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LONDON (Alliance News) - Telematics company Trakm8 Holdings PLC on Monday said it has won two contracts with German insurer Allianz SE as it reported a big rise in pretax profit for the year to the end of March and declared its maiden final dividend.
Trakm8 said it has won two initial contracts with Allianz to supply devices with uniquely developed software for Allianz's telematics business. The initial contract will cover a launch order of 5,000 devices.
Trakm8 will provide its 5 T10 Micro self-fit telematics devices under the deal and will develop software under the second contract.
Trakm8 also published its final results for the year to March 31, showing a 76% rise in pretax profit to GBP3.0 million from GBP1.7 million the prior year, as revenue grew 44% to GBP25.7 million from GBP17.9 million.
Revenue was pushed higher by organic growth of 28% in the year, plus contributions from the DCS Systems and Route Monkey business acquired during the year. Recurring revenue for the company grew 49% to GBP8.3 million, while orders received rose 29%. Trakm8 said it now has 151,000 telematics units reporting to its servers, up from 102,000 a year before.
Thanks to the robust results, Trakm8 said it will pay a final dividend of 2.00 pence per share, its first payout.
"The group has had a successful start to the new financial year consistent with its expectations for the year as whole, notwithstanding the new uncertainties created due to the Brexit vote. The latest contract win with Allianz together with our strong pipeline of further opportunities provide additional visibility in our outlook for this year. Therefore the board remains optimistic of a positive outlook for the year as a whole." said Executive Chairman John Watkins.
Trakm8 shares were up 11% to 261.22 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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