Vehicle telematics systems provider Quartix (QTX:AIM) said that trading for the four-month period to 30 April 2020 was ahead of last year and the company still expects the Covid-19 pandemic to have limited impact on first half profits and cash flow.
New fleet installations in May fell 25%, compared to a 60% fall recorded for April.
‘The resumption of some business activity on 11 May helped a strong rebound in France and the company will provide a full breakdown by territory in its interim results, which will be released at the end of July,’ Quartix said.
SUBSCRIPTIONS SANCTUARY
The impact on Quartix’s subscription base has been largely capped, with a slight UK decline offset by growth in other regions.
However, with the company now providing payment relief or deferral to 6% of its customer base by value, Quartix is unable to provide guidance beyond the very near-term, which makes the overall impact on the company difficult to assess until the UK Government’s financial support schemes are withdrawn in the autumn.
Despite the obvious uncertainties created by the virus Quartix still has £9.5m of cash on the balance sheet, which can be used to offset damage from any worsening of conditions, or take advantage of opportunities that may emerge.
‘Despite the economic impact of Covid-19, Quartix’s performance to date has remained robust with churn in its small and medium-sized enterprise customer base limited due to the Government Support Schemes in place,’ said Megabuyte analyst Patrick Stewart.
LIMITED CLARITY
‘As a result, we will gain a clearer picture on the overall impact on Quartix's performance as these are lifted although, on the flip side, the company will benefit from being able to accelerate its installation trajectory as lockdown conditions are eased.’
Quartix shares slipped around 2.5% lower on Tuesday to 376p, valuing the business at approximately £180m.
