Trakm8 Holdings (LON:TRAK) reported their H1 results today and as expected another loss followed but a few things were displaying the start of a turnaround that is taking place.
- Cost cuts across the entire company: headcount, factory, R&D led to substantial savings
- Cash generation massively improved from -400k last year to +1.4m now.
- AA customer committed to 45k units ordered within the next 12 months which is a substantial contract considering they have 150k devices now in Insurance & Automotive. Alstrad, ByMiles, LexisNexis all shipping now new devices and 2 more insurers to start in December and January. The Insurance side seems to have stabilized and start to grow soon.
- Fleet, where best margins are at, continues to rise nicely and new contracts are secured.
This looks to be the bottom to me, as evidenced also by the recent rise in anticipation of good news. If they finish the year profitably as announced today then that means the company is back on track towards profitability and from a much better position than they were before due to the new products they developed.
Rise in £ is also set to help them a lot in 2020.
I hold and although I had lost faith recently, I start to change my mind after the recent results. The format of the RNS and language used is finally at par with what it should have been, telling it as it is.
The board is one of secrecy and incompetence. This is the most important event of the year for them, along with final results. And they have no date, they do not reply to emails since last week and have everyone guessing.
I have to admit maybe I underestimated the TV angle for FUTR's potential in generating lots of ££. Zillah talks as if it's going to be very big very soon, a partnership with Netflix or BBC sounds like a game changer.
They are killing it with Black Friday/Cyber Monday and are launching into the TV space with Barcoft and their existing content.
These are not priced in, the company has huge success with everything it tried before and with Zillah so optimistic there's no reason to believe this will not continue.
Q1 must have been fantastic with her decision to accelerate payments for Mobile Nations and bring those websites into Vanilla before Black Friday. They smashed all forecasts and dominated the first page of Google.
The mobile nations sites started off with an acceleration for the first 3 months and then are down since March but overall doing well. And just wait until they add them to the Vanilla Platform, that's when the real boost will happen.
Techradar is their single biggest most important revenue/profit bringer as far as I can tell. And with that one being +62% up until September and already +9% in October I think is the real money maker.
MoNa made at least 11.5m$ EBTDA in 7 months. And those are the slow summer months. That's £9m EBITDA just from Mona.
Full Year numbers will catch the market by surprise IMO/DYOR.