(Sharecast News) - Telematics and data insight specialist Trakm8 reported total first-half revenue of £8.54m on Friday, slightly down from the £9.01m it achieved in the same timeframe last year.
The AIM-traded firm said recurring revenue for the six months ended 30 September totalled £5.23m, showing a modest increase from £5.08m a year earlier.
It managed to secure a profit before tax of £0.01m, swinging from a £2.41m loss before tax year-on-year.
Adjusted profit before tax came in at £0.12m, compared to a £1.08m adjusted loss a year ago, while profit after tax amounted to £0.09m, compared to a loss of £1.78m in the first half of the 2023 financial year.
Trakm8 put the decrease in revenue down to reduced demand, driven by changes in insurance capacity.
However, the company said it achieved significant improvements in gross margins while reducing overheads, ultimately eliminating losses and shifting towards profitability.
Cash generated from operations showed a substantial increase of about 63% compared to last year's period.
Looking ahead, Trakm8 anticipated that insurance capacity was unlikely to recover significantly during the rest of 2023, but new customers were expected to boost demand in the second half into 2024, with a full recovery anticipated for the 2025 financial year.
The company also foresaw a positive impact on its performance in the 2025 period from a major automotive customer.
Trakm8 said it had strategically invested in a second data centre to reduce operational costs by £0.6m annually.
Additionally, the company was optimistic about concluding a substantial optimisation software contract sale in 2024, which would contribute significantly to its financial outlook.
The board was confident in meeting market expectations, contingent on securing a substantial software sale.
Reporting by Josh White for Sharecast.com.
Trakm8 Hldgs (TRAK)