Trakm8 Hldgs Share Chat (TRAK)

I read it as deferrals less R&D credits is £1m e.g. £2m deferrals less £1m R&D.

Even though that sounds bad, the question I was asking was really asking whether, if net debt included this and they were confident of paying the £1m back in the next few months then net debt yoy would be between £4.4m and £4.9m.

I must admit I struggled with this too.

The second sentence doesn't make sense to my eyes, therefore I focused on the first sentence: similar debt levels to last year - despite COVID-19, which can only be good news.

No, I've just figured it out. Needs a comma: The total value, net of the R&D tax credit cash, of government tax deferrals amounts to just under £1.0m.

So, in other words, they owe the gov £1m in deferrals, but that should be covered by the usual £1m R&D tax credit.

That would make more sense.

Can somebody please explain these sentences to me.

"We expect that Net debt excluding IFRS16 lease liabilities at the end of the Half Year will be in the range £5.4m to £5.9m (FY-2020: £5.6m). The total value, net of the R&D tax credit cash of government tax deferrals amounts to just under £1.0m"

The question I am asking is.... net debt is all things considered so does the £5.4m to £5.9m include the £1m tax deferrals? I assume it does

ins connections

up 10k at p5

i think they lost about 2.5k in april
may flat
then growth june july august
therefore i can see growth of around 6k per period yr on yr in h2

thanks dc

need something being a trakm8 shareholder feels like some sort of mental punishment regime seeing just how bad news you can but without knowing if there is a reward at the end

"Following couple of very strong months here at Trakm8 and increase in demand for our latest 360 fleet management platform I'm urgently looking for another super star to join my team."

https://www.linkedin.com/feed/update/urn:li:activity:6712775797318414336/

I am not saying I would read much into this, the guy is in sales but a little Monday morning pickup.

plus the point made on aa is really valid

i think the aa has delayed
but if aa get taken out sort debt out then we could see a material acceleration of smart breakdown as part of aa data strat which jw aludes to in his questions and the million connections

reading again this morning

if you assume the fleet connections are a one off hit then with a fair wind 275k connection by yr end is on.

overall orders yr on yr up 9% ytd is great news if the cash follows

not so keen on rev at 7.3m
or the loss of 1m unadjusted

so the full year guidance in november becomes really critical

in theory if they can have a strong h2 then flat rev yr on yr and a small profit would be good

Somebody on the other board gave anecdotal evidence to suggest that Trak's inability to get clients to pay was not typical. I assume it stems from this

"A number of our Fleet customers have suffered cash flow challenges as a result of Covid-19. Trakm8 has endeavoured to take a realistic long-term view in supporting these customers."

In QTX's last TU they state

"It should be noted, however, that the Company is in regular communication with a number of customers (predominantly in the UK) for which it is providing support in the form of payment relief or deferral."

I work in this industry (for a privately held company) and my experience is that in some areas demand grew BUT if you relied on the hospitality trade then things could be difficult for you (hopefully better now).

My only disappointment was there was no mention of this:

"Major automotive customer committed to a minimum of 45,000 units over next 12 months" from the Dec 9 half year results.

Is the commitment still happening or did Covid change it? I have to assume Covid caused a compromise to occur. If not, then you have to assume that most of those units are in play yet the numbers did not rise by much.

I'm still positive though.....

well on balance an ok update

i agree with many of the comments
not out of the woods but maybe with a fair run trakm8 could have a positive h2

next update in about 10 weeks

I'm in a similar position re the SP. I actually sold a small amount of my holding - 50,000 shares - during the last rise - primarily to de-risk - my portfolio was (and still in heavily tilted towards Trak. I got 22p each for them and the plan was to buy back in cheaper, but 100,000 instead (if it got low enough). However, in the meantime I've stuck the money elsewhere - with mixed results - but in the main I'm up on it by a couple of thousand I would say. - rather than down 1.5K as I would have been today had I left them in.

My dilemma - similar to yours is whether to sell some other shares, which (like the AA (which I don't own currently)) I think have quite a bit further to go and fill an ISA with Trak or whether to just leave myself in a less risky position and in shares which I believe have a good chance of doing rather well over the next year.

The thing with Trak is, it will either be a multi-bagger or it's bust. I think it's pretty binary in that sense.

My instinct says to leave it and see where we are in Nov. I think this will will rally over the next few days, but come the lead up to Nov it will fall back. At this point - my other investments may be such as to warrant a sell and re-invest here. Either way, I'm pretty much OK - because even if I miss a big rise here with the money from the 50,000 shares - I've still got a much larger core holding here and thus benefit from the rise.

All we can do is make read the information we've been given today and make our own calls, but I take your point about the bitter sweet rise. If it had gone down to say 15p, I would have jumped in for more on the back of that update..

All in all I think today's news, combined with their wish to answer (as best they can) shareholder questions with what appears to be down to earth responses makes me more confident than I have been for a long time.

In fairness, whilst the bears have spread a lot of half truths (we are now at cooking the books) I must admit that some of the information they said did hold true. Not the extreme stuff but things like the empty factory and hints of higher attrition.

Other than me (and Blonde) was anybody slightly annoyed with the share price increase? I say it tongue in cheek but I was looking to take any AA profit and pick up some more (to average down). AA has just dragged on and on.... When the AA things ends I guess I will have to pay more.

Very pleased with the answers to our little Q&A with JFW.

Thanks Dc_2 for providing the bulk of the questions.

I think they were, in the main, well answered.

Good Q&A, a useful addition to the Chairman's statement.

So the AA could yet take off...

thanks dc
a good read

Best answer for me was....

Q: Does Trakm8 adopt a Loss Leader marketing/sales strategy?
A: No, Trakm8 prices all business to be profitable.

Of course the bears will suggest that a 1p profit is still in line with this strategy. We had confirmation of the lack of use of the factory for its original purpose but how it came in hand for social distancing (I did not see that coming). And, after some clarification strong hints that 1 million served devices is still a goal(which they feel roadside assistance will help with)

It is there.

https://www.trakm8.com/wp-content/uploads/2020/09/Trakm8_Holdings_AGM_QA_17092020.pdf

yes looking forward to that
thanks for doing the work
usa usa usa usa lol

Will be able to see the replies to our questions, when they're posted on the website later today.

"the Directors have endeavoured to answer any shareholder questions received and have provided answers which will be posted on the Company's website by 10am after the conclusion of the AGM, under "Shareholder Notifications" on the AIM Rule 26 Information page."

Barclays like it: 19p to buy atm, 18p to sell. Mid-price up from 17p to 18.5p, up 8.8%.

plus orders now up 9% yr on yr which is supportive of a improving trend and a confirmed number

I thought it read quite well, given present circumstances.

We have to be realistic here - there is an unprecedented crisis and most companies are down in terms of revenues, profits etc...

Without taking the time to pick apart the RNS in its entirety, the narrative that runs through that update is this, imo:

We are successfully navigating this crisis. OK, so perhaps only just with heads above water, but navigating it all the same.

Significantly - and contrary to popular belief - this company is not going bust this year.

Be interesting to see if there are any buys from the new directors, now they are out of the closed period.

yes i was hoping for a bit better
interesting they have committed to a late nov update

As least it's a realistic review of their prospects but reassuringly with costs reducing they are likely to see it through to 21

profitability in 21