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*What other contract extensions were you expecting as most of the insurance projects only kicked off mid/late 22*
Personally, none.
However, I do wonder what happened to the AA and Directline - both large Trakm8 insurance contracts.
Are they still running? Or have they concluded and the slack taken up by several smaller contracts?
Perhaps someone here , more diligent with annual reports have the answer.
It’s coming together nicely: bit by bit, the company is laying the foundations for a game-changing performance in 23/24.
The SP is not reacting as one might expect, because the company is an “acquired taste”, but it’s worth hanging in there, because one day in the not-too-distant future the market will sit up and take notice.
After years of disappointment, the market just needs to be convinced by hard numbers. That’s why I still think we may have to wait till the autumn, and the results for the first half of 23/24, before reaping a decent reward for our seemingly endless patience.
What other contract extensions were you expecting as most of the insurance projects only kicked off mid/late 22
Basically saying: we've hit guidance.
That's my read of it anyway, and I've been wrong many times before...
DYOR
Just to add, Microlise talk about Trak in the usual way in their results (so nothing of note except perhaps capping the value of the loan to £1m (perhaps implying they see it as a loan and not a future purchase at this point?)
https://www.lse.co.uk/rns/SAAS/final-results-for-the-12-months-ended-31-dec22-v42rwytmm2dgwbu.html
Better read than me, completely missed the 'current market expectations' part. Very happy with the current announcements (obviously).
Some more (this time less than subtle) hints in this one:
*It is an important part of our current and future years' Fleet revenues and part of current market expectations.*
As compared to the Sainsbury's one:
*It is an important part of our current and future years' Fleet revenues.*
Bit more explicit.
I also like the sound of this:
*Under this contract extension Iceland will move onto the Trakm8 Insight platform thereby gaining access to Trakm8's other integrated services including connected care, crash notification & reconstruction and vehicle checks. A wide number of customer specific enhancements have been developed over the past twelve months to significantly improve Iceland's operational efficiency.*
Sounds like an upgrade.
4 Year renewal :o)
https://www.lse.co.uk/rns/TRAK/iceland-foods-awards-contract-extension-6ak5gj1gcfpm7m7.html
Wasn't intentionally misleading anyone DC just got mixed up with the extension and the term... whoop !
Keep wearing those Trak supplied rose tinted glasses and I'm sure it will all turn out well for you
Lol, not trying to correct you (it was hardly public) - you were not trying to mislead/misrepresent information like an earlier 12 month contract post.
Ah, I stand corrected.
Thanks
They did reveal the name in 2022 - page 4
https://www.trakm8.com/wp-content/uploads/Trakm8_Holdings_PLC_Full_Year_Results_Roadshow_Presentation_2022.pdf
As per usual, a trakm8 RNS, raises more questions than it answers.
I have to say, I'm surprised that the news of a 'Sainsbury's' contract has at least generated a little buying interest.
Perhaps they will do some marketing around it, now they have revealed the name.
Phew, a sell has been logged. Normal service resumes...
This does beg the question why, if the original contract runs until the end of June (it was announced on the 3rd July 2020 - not the end of July like the JustAQuickOne is implying), was it material to this year? I find it hard to believe there was a signing up bonus for an extension. More likely (and only a guess) - there was an early exit clause which would have impacted Trak had Sainsbury's moved away.
*That is unless this contract supersedes the clauses in the old contract which would mean 21 months ??*
This is typical practice and there will likely be a term in the newly negotiated deal to this effect or at the very least, a sunset clause in the original deal that envisages and operates on such an extension.
It would never make sense to have two contracts running alongside each other for the same work. What, for example, if a clause in one is breached but not the other? What about payment structures and milestones? It also couldn't be properly labeled an 'extension' if indeed it is a new contract.
'Which contract are you referring to? Assuming the Sainsbury's contract was signed today then I read it as 21 months, plus a 12 month option to extend.'
Yes the original contract ends July 23 so it must be a 17 month contract.
That is unless this contract supersedes the old contract which would mean 21 months ??
Particularly, if Raza is hoping to grab the Co out of admin, which is looking increasingly less and less likely a possibility.
The problem is, it is not on anyone's radar anymore really. I do believe is the news that tells the market guidance has been hit, but it's not explicit and confirmation will be needed in the April TU to make the connection more concrete. A re-rate should follow.
Interestingly, Microlise has cornered almost the entire big supermarket retail space ...this Trakm8 contract and it's renewal must be a little annoying for them...
Agreed, the uncertainty has now gone, the cost savings should support the company going forward.
It’s not asking much for the recent drift down from high teens to be reversed - especially as we are about to enter a “transformative year” for Trak in which the full benefit of the headcount reduction will come through.
"Cannot see a 12 month contract renewal pushing this into the high teens but positive news all the same."
Which contract are you referring to? Assuming the Sainsbury's contract was signed today then I read it as 21 months, plus a 12 month option to extend.
Cannot see a 12 month contract renewal pushing this into the high teens but positive news all the same.
So what does it all mean - previous RNSs tie the guidance to contract renewals (one assumes this is the key renewal). Suggests that will make guidance (on renewals alone) - so how will the recent staff cuts factor into the story, especially as the guidance has not been changed?
I agree. We also need more than high teens!
You'd like to think so. Requires volume though, so might be a slow progression.