(Sharecast News) - Shares in fleet management, insurance telematics and connected vehicle technology specialist Trakm8 were sliding on Friday, after it warned that the conclusion of a large contract deal would slip into next financial year.
The AIM-traded firm said in late November that it was in negotiations to secure a significant optimisation software sales contract.
At the time, the board said it was confident in meeting market expectations for the 2024 financial year contingent on securing that contract.
However, the board said on Friday that concluding discussions on the contract within the current financial year was no longer viable, as it prioritised pursuing the best commercial outcome.
As a result, Trakm8 said it now expected to fall short of market expectations for 2024.
Additionally, it said challenges in trading throughout February and March, primarily stemming from persistent shortages in insurance capacity, further impacted uts performance.
That had led to lower-than-expected connections and recurring revenues for the 2024 period.
As a result, Trakm8 now projected turnover of £16.4m for the year, resulting in an adjusted loss before tax of £1.4m.
The company said its cash position was expected to be £0.4m on by the year-end on 31 March.
Despite the setbacks, Trakm8 said ongoing discussions regarding the contract offered some potential for revenue generation in the financial year ending 31 March 2025.
The company did acknowledge potential adverse effects on 2025 results, however, due to the lower levels of insurance connections.
That impact's extent remained uncertain, contingent on the return of insurance capacity and a potential demand surge, which the board said it was cautiously optimistic about.
At 1556 GMT, shares in Trakm8 Holdings were down 31.07% at 9.65p.
Reporting by Josh White for Sharecast.com.
Trakm8 Hldgs (TRAK)