Quartix Tech Share News (QTX)

LONDON (Alliance News) - Vehicle tracking systems provider Quartix Holdings PLC said Monday that increased pricing pressure in the insurance telematics market is expected to result in flat year-on-year revenue for 2018.

The company added that profit for 2018, however, is expected to remain in line with market expectations. The market consensus for 2018 is for adjusted earnings before interest, taxes, depreciation and amortisation of GBP7.55 million and revenue of GBP26.10 million, according to the company.

Quartix also expects the increased pricing pressure to lead to lower business volume in the telematics markets and further decline in insurance revenue for 2019.

"In recent weeks the company has become aware of increased pricing pressure in the insurance telematics market generally and that some telematics suppliers are now offering levels of pricing which it believes are at, or close to, the cost of service delivery. As such, unless market conditions change, the board anticipates that its volume of business in this sector will decline further," the company said.

Quartix's trading for the two-month period to February 28 was in line to deliver management's expectations for the full year. New product installations in the US and France in the first quarter were 60% ahead of the same period last year.