(Alliance News) - Vehicle tracking company Trakm8 Holdings PLC on Friday said it has now agreed a two-year contract with an undisclosed "major UK food retailer" after delays.
Shares in Trakm8 were up 34% at 22.70 pence in London in morning trading.
The fleet optimisation contract was expected in March but the Covid-19 pandemic led to delays. The contract has an initial period of two years and involves using Trakm8's algorithm to optimise home deliveries.
"There will be some initial customer funded engineering integration activity in advance of product going live later in the year," said Birmingham-headquartered Trakm8.
On Tuesday this week, Trakm8 said its loss narrowed in its most recent financial year thanks to higher revenue combined with reduced cost of sales, as well as lower administrative costs.
The vehicle tracking company posted a pretax loss of GBP1.7 million for its year ended March 31, sharply narrowed from a GP3.6 million loss the year before.
The narrowed loss was attributed to a 2.5% rise in revenue to GBP19.6 million from GBP19.1 million while cost of sales fell 10% to GBP8.0 million from GBP8.9 million. This gave a gross profit of GBP11.6 million, up 13% from GBP10.3 million in financial 2019.
Additionally, total administrative costs fell 5.7% to GBP13.2 million from GBP14.0 million.
By Anna Farley; annafarley@alliancenews.com
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Trakm8 Hldgs (TRAK)