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(TRAK) Trakm8 Holdings plc Share Chat

Discussion in 'General Share Chat (TRAK)' started by Bristol87, Jun 21, 2015.

  1. Groucho

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  3. Groucho

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    25 February 2021


    Trakm8 Holdings plc

    ('Trakm8' or the 'Group')



    Contract Award and Trading Update


    Trakm8 Holdings plc (AIM:TRAK), a leading telematics and data supplier to global markets, is pleased to announce that it has been awarded a long term contract to deploy over a 1,000 RH600 integrated telematics and cameras systems to The Parts Alliance Group.


    Trakm8 will supply the full fleet management and driver behaviour solutions based on Insight, the Group's leading analytics and data platform.


    Outlook

    Revenue in the second half will be approximately 15% up on the first half, despite the second and third Covid-19 lock-downs which have had a significant adverse effect on our Insurance customers as a result of the temporary suspension of driving tests. Full year revenue is expected to be approximately 20% lower than FY20, with Covid-19 compromising what would otherwise have been a year of growth. This will result in a modest adjusted loss before tax broadly similar to last year.

    Whilst disappointed that Covid-19 has pushed back the return to material growth by 12 months, the Directors are confident that the Group is well positioned to return to growth driven by its expanding Insurance customer base and continually improving Fleet sales team performance.
     
  4. Groucho

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    28 April 2021

    Trakm8 Holdings plc

    ("Trakm8", the "Group" or the "Company")

    Year End Trading Update

    Trading Update

    Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider today announces a trading update for its financial year ended 31 March 2021.

    Revenues for the full year ending 31 March 2021 of £16.0 million are in line with previous guidance and 18% less than last year. As expected, Covid-19 materially impacted the Company in the last three months of the year, with significantly reduced hardware shipments to our Insurance customers and with a less significant, but meaningful, impact on Fleet customers.

    Due to the strong cost reduction actions the Group expects to achieve an adjusted loss for the financial year in line with previous guidance of circa £0.3m. (FY-2020: Adjusted loss of £0.2m).

    Cash generation from operations has been strong and at 31 March 2021 the Group's net debt was £4.9m (£6.8m after IFRS 16 changes) which is £0.8m lower than at 31 March 2020 and a £0.7m reduction since Sept 2020. At the year end the Group had £2.4m of cash on hand and a further £0.5m of available funds under an overdraft facility.

    During the year connections increased by 4% to 254,000 (FY-2020: 245,000). Fleet connections reduced by 10% to 70,000 (FY-2020: 77,000), Insurance & Automotive connections increased by 9% to 184,000 (FY-2020: 168,000). Despite the increase in Insurance & Automotive connections, revenues were lower in the financial year from Insurance & Automotive as a result of the strategy to broaden the footprint outside young driver telematics which has resulted in new commercial offerings with lower revenue per unit, but still maintaining gross margins. Recurring Revenues in the year amounted to £9.4m representing 59% of Group revenues, 4% lower than the prior year due to the reduction in the higher value Fleet connections.

    We were pleased to advise during the year that major contract awards were received from The Parts Alliance Group and from a major UK Retailer. As predicted, further insurance client wins were also secured.

    Further new products and solutions were introduced to the market that will continue to improve the costs and functionality of the solutions we sell.

    Covid-19 Update

    The Company believes Covid-19 lockdowns have reduced revenues in the financial year by almost £4m and as a result, profitability. However, the Company has benefitted from £0.9m from the Job Retention scheme support and from £1.8m VAT, PAYE & NI payment deferments. The Company has reached agreement with HMRC on a time to pay agreement to spread this liability almost equally over the next two financial years. The Company has encountered many component shortages but through the vertical integration of design and manufacturing hardware has managed to avoid this having an adverse impact on revenues.

    Bank Facilities Update

    Trakm8 is pleased to announce a renewal of our facilities with HSBC. The new agreements comprise a Term Loan of £5.3m and a £0.5m overdraft facility. Capital repayments commence in September 2021, with appropriate 'carve out' in covenants to cover Covid-19. These facilities are in place until October 2023. In addition, the capital repayment holiday of our loan with Maven (£1.4m outstanding) has been extended, such that repayments will now re-commence in September 2021. Interest on the loans continues to be paid monthly.

    Outlook

    Covid-19 has continued to have an impact during April and there remains some ongoing uncertainty for the coming months. The resumption of driving tests occurred only on 22nd April and so it is too early to know when there will be an increased take up of telematics insurance policies. Demand in the fleet sector is already improving.

    Subject to there not being any further Covid-19 related lockdowns or significant component supply issues that cannot be resolved quickly, the Company is confident that the financial performance will significantly improve for the new financial year and expect revenues will revert to pre-Covid levels, which with recently lower costs should lead to a profitable business for the year.
     
  5. Groucho

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    18 March 2022

    Trakm8 Holdings plc

    ('Trakm8' or the 'Company')



    Contract Extension

    Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider is pleased to announce that its contract with Ingenie Limited ("Ingenie") has been extended for a further three years.

    In addition, the contract has been broadened for Trakm8 to provide additional self-fit telematic devices.

    Ingenie is one of the leading Insurance technology providers using telematic derived data to improve driver risk with innovative driver coaching techniques.

    John Watkins, Executive Chairman, commented: "The contract with Ingenie has been in place for three years and it is pleasing to extend the scope and duration. We are pleased to continue our association with Ingenie as the market recovers from Covid."
     
  7. Groucho

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    22 March 2022

    Trakm8 Holdings plc

    ('Trakm8' or the 'Company')


    Contract Award

    Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider is pleased to announce that it has been awarded a contract with Adiona Technologies to provide data and devices for Adiona's insurance propositions. The partnership will also see Trakm8 and Adiona working alongside Duck Creek Technologies and World Programming.

    Initial analysis of the Trakm8 journey data, confirms the level of detail and real-time frequency will support Adiona's 4 core pillars of; Pricing and Selection, Risk Pool Management, Crash and Claim and Customer Engagement.

    This contract is expected to commence writing insurance policies in Autumn 2022.

    John Watkins, Executive Chairman, commented: "We are delighted to be working with Adiona as they launch their highly innovative AI based telematics insurance products. Adiona aim to disrupt the insurance market with their approach to telematics based solutions with a customer centric focus being a key driver."

    Paul Harvey, CEO of Adiona Technologies said "We have already experienced Trakm8's agile and responsive support in preparing early prototypes and look forward to creating exciting solutions together."
     
  8. Groucho

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    29 March 2022

    Trakm8 Holdings plc

    ("Trakm8", the "Group" or the "Company")

    Contract Extension

    Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider is pleased to announce that its contract with Drvn (previously Intelematics Europe) has been extended for a further three years.

    In addition, the contract has been extended for Trakm8 to provided further services and support.

    Drvn is a joint venture between several roadside assistance companies in Europe and provides connected car technology that is underpinned with devices and data from Trakm8.

    John Watkins, Executive Chairman, commented: "The contract with Drvn has been in place for four years and it is pleasing to extend the scope and duration of the contract. We hope that now lockdowns are behind us that take up of connect car policies with the various European clubs will increase."
     
  9. Groucho

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    26 April 2022

    Trakm8 Holdings plc

    ("Trakm8", the "Group" or the "Company")

    Trading Update

    Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, today announces a trading update for its financial year ended 31 March 2022.

    Revenues for the full year ended 31 March 2022 were £18.2m, which is 14% more than the prior financial year. Revenues from Fleet customers amounted to £11.3m, 19% more than last year. In a year that started in lockdown and when driving tests and availability of second hand cars were negatively impacted by Covid-19, revenues from Insurance customers amounted to £6.9m, 7% more than last year as a result of a strong fourth quarter for new policy sales and new customer launches.

    The Group expects to achieve an adjusted profit before tax for the financial year in line with previous guidance of circa £7k (FY-2021: Adjusted loss of £0.3m) and a profit after tax of £0.2m (FY-2021: Loss after tax of £1.2m)

    Cash generation from operating activities at £3.6m, has been as expected and at 31 March 2022 the Group net debt was £5.4m (£7.0m after IFRS 16 changes), which is £0.5m higher than as at 31 March 2021 and a £0.8m reduction since 30 Sept 2021. At the year end, the Group had £1.0m of cash on hand and a further £0.5m of available funds under an overdraft facility. During the financial year, the Group reduced the long term liability to HMRC by £0.9m to £0.9m in line with an agreement reached last year.

    During the year, connections increased by 4% to 264,000 (FY-2021: 254,000). Fleet connections increased by 1% to 71,000 (FY-2021: 70,000), Insurance & Automotive connections increased by 5% to 193,000 (FY-2021: 184,000). The resulting recurring revenues in the year increased by 5% to £9.8m, representing 54% of Group revenues.

    Software revenues increased by 149% to £1.3m, representing 7% of Group revenues.

    The Group has had to deal with a number of significant supply chain challenges but, with the benefit of our fully integrated business model, has successfully avoided any meaningful interruptions to customer deliveries during the period. There has however been an impact on the Group's costs and we estimate this amounted to £0.2m during the financial year.

    We were pleased to advise during the year that several major contract awards, extensions and renewals were secured.

    Further new products and solutions were introduced to the market that will continue to improve the costs and functionality of the solutions we sell.



    Outlook

    A major challenge for Trakm8 post Covid-19 and now the war in Ukraine will be the security of component supply where it faces challenges weekly of varying significance. However, the Group continues to take steps to minimise these risks.

    There are a number of Fleet deployment contract renewals during 2022 which are important to the outcome for the year and the timing of which will lead to Group revenue being second half weighted. Growth in Insurance policy sales will be dependent on the level of activity from the new customers which have been announced, alongside a return to more normal sales at existing customers.

    Like many businesses, Trakm8 is currently experiencing significant salary and component inflationary pressures. Whilst it is unlikely that the Group will be able to mitigate all of these cost increases, it is taking what steps it can to achieve this.

    The Board looks forward to providing an update on Trakm8's trading performance in the current financial year at the time of publication of the Group's results for the year ended 31 March 2022.
     
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