition contributions and after elimination of £2.5m sub-contract revenues
2 Fees from service and data
3 Total borrowings less cash
Trakm8 delivered growth in revenue and recurring revenue alongside significant investment in our products and resource. We ended the year having launched our widest ever range of innovative products and solutions and with our strongest ever customer base and deepest order pipeline.
Investment in future growth
The Group has invested heavily in engineering. The development of its innovative products and solutions including the new integrated camera, telematics and optimisation solution and the Insight portal has resulted in a much higher investment in IP. We have launched these products with excellent market reaction over the past few months but later than originally expected.
The Group also expanded its sales and marketing resources considerably. Although new contracts have taken longer to secure, as a result, the pipeline of significant opportunities continues to be very strong with both existing and new customers.
As previously announced the Group has substantially completed an overhead reduction exercise that is expected to generate £1.5m of annualised savings at a one off cost of £0.13m. These savings have been achieved through various consolidation activities that have been undertaken to focus the Group into one operating business whilst ensuring we retain our core skills of designing innovative products and selling them more effectively.
In March 2017 the Group decided to reduce debt and to underpin its working capital requirements by means of an oversubscribed fundraise of £2.1m. The Directors and senior management invested £0.8m alongside institutional and other investors. As a result at year-end the Group had net debt of £3.9m, including cash and cash equivalents of £2.0m, and also has an available RCF of £3.3m to draw down upon if required.
The Board is confident in the Group's future prospects and an update on trading for the current financial year commencing 1 April 2017 will be provided in conjunction with the 2016/17 final results.
Notice of Results
The Group expects to announce its final results for the year ended 31 March 2017 on Monday, 3 July 2017.
John Watkins, Executive Chairman of Trakm8 commented:
"Trakm8 finished last year with results worse than we expected when we started the year. Despite this disappointment, there has been significant underlying progress, especially with innovative new product launches.
"We have invested for future growth by expanding our engineering, sales and marketing teams, whilst eliminating excess costs. We have successfully integrated all our businesses with a focus on individual market sectors. This increased efficiency is expected to improve our profitability and competitive position in the coming years.
"The recent small placing has strengthened the balance sheet and provides greater flexibility to address our working capital requirements as we grow the business.
"This year we anticipate making excellent progress on our strategy to be a major global data driven insights company serving the telematics market."
Trakm8 Holdings plc
+44 (0) 174 785 8444
John Watkins, Executive Chairman
James Hedges, Finance Director
finnCap (Nomad and broker)
+44 (0) 20 7220 0500
Ed Frisby / Simon Hicks - corporate finance
Tim Redfern / Richard Chambers - corporate broking
+44 (0) 20 3128 8100
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 including 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.
The Group acquired both Route Monkey and Roadsense Technologies Ltd. Route Monkey has enhanced Trakm8's logistics solution offering route scheduling and optimisation, including routing for electric vehicles. Roadsense has been acquired to strengthen the Group's presence in the SME fleet management market.
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 contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS