LONDON (Alliance News) - Trakm8 Holdings PLC said Monday its annual profits and revenue increased after a year of "very strong progress".
For the year ended March, the telematics and data supply company increased its pretax profit 71% to GBP1.2 million from GBP700,000 the year before.
The company increased its revenue 12% to GBP30.1 million from GBP26.8 million.
Trakm8 said the "significant improvement" in profit was driven by the "strong solutions" revenue growth.
The company's "solutions" revenue increased 26% to GBP26.8 million from GBP21.3 million the previous year. Its "solutions" sales comprise revenues from customers where they pay for service fees in addition to the cost of the hardware, installation and other bespoke services.
Growth from its telematics connections in its core Fleet, Insurance & Automotive sectors and "continued growth" in sales of Optimisation solutions generated the revenue jump.
Trakm8 is not proposing a dividend for the year - the company did not offer a dividend in 2017.
Looking ahead, the company expects its revenue in the first half of 2019 to be below 2018's figure. This is due to the "Customer inventory build-up" in the fourth quarter of 2018 and "terminated Contract Electronics Manufacturing activities".
Trakm8 expects its full year results for the 2019 financial year to be in line with expectations and "higher than financial year 2018". The company expects to expand its international business in Europe and Asia whilst continuing to grow its domestic business in the UK.
Executive Chairman John Watkins said: "It is pleasing to report very strong progress during the past year. Our ambition to reduce annual operating costs by GBP1.5 million was successfully achieved by the half year, and delivered full year savings of GBP2 million with these savings reinvested into our sales and marketing resources. Coupled with our decision to continue a high level of investment in R&D, this resulted in core telematics service revenues increasing by 26% and adjusted profit before tax having increased by 142%.
"We have continued to develop market leading software and hardware solutions and during the year launched the new Insight software platform and the RoadHawk 600, which have provided the group with a strong pipeline of opportunities. During the year, we announced new contracts with Intelematics, Calor Gas UK and Mecalac, and a number of contract extensions with Marmalade, Iceland Foods, and Direct Line Group."
Shares in Trakm8 were down 5.8% Monday at 98.88 pence each.
Trakm8 Hldgs (TRAK)