Source - LSE Regulatory
RNS Number : 5303U
Trakm8 Holdings PLC
24 November 2023
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation

24 November 2023

TRAKM8 HOLDINGS PLC

("Trakm8" or the "Group")

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 2023:

Financial Highlights

 


6 months to

6 months to

Year to 31


30 Sept 2023

30 Sept 2022

March 2023


Unaudited

Unaudited

Audited


£000

£000

£000

Revenue

8,537

9,012

20,197

of which, recurring revenue1

5,234

5,076

10,466

Profit/(Loss) before tax

13

(2,413)

(1,243)

Adjusted Profit/(Loss) before tax2

119

(1,077)

306

Profit/(Loss) after tax

94

(1,775)

(774)

Cash generated from operations

2,349

1,435

4,314

Net Bank Debt3

5,570

6,243

5,618

Basic earnings/(loss) per share

0.22p

(3.55p)

(1.57p)

Adjusted basic earnings/(loss) per share

0.38p

(1.37p)

0.95p

1 Recurring revenues are generated from 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 2023 results:

Revenues modestly lower due to significant insurance capacity driven reduction in demand

Gross margins significantly improved

Overheads significantly reduced

Losses eliminated with a shift towards profitability

Improved cash generation from operations - c. 63 per cent increase on the comparable period

 

·      H2 2023/24 and FY2025 outlook:

Insurance capacity not expected to return significantly this year; however new customers improving demand for H2 2023/24 and capacity is expected to recover for FY25

Major automotive customer demand expected to positively impact FY25

Substantial investment in second Data Centre to reduce operation costs by £0.6m per annum

Large Optimisation software contract sale still expected to conclude in FY24

Outlook

The Board expects to meet market expectations, provided a significant software sale is secured late in FY24. In this respect, discussions are ongoing to secure a large optimisation software sales contract, and while there can be no certainty, the Board remains confident of the prospects of concluding such discussions in FY24.

 

- Ends -

 

For further information:

Trakm8 Holdings plc

 

John Watkins, Executive Chairman

Tel: +44 (0) 1675 434 200

Jon Edwards, Chief Financial Officer

www.trakm8.com

 

 


Allenby Capital Limited (Nominated Adviser & Broker)

Tel: +44 (0)20 3328 5656

David Hart / Vivek Bhardwaj, Corporate Finance
Tony Quirke / Joscelin Pinnington, Sales and Corporate Broking
 

www.allenbycapital.com



 





 

About Trakm8

 

Trakm8 is a UK based technology leader in fleet management, insurance telematics, connected car, and optimisation. Through IP owned technology, the Group uses AI data analytics collected from its installed base of telematics units to fine tune the algorithms that are used to produce its' solutions; these monitor driver behaviour, identify crash events and monitor vehicle health to provide actionable insights to continuously improve the security and operational efficiency of both company fleets and private drivers.

 

The Group's product portfolio includes the latest data analytics and reporting portal (Trakm8 Insight), integrated telematics/cameras/optimisation, self-installed telematics units and one of the widest ranges of installed telematics devices. Trakm8 has over 324,000 connections.

 

Headquartered in Coleshill near Birmingham alongside its manufacturing facility, the Group supplies to the Fleet, Optimisation, Insurance and Automotive sectors to many well-known customers in the UK and internationally including the AA, Stark Building Materials, EON, Iceland Foods, GSF Car Parts, Direct Line Group, and Freedom Group.

 

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005. Trakm8 is also recognised with the LSE Green Economy Mark.

 

www.trakm8.com / @Trakm8

 



 

Executive Chairman's Statement

Results

I am pleased to report Trakm8's unaudited results for the six months ended 30 September 2023 ("H1 2023").

The first half of the financial year was in line with recent Company guidance. Revenues for the unaudited six-month period ended 30 September 2023 were modestly lower in comparison to the corresponding period of the previous financial year at £8.54m (H1 2022: £9.01m).

In H1 2023, there was a 2% increase in Fleet & Optimisation revenues to £4.90m and a reduction of 13% in Insurance revenues to £3.63m. We have reported previously on the dreadful current state of the UK motor insurance market, and this has had a significant impact on us. We estimate that the loss of insurance capacity has reduced revenues in the financial period concerned by £1.6m with overall connections reducing by 7% to 324,000 (FY ending 31.3.2023: 348,000). Notwithstanding this deterioration, there are some positives with a 14% uplift in our Automotive revenues during the financial period as a result of the success of our customers' service, maintenance and repair activities.

The Group is pleased to report a significant improvement in the profitability of the Group with an Adjusted Profit of £0.10m (H1 2022: loss £1.08m), Profit before Tax of £13k (H1 2022: loss £2.41m) and Profit after Tax of £0.10m (H1 2022: loss £1.78m).

During the period, material increases in motor insurance premiums and capacity constraints caused Insurance unit sales to reduce by 31% to 66,000 and Insurance & Automotive connections to decrease by 7% to 259,000 (FY ending 31.3.23: 279,000). Notwithstanding this, we do believe that new policies written will exceed cancelled policies going forward.  

In Fleet & Optimisation, our focus on Enterprise and higher margin business has resulted in connections decreasing by 6% to 65,000 (FY Ending 31.3.23: 69,000), with higher attrition in the small fleet sector, but revenues continuing to grow as previously reported. Fleet unit sales also decreased by 38% to 5,000 but with corresponding device revenues up 20% as more complex solutions continued to be delivered to new and existing customers.

Pleasingly, Recurring Revenues in the period increased over the previous year by 3% to £5.23m and represent 61% of the Group's overall revenues. In addition, the Group generated £0.20m of software revenues (H1 2022: £0.12m), which represent 2% of the Group's overall revenues. Software contract revenues are again weighted to the second half of the financial year, as was the case in previous financial years, from both new and existing customers who rely on our solutions for their fleet operations.

The supply chain challenges of the previous year are largely behind us. We have designed all new hardware products with the latest components that are more expensive than those they replaced, but we expect that these new components will start to reduce in cost next year. Despite this material cost impact, gross profit margin has improved to 67% (H1 2022: 58%). This is due in part to improved factory efficiencies but also the higher recurring revenues as a percentage of sales. Despite the insurance demand reduction, commitments to suppliers for components have not commensurately been deferred and inventory has accordingly continued to increase. It is expected that this increase in inventory will be reduced somewhat this financial year, with further reductions taking place in the next financial year.

In 2018, we launched the RH600, the first 4G live streaming integrated telematics camera, which has since received multiple industry awards. This year we have launched the RH800, which has core technology based on the RH600 but is capable of being used in the five camera solutions which are increasingly common. We expect that the RH800 will be the same leap forward in technology for the market that the RH600 was.

At the end of H1 2022, the Company embarked on a refocus of business activities and as a result was able to significantly reduce overheads. Overall, overheads have reduced by £913k compared to the previous financial period.

 

 

Financial position

Cash generation from operations was £2.35m (H1 2022: £1.44m) and as at 30 September 2023, the Group's net bank debt, excluding the impact of the IFRS16 lease liability, was £5.57m (H1 2022 £6.24m), representing a reduction of £0.05m compared to the end the previous financial year. The capital investment project for our second data centre of £0.5m increased debt by £0.2m in the financial period concerned.  Further capital investment is anticipated to be committed in early H2 2023. The Board believes that this capital investment should generate significant return on investment over the coming months and will ensure that we continue to deliver cutting edge solutions to our customers. As at 30 September 2023, the Group had £0.87m of cash on hand and a further £0.50m of available funds under an existing overdraft facility.

The overall cash outflow for the financial period was £0.25m (H1 2022: inflow of £0.29m). 

Strategy

The Group has been following the strategy outlined in its final results for the year ended 31 March 2023, which was announced on 4 July 2023. Our focus is to provide ever more meaningful insights to our customers using the data generated by our installed devices and other connections so that they can run their operations more efficiently and safely.

Our primary strategy going forward is continuing to grow the business through more connections, increased device sales and higher service fees. However, there have been serious headwinds in the motor insurance market with material policy price increases and a reduction in capacity. Although we have secured a number of additional customers, there has been a reduction in total connections. Despite this, we believe that the point has come that growth in connections will now restart. We are also expecting our Optimisation business to expand further into the home delivery space.

Trakm8 has focused on delivering market leading technology and ensures that the solutions are generating the best possible returns for our customers. We have reduced the levels of expenditure in R&D as we now have the latest technology in all our devices and our Insight platform is mostly feature complete. The launch of the RH800 for multicamera applications is a significant step forward in the Fleet market. We continue to own the majority of intellectual property in our value chain. We have been building out greater functionality of existing solutions. As a result, going forward we will meet our objectives of remaining a leading-edge technology company but at a lower investment cost.

Our third strategy has been to improve the efficiencies of our business in every possible way. We have been successful in significantly reducing our future overhead costs by £2.1m per annum and have implemented the investment in a second data centre, which will reduce our hosting costs by £0.6m per annum. We will continue to seek out further external cost reductions.

JOHN WATKINS

Executive Chairman

  


Unaudited Consolidated Statement of Comprehensive Income for the six months to 30 September 2023                                                 

 


 



Six months to 30 September 2023

Six months to 30 September 2022

Year to 31 March 2023

Unaudited

Unaudited

Audited

£'000

£'000

£'000


Note




Revenue

3

8,537

9,012

20,197

Cost of sales


(2,817)

(3,786)

(7,445)

Exceptional cost of sales


-

-

(261)

Gross profit


5,720

5,226

12,491

Other income

4

-

16

16

Administrative expenses excluding exceptional costs


(5,184)

(6,097)

(11,860)

Exceptional administrative costs

7

(94)

(1,319)

(1,272)

Total administrative costs


(5,278)

(7,416)

(13,132)

Operating profit/(loss)


442

(2,174)

(625)

Finance income


13

29

50

Finance costs

8

(442)

(268)

(668)

Profit/(Loss) before taxation


13

(2,413)

(1,243)

Income tax


96

636

460

Profit/(Loss) for the period


109

(1,777)

(783)

Other Comprehensive Income





Items that may be subsequently reclassified to profit or loss:





Exchange differences on translation of foreign operations


(15)

2

9

Total other comprehensive income


(15)

2

9






Total Comprehensive Profit/(Loss) for the period attributable to owners





of the parent

5

94

(1,775)

(774)

 

Profit/(Loss) before taxation

 

6

 

13

 

(2,413)

 

(1,243)

Exceptional cost of sales


-

-

261

Exceptional administrative costs


94

1,319

1,272

IFRS2 Share based payments charge


12

17

16

Adjusted profit/(loss) before tax


119

(1,077)

306

Earnings per ordinary share (pence) attributable to owners of the Parent





Basic

9

0.22

(3.55)

(1.57)

Diluted

9

0.22

(3.55)

(1.57)

 

The results relate to continuing operations.





 

 

 

 

 

 Unaudited Consolidated Statement of Changes in Equity for the six months to 30 September 2023                                                            

 


Share capital

Share premium

Merger  reserve

Translation reserve

Treasury  reserve

Convertible loan reserve

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000










Balance as at 1 April 2022

                500

      14,691

          1,138

             203

(4)

                          -  

                     3,348

             19,876

 









Comprehensive income

 








Loss for the period

                      -

                  -

                   -

                 -  

                 -  

                          -  

(1,777)

(1,777)

Other comprehensive income

 








Exchange differences on translation of overseas operations

                      -

                  -

                   -

                  2

                 -  

                          -  

 -

                       2

Total comprehensive income

                      -

                  -

                   -

                  2

                 -  

                          -  

(1,777)

(1,775)

 









Transactions with owners

 








IFRS 2 Share-based payments

-

-

-

-

-

-

17

17

Convertible Loan

-

-

-

-

-

11

-

11

Transactions with owners

-

-

-

-

-

11

17

28

Balance as at 30 Sept 2022

500

14,691

1,138

205

(4)

11

1,588

18,129

 









Comprehensive income

 








Profit for the period

-

-

-

-

-

-

994

994

Other comprehensive income

 








Exchange differences on translation of overseas operations

-

-

-

7

-

-

-

7

Total comprehensive income

-

-

-

7

-

-

994

1,001

 









Transactions with owners

 








IFRS2 Share-based payments

-

-

-

-

-

-

(1)

(1)

Transactions with owners

-

-

-

-

-

-

(1)

(1)

Balance as at 31 March 2023

500

14,691

1,138

212

(4)

11

2,581

19,129

 









Comprehensive income

 








Profit for the period

-

-

-

-

-

-

109

109

Other comprehensive income

 








Exchange differences on translation of overseas operations

-

-

-

(15)

-

-


(15)

Total comprehensive income

-

-

-

(15)

-

-

109

94

 









Transactions with owners

 








IFRS2 Share based payments

-

-

-

-

-

-

12

12

Convertible loan

-

-

-

-

-

-

-

-

Transactions with owners

-

-

-

-

-

-

12

12

Balance as at 30 Sept 2023

500

14,691

1,138

197

(4)

11

2,702

19,235

 

 

 

 

 

 

 

 Unaudited Consolidated Statement of Financial Position as at 30 September 2023                                                                                           

 



As at

30 September

As at

30 September

As at

31 March

 

Note

2023

Unaudited

£'000

2022

Unaudited

£'000

2023

Audited

£'000

Non-current assets

Intangible assets

 

10

 

23,397

 

23,277

 

23,382

Plant, property and equipment


1,125

1,034

1,103

Right of use assets

11

1,994

1,751

1,711

Deferred income tax asset


-

-

-

Amounts receivable under finance leases


-

39

4



26,516

26,101

26,200

Current assets

Inventories


 

2,813

 

1,352

 

2,426

Trade and other receivables


6,362

7,158

7,948

Corporation tax receivable


861

1,150

856

Cash and cash equivalents


874

1,174

1,119



10,910

10,834

12,349

Current liabilities

Trade and other payables


 

(8,532)

 

(8,806)

 

(9,196)

Borrowings

12

(5,847)

(897)

(1,031)

Right of use liability

12

(557)

(487)

(466)

Provisions


-

-

(74)



(14,936)

(10,190)

(10,767)

 

Current assets less current liabilities


 

(4,026)

 

644

 

1,582

Total assets less current liabilities


22,490

26,745

27,782

 

Non-current liabilities

Trade and other payables


 

 

(474)

 

 

(474)

 

 

(828)

Borrowings

12

(213)

(6,176)

(5,435)

Right of use liability

12

(1,273)

(1,258)

(1,113)

Provisions


(261)

(160)

(166)

Deferred income tax liability


(1,034)

(548)

(1,111)



(3,255)

(8,616)

(8,653)



 



Net assets


19,235

18,129

19,129

 

Equity

Share capital

 

 

13

 

 

500

 

 

500

 

 

500

Share premium


14,691

14,691

14,691

Merger reserve


1,138

1,138

1,138

Translation reserve


197

205

212

Treasury reserve


(4)

(4)

(4)

Convertible loan reserve


11

11

11

Retained earnings


2,702

1,588

2,581

Total equity attributable to owners of the parent


19,235

18,129

19,129


 Unaudited Consolidated Cash Flow Statement for the six months to 30 September 2023                                                                               

 



Six months to

30 September

Six months to

30 September

Year to

31 March


 

Note

2023

Unaudited

£'000

2022

Unaudited

£'000

2023

Audited

£'000

Net cash generated from operating activities

14

2,349

1,435

4,314

 

Cash flows from investing activities

Purchases of property, plant and equipment


 

 

(373)

 

 

(332)

 

 

(749)

Proceeds from sale of property, plant and equipment


-

-

-

Purchases of software


-

(8)

(12)

Capitalised Development costs


(1,102)

(1,447)

(2,658)

Net cash used in investing activities


(1,475)

(1,787)

(3,419)

 

Cash flows from financing activities

New convertible loan note


 

 

-

 

 

1,580

 

 

1,580

Loan arrangement fees


(42)

(13)

(36)

Repayment of bank loans


(469)

(512)

(1,095)

Repayment of obligations under lease agreements


(229)

(324)

(619)

Interest paid


(379)

(209)

(610)

Net cash generated from financing activities


(1,119)

522

(780)

 

Net (decrease)/increase in cash and cash equivalents


 

(245)

 

170

 

115

Cash and cash equivalents at beginning of period


1,119

1,004

1,004

Cash and cash equivalents at end of period


874

1,174

1,119


 

1.       Basis of preparation

 

The Group's interim results for the 6 months to 30 September 2023 (prior year 30 September 2022) were approved by the Board of Directors on 23 November 2023.

As permitted this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore is not fully in compliance with IFRS.

Trakm8 Holdings PLC ("Trakm8") is a public limited company incorporated in the United Kingdom under the Companies Act 2006. Trakm8 is domiciled in the United Kingdom and its ordinary shares are traded on AIM, the market operated by the London Stock Exchange plc.

 

The accounting policies adopted in the preparation of the interim financial statement are the same as those set out in the Group's annual financial statements for the year ended 31 March 2023. The financial statements have been prepared on the historical cost basis except for certain liabilities and share based payment liabilities which are measured at fair value.

The interim financial statements have not been audited or reviewed by Group's auditors pursuant to the Auditing Practice Board guidance on 'Review of Interim Financial Information' and do not include all of the information required for full annual financial statements.

 

The financial information contained in this report is condensed and does not constitute statutory accounts of the Group within the meaning of Section 434(3) of the Companies Act 2006. Statutory accounts for the year ended 31 March 2023 have been delivered to the Registrar of Companies. The audit report of those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Going concern

The consolidated interim financial statements are prepared on a going concern basis. The directors report that, having reviewed current performance and projections of its working capital and long term funding requirements, including assessments against the covenants agreed with our bank and downward sensitivity analysis, they are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements

 

2.       Risks and uncertainties

 

The Board has considered the principal risks and uncertainties for the remaining half of the financial year and determined that the risks presented in the 31 March 2023 Annual Report, described as follows, also remain relevant to the rest of the financial year: Deteriorating economic climate; Cyber-attack and data security; Attracting and maintaining high quality employees; Operating in a fast moving technology industry where we will always be at risk from new products being launched; Significant operational failure; Adverse mobile network changes; Access to long term and working capital; Electronics supply chain under constraint; Business disruption from communicable diseases. These are detailed on pages 20 to 22 of the 2023 of the Annual Report, a copy of which is available on the Group's website at www.trakm8.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.       Segmental Analysis

 

The chief operating decision maker ("CODM") is identified as the Board. It continues to define all the Group's trading under the single Integrated Telematics Technology segment and therefore review the results of the group as a whole. Consequently all of the Group's revenue, expenses, assets and liabilities are in respect of one Integrated Telematics Technology segment.

 

The Board as the CODM review the revenue streams of Integrated Fleet, Optimisation, Insurance and Automotive Solutions (Solutions) as part of their internal reporting. Solutions represents the sale of the Group's full vehicle telematics and optimisation services, engineering services, professional services and mapping solutions to customers.

 

A breakdown of revenue within these streams are as follows:

Six months to

30 September

Six months to

30 September

Year to

31 March

 

 

 

 

2023

Unaudited

£'000

2022

Unaudited

£'000

2023

Audited

£'000

Solutions:

8,537

9,012

20,197

Fleet and optimisation

4,908

4,828

11,475

Insurance and automotive

3,629

4,184

8,722


 

4.    Other income

Six months to 30 September

Six months to 30 September

Year to 31 March


2023

Unaudited

£'000

2022

Unaudited

£'000

2023

Audited

£'000

Grant income

-

16

16


-

16

16

 

5.    Profit/(Loss) per ordinary share attributable to the owners of the parent





Six months to 30 September

2023

Unaudited

£'000

Six months to 30 September

2022

Unaudited

£'000

Year to 31 March

2023

Audited

£'000

Profit/(Loss) attributable to the owners of the parent

94

(1,775)

(774)

 

6.  Adjusted profit/(loss) before tax




Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as follows:




Profit/(Loss) Before Tax

13

(2,413)

(1,243)

Exceptional costs

94

1,319

1,533

Share based payments

12

17

16

Adjusted profit/(loss) before tax

119

(1,077)

306

 

7.    Exceptional costs




 

 

 

 

 

 

Exceptional cost of sales

Six months to 30 September

2023

Unaudited

£'000

Six months to 30 September

2022

Unaudited

£'000

Year to 31 March

2023

Audited

£'000

Covid-19 - component acquisition

-

-

261

 

Exceptional administrative costs

-

-

261

Integration and restructuring costs

94

902

234

Covid-19 costs

-

417

1,038


94

1,319

1,272


94

1,319

1,533

 

The integration and restructuring costs in the current year relate to the Group's decision last year to implement a change in strategy to focus on the Insurance, Automotive and Optimisation sectors. These costs include final amounts implementing various cost reductions including professional fees.

 

Detailed explanation of prior year exceptional costs are detailed on page 66 of the 2023 Annual Report, a copy of which is available on the Group's website at www.trakm8.com.


 

8.         Finance costs


Six months to

30 September

Six months to

30 September

Year to

31 March


2023

Unaudited

£'000

2022

Unaudited

£'000

2023

Audited

£'000

Interest on bank loans

339

200

510

Amortisation of debts issue costs

52

30

58

Interest on Hire Purchase and similar agreements

51

38

100


442

268

668

 

9.     Earnings Per Ordinary Share




 

The earnings per Ordinary share have been calculated in accordance with IAS 33 using the profit for the period and the weighted average number of Ordinary shares in issue during the period as follow:

 


Six months to

30 September

Six months to

30 September

Year to

31 March

2023

Unaudited

2022

Unaudited

2023

Audited

Profit/(Loss) the year after taxation

109

(1,777)

(783)

Exceptional administrative costs

94

1,319

1,533

Share based payments

12

17

16

Tax effect of adjustments

(24)

(251)

(291)

Adjusted Profit/(Loss) after taxation

191

(692)

475

 

 

 

Number of Ordinary shares of 1p each

 

No. '000

50,004

 

No. '000

50,004

 

No. '000

50,004

Basic weighted average number of Ordinary shares of 1p each

50,004

50,004

50,004

Diluted weighted average number of Ordinary shares of 1p each

50,004

50,004

50,004

 

Basic earnings/(loss) per share

 

0.22p

 

(3.55p)

 

(1.57p)

Diluted earnings/(loss) per share

0.22p

(3.55p)

(1.57p)

Adjust for effects of: Exceptional costs

 

0.14p

 

2.14p

 

2.48p

Share based payments

0.02p

0.03p

0.03p

Adjusted basic earnings/(loss) per share

0.38p

(1.37p)

0.95p

Adjusted diluted earnings/(loss) per share

0.38p

(1.37p)

0.95p


 


10.         Intangible assets


 

 


 

 


 


 

 

                               


 

 

Goodwill

 

Intellectual property

 

Customer Relationships

 

 

Development Costs

Software

Total

Cost

£'000

£'000

£'000

£'000

£'000

£'000

As at 31 March 2022

10,417

1,920

100

22,153

1,807

36,397

Additions - Internal development

-

-

-

1,282

-

1,282

Additions - External purchases

-

-

-

165

8

173

As at 30 September 2022

10,417

1,920

100

23,600

1,815

37,852

Additions - Internal development

-

-

-

1,038

-

1,038

Additions - External purchases

-

-

-

173

4

177

As at 31 March 2023

10,417

1,920

100

24,811

1,819

39,067

Additions - Internal development

-

-

-

1,011

-

1,011

Additions - External purchases

-

-

-

91

-

91

As at 30 September 2023

10,417

1,920

100

25,913

1,819

40,169

Amortisation

As at 31 March 2022

 

-

 

1,920

 

100

 

9,917

 

1,448

 

13,385

Charge for period

-

-

-

1,085

105

1,190

As at 30 September 2022

-

1,920

100

11,002

1,553

14,575

Charge for period

-

-

-

1,040

70

1,110

As at 31 March 2023

-

1,920

100

12,042

1,623

15,685

Charge for period

-

-

-

1,053

34

1,087

As at 30 September 2023

-

1,920

100

13,095

1,657

16,772

 

Net book amount

As at 30 September 2023

 

 

10,417

 

 

-

 

 

-

 

 

12,818

 

 

162

 

 

23,397








As at 31 March 2023

10,417

-

-

12,769

196

23,382








As at 30 September 2022

10,417

-

-

12,598

262

23,277

 

As at 31 March 2022

 

10,417

 

-

 

-

 

12,236

 

359

 

23,012


 

11.         Right of use assets

 


 

 

Leased buildings

Furniture,

fixtures

and equipment

 

 

Computer equipment

 

 

Motor vehicles

 

 

 

Software

 

 

 

Total

COST

£'000

£'000

£'000

£'000

£'000

£'000

As at 31 March 2022

2,098

551

406

612

-

3,667

Additions

-

-

-

-

-

-

Disposals

-

-

-

-

-

-

As at 30 September 2022

2,098

551

406

612

-

3,667

Additions

-

32

96

91

-

219

Disposals

-

-

-

(96)

-

(96)

As at 31 March 2023

2,098

583

502

607

-

3,790

Additions

-

-

214

308

-

522

Disposals

-

-

-

(358)

-

(358)

As at 30 September 2023

2,098

583

716

557

-

3,954

 

AMORTISATION

As at 31 March 2022

 

 

794

 

 

194

 

 

234

 

 

413

 

 

-

 

 

1,635

Charge for period

133

35

36

77

-

281

Disposals

-

-

-

-

-

-

As at 30 September 2022

927

229

270

490

-

1,916

Charge for period

132

35

37

55

-

259

Disposals

-

-

-

(96)

-

(96)

As at 31 March 2023

1,059

264

307

449

-

2,079

Charge for period

115

36

40

48

-

239

Disposals

-

-


(358)

-

(358)

As at 30 September 2023

1,174

300

347

139

-

1,960

 

Net book amount







As at 30 September 2023

924

283

369

418

-

1,994








As at 31 March 2023

1,039

319

195

158

-

1,711








As at 30 September 2022

1,171

322

136

122

-

1,751








As at 31 March 2022

1,304

357

172

199

-

2,032


 

 


12.         Borrowings

 


As at 30 September 2023

As at September 2022

As at 31 March 2023


 




Current

Non-current

Current

Non-current

Current

Non-Current


 

 






£'000

£'000

£'000

£'000

£'000

£'000

Borrowings

4,273

213

897

4,602

1,031

3,861

Convertible unsecured loan note

1,574

-

-

1,574

-

1,574

Right of use liability

557

1,273

487

1,258

466

1,113

Totals

6,404

1,486

1,384

7,434

1,497

6,548

 

All borrowings are held in sterling and the Directors consider their carrying amount approximates to their fair values. Borrowings comprise of the following loans:

A £5.3m term loan with HSBC. The loan is secured by a fixed and floating charge on all the assets of the Group. It is repayable by 17 monthly instalments from 30 March 2023 of £86,000 and a final repayment of the outstanding balance on 31 July 2024 and bears interest at a floating rate of 5.1% over base rate. As at 30 September 2023 the Group owed £3.9m (March-23: £4.1m).

A £0.5m overdraft facility with HSBC. The overdraft facility bears an interest rate of 5.3% over LIBOR on the drawn amount. As at 30 September 2023 the Group had not used this overdraft facility.

A £1.5m growth capital loan with MEIF WM Debt LP. The loan bears a fixed interest rate of 8% per annum and is repayable in 15 quarterly instalments commencing 30 September 2021. The loan is secured by a secondary fixed and floating charge on all the assets of the Group. As at 30 September 2023 the Group owed £590K (March-23: £975K).

A £1.6m convertible unsecured loan note. The loan bears a fixed interest rate of 12% per annum, with a two-year term from its issue date 14 September 2022. The interest is payable quarterly from issue date until repayment on 13 September 2024. The Loan Note is convertible at a conversion price of 17.10p, a ten percent discount to the closing mid-market price of a Trakm8 ordinary share on 13 September 2022, the last practicable date prior to its completion.

 

The Group's obligations under right of use assets are secured by the lessors' title to the leased assets. Obligations under right of use assets by category at 30 September 2023 were as follows:


 

 

Freehold property

Furniture,

fixtures

and equipment

 

 

Computer equipment

 

 

 

Motor

vehicles

 

 

 

Software

Total

£'000

£'000

£'000

£'000

£'000

£'000

Current

238

25

143

7

559

Non-current

791

13

195

272

0

1271

Total

1,029

38

338

418

7

1,830

 

The maturity of obligations under right of use assets as at 30 September 2023 were as follows:

 


 

 

Freehold property

Furniture,

fixtures

and equipment

 

 

Computer equipment

 

 

 

Motor vehicles

 

 

 

Software

 

 

 

Total

£'000

£'000

£'000

£'000

£'000

£'000

Within 1 year

238

25

143

146

7

559

1 to 2 years

246

9

96

147

-

498

2 to 5 years

380

4

99

125

-

608

More than 5 years

165

-

-

-

-

165

Total

1,029

38

338

418

7

1,830









 

13.         Share Capital

A

As at September 2023

As at 30 September 2022

As at 31 March

2023


No's


No's


No's



000's

£'000

000's

£'000

000's

£'000

Authorised:







Ordinary shares of 1p each

200,000

2,000

200,000

2,000

200,000

2,000

Allotted, issued and fully paid:







Ordinary shares of 1p each

50,004

500

50,004

500

50,004

500

Movement in share capital:






£'000

As at 1 April 2022






            500

As at 30 September 2022






            500

As at 31 March 2023






            500

As at 30 September 2023






            500









 

 

The Company currently holds 29,000 Ordinary shares in treasury representing 0.06% (March-22: 0.06%) of the Company's issued share capital. The number of 1 pence Ordinary shares that the Company has in issue less the total number of Treasury shares is 49,975,002.


 

 

14.         Cash Generated from Operations

 

 

Six months to

30 September

Six months to

30 September

Year to

31 March

 

2023

2022

2023

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

Net profit/(loss) before taxation                                                                                                     

13

(2,413)

(1,243)

Depreciation                                                                                                                                          

381

384

767

(Profit)/Loss on disposal of fixed assets                                                                                          

209

88

222

Net bank and other interest                                                                                                              

429

239

618

Exceptional costs                                                                                                                                  

94

1,319

1,533

Amortisation of intangible asset

1,087

1,190

2,300

Exchange movements

(15)

2

9

Share based payments                                                                                                                        

12

17

16

Operating cash flows before movement in working capital

2,210

826

4,222

Movement in inventories

(387)

(30)

(1,104)

Movement in trade and other receivables

1,590

774

19

Movement in trade and other payables

(1,018)

1,133

1,877

Movement in provisions                                                                                                                     

21

21

101

Cash generated from operations before exceptional costs

2,416

2,724

5,115

Cash outflow from exceptional costs

(94)

(1,319)

(1,533)

Cash generated from operations

2,322

1,405

3,582

Interest received                                                                                                                                 

13

29

50

Income taxes received                                                                                                                        

14

1

682

Net cash-inflow from operating activities

2,349

1,435

4,314

 

Income taxes received are in relation to funds received in relation to Research and Development activities.

 

15.     Further Copies




This statement, full text of the Stock Exchange announcement and the results presentation can be found on the Group's website www.trakm8.com and also from the registered office of Trakm8 Holdings PLC. The address of the registered office is: Roman Way, Roman Park, Coleshill, North Warwickshire, B46 1HG.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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END
 
 
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