TIDMTRAK
RNS Number : 2837W
Trakm8 Holdings PLC
26 April 2016
26 April 2016
TRAKM8 HOLDINGS PLC
("Trakm8", the "Company" or the "Group")
Year End Trading Update
Trakm8, the AIM quoted telematics and data provider to the
global market place, today announces a trading update for its
financial year ended 31st March 2016.
Highlights
-- Revenues up 44% year on year
o Strong organic growth with like for like revenues up 28% year
on year
o Recurring revenue up c.50% to over GBP8m
-- Orders received up 29% year on year (like for like basis),
151,000 units now reporting to our servers
-- Reduced year-end net debt* of GBP0.97m, reflecting strong cash generation
-- Maiden 2p final dividend per share to be proposed
-- Recent substantial contract wins with Iceland Foods, Kubota UK, the AA and BT Fleet
-- Two acquisitions completed in the year; integrations proceeding to plan
and trading in line with expectations
-- Appointment of J.P. Morgan Cazenove as Financial Adviser to the Company
* Net debt defined as bank debt (GBP4.84m) less gross cash
(GBP3.87m).
Trading
Trakm8 has achieved significant growth in revenues and profits
compared to the prior year. Growth in group profitability is in
line with expectations and driven by year on year revenue growth of
44% and a small improvement in gross margins.
Strong cash generation during the second half of the year
resulted in year end net debt of GBP0.97m, being GBP1.3m better
than expectations.
Like for like orders (excluding the DCS business and Route
Monkey which were acquired during the year) were 29% higher than
the previous year. Route Monkey recently received a three year
contract extension from Iceland Foods amounting to circa GBP0.5m.
In addition the Group has recently signed a number of new large
contracts which are expected to start generating value for the
Group in the new financial year.
Revenues on a like for like basis were 28% higher than last
year. The DCS business and Route Monkey achieved revenues in line
with our projections at the time of these acquisitions.
We achieved another large increase in connections with
approximately 151,000 units reporting to our servers by year end
(2015: approximately 102,000). On the back of this increase,
recurring revenues increased strongly, being approximately 50%
higher than the previous year at over GBP8m (2015: GBP5.6m).
BOX Telematics has further benefitted from the growth of
manufacturing devices for Trakm8 and from the decision to reduce
the level of lower margin product sales to third parties. Over
153,000 units were built and shipped both to other telematics
companies and to report to our servers in the financial year as a
whole, an increase of 51% compared to last year.
The Group continues to invest heavily in internal resources to
manage its growth, particularly in engineering where the
opportunities for new integrated camera, telematics and
optimisation solutions has resulted in a significantly higher
investment in IP.
The pipeline of new customer opportunities is growing, following
investment to strengthen our sales force and marketing
activities.
Outlook
The outlook for the new financial year is encouraging with
strong revenue visibility reflecting the strength of Trakm8's
business model. This is supported by recent contract wins including
BT Fleet who will be reselling our Trakm8 solutions to its existing
and new customers.
The Board is planning a significant increase in sales and
marketing investment to support the strength of the Company's new
products, solutions and algorithms in this fast growing market.
The full year benefit of the two acquisitions, recent contract
wins, including the important new reseller contracts with the AA
and BT Fleet, and the continuous increase in devices reporting to
our servers means the Board expects another strong trading
performance in the new financial year.
Appointment of Financial Adviser
J.P. Morgan Cazenove were appointed as the Company's Financial
Adviser this month. The appointment reflects the Board's belief
that it is appropriate to broaden its advisory relationships given
the evolution of the business and the telematics industry and to
help us take the next steps in the Company's development.
Dividend
The Board has considered the payment of a dividend in light of
the Group's strong financial performance and its confidence in
Trakm8's prospects. As a result, the Board intends proposing a
maiden final dividend of 2 pence per ordinary share subject to
shareholder approval at the Company's AGM in September.
Notice of Results
The Group expects to announce its final results for the year
ended 31 March 2016 on Monday, 4 July 2016.
John Watkins, Executive Chairman of Trakm8 commented:
"Trakm8 has continued to build on the momentum established over
recent years based on strong organic growth supplemented by
selective acquisitions. These acquisitions and our own significant
investment has given the Group an unrivalled portfolio of in-house
capabilities to take to market.
"The cash generative model of our business not only enables us
to make considerable investments in capital assets, IP and
acquisitions, but also now to join the list of AIM companies paying
dividends.
"We are well positioned to build on the excellent platform that
we have established and to capitalise on the outstanding current
market opportunities."
- ends-
Trakm8 Holdings plc +44 (0) 174 785 8444
John Watkins, Executive
Chairman
James Hedges, Finance
Director
J.P. Morgan Cazenove
(Financial Adviser) +44 (0) 20 7742 4000
Robert Constant
Wendy Hohmann
finnCap (Nomad and broker) +44 (0) 20 7220 0500
Ed Frisby / Simon Hicks
- corporate finance
Joanna Scott - corporate
broking
MHP Communications +44 (0) 20 3128 8100
Reg Hoare
Jade Neal
About Trakm8
Trakm8 is a UK based Big Data company utilising telematics as
its primary enabler. Through IP owned technology, over two 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTAKPDNFBKDOQB
(END) Dow Jones Newswires
April 26, 2016 02:00 ET (06:00 GMT)
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