Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
A few minor changes .... only real change is below (and the removal of Penny Searles. as far as I can see.
https://www.trakm8.com/investors/company-information/corporate-governance/
"Despite prolonged downturn in the insurance market due to capacity and funding issues – in the long term our target is still to achieve 1 million connections to our systems. We currently have over 275,000. This substantial increase will provide the level of profitable growth and cash generation that should increase the Group’s share price substantially. The Group continues to focus on growth planning with a commitment to improving the recent insurance sales once the market improves, but also considering ways in which to promote fleet optimisation and to build on and diversify customer relationships. Progress against these plans is monitored by the Board."
Vs (Previously)
https://web.archive.org/web/20230929075048/https://www.trakm8.com/investors/company-information/corporate-governance/
"Despite the short-term impact of Covid-19, in the long term our target is still to achieve 1 million connections to our systems. We currently have over 318,000. This substantial increase will provide the level of profitable growth and cash generation that should increase the Group’s share price substantially. The Group has specific growth plans in place across its two business units: Insurance and Automotive and Fleet and Optimisation. Progress against these plans is monitored by the Board."
A tongue in cheek point... a substantial improvement of just 100% in the share price will bring it back to the days of the latter statement....lol
Here are some of their photos...
https://www.linkedin.com/posts/trakm8_cvshow2024-cvshow-fleet-activity-7188850752218386433-_E2f?utm_source=share&utm_medium=member_desktop
Finally got a return on my Trakm8 investment - managed to nab a notepad from their stand at the CV show. All in all, stand looked great and bigger than I was expecting. They even appeared to be busy.....
The show itself was ok and some of the big competitors were absent e.g. VisionTrack (who usually have the largest stand). Microlise were there in spirit (via TruTac). The show was definitely busier than last year but I'm not convinced it is back to pre-covid levels.
The CV show stand looks impressive - love the Iceland van.
https://www.linkedin.com/posts/nickguise_cvshow-cvshow2024-fleet-activity-7188254096057933824-NiMa?utm_source=share&utm_medium=member_desktop
A nice post re Iceland that includes compliments to Trakm8
"I am personally very proud that 2 of the awards that we have been shortlisted for (Technology Project of the Year and Delivery Solution of the Year) are for the program of works that I have led for the implementation of our fantastic new Delivery Scheduler System, which utilises AI optimisation software, developed in partnership with Trakm8 which has supported our wider Digital Transformation agenda."
https://www.linkedin.com/posts/seran-houlton-1a883812_retailsystemsawards2024-greatteamwork-collaboration-activity-7184520606380392449-XnBg?utm_source=share&utm_medium=member_desktop
Not sure what you mean by 'more store' - if the contract does get signed I expect this to be a bumper year as it rolls two profitable years into one (assuming insurance capacity [whatever that means] has got back on track).
My take on the update from ML is that they either think Trak is already a done deal (they don't need to acquire anymore, or it will come naturally) or they are not interested (because Trak does not have an international reach). I.e. no imminent deal
As of writing - 7 jobs!!!!
Corporate Sales Manager
Full Stack Software Engineer
Account Manager
Junior Application Engineer
Technical Support Advisor
Sales Director – Insurance & Automotive
Internal Sales Executive
https://www.trakm8.com/careers/
I now just think it was unfortunate timing. They had no choice to report the contract slippage. My bigger beef is why they had to announce it as material in the first place. Surely no contract has merit until it is signed.
This is good news but the timing.... all of that arranged within 5 working days of the profit warn over Easter. CLNs now with 50% extra interest and halve the conversion price (if I read it correctly). Don't get me wrong - it is better than going belly up.
That is great news for ML; although it does make me wonder the point of Trakm8 (to ML) if they can deliver this contract including home deliveries (does that include optimisation) without them.
Good point about their presentation - hopefully some breadcrumbs for us.
As for the share price - my worry on that last RNS was it sounded like the end of the road - so as long as that doesn't happen I can live with the current price (for now). I am a little more bullish following Allenby - but need the contract to be signed very soon to stop me slipping back into despair (lol).
Not a lot said but 2025 estimates remains broadly the same which implies Trak don't see an immediate recovery in insurance (probably not said correcly, more like the contract, if signed, compensates for loss of business). A significant loss of device connections (down to 275k) and the fact that no money was expected to change hands in FY24 (at the signing of the contract). No talk of fair price.
https://www.allenbycapital.com/client/trakm8-holdings-plc/
I am not sure you are looking at it incorrectly - another way to look at it (assuming the contract does indeed have a high value) is that the November update would have been the profit warning. Putting the contract to the side, the question is how long can Trak sustain poor performance in insurance.
Are we getting things out of proportion here?
i) A contract signing slipped into the next financial year - they did not say it was dead in the water.
ii) A couple of bad months in insurance - it isn't the only thing they do AND they have approximately the same amount of cash as forecast by Allenby 6 months earlier.
The swing from profit to loss is large, implies the contract is very significant.
Obviously if the contract does not get signed and the insurance side does not recover then we are in trouble.
Surely the swing is more of a reflection of the untapped value of the software contract and then the rest is made up from losses incurred in recent months. As KBYK points out the real problem is the £1.4m loss itself - how did that just suddenly happen when they were £0.4m in profit 6 months prior. Some must be attributable to the software contract itself but that is quite a difference.
That software contract raises a lot of questions (which we have gone over before but I like to vocalise):
i) How much is it worth
ii) Why is it front loaded to signing (or why is does it have such a large sign up value) - although, there may be a simple answer here i.e that they are not doing a SaaS but selling it as a stand-alone product so no on-going revenue.
iii) Why would anyone be so confident of signing it that they would announce it in the way they have done. i.e. 6 months early
iv) Like iii) above - why would Allenby buy into this.
v) I thought the client may be Microlise - this would explain iii) and iv) above BUT if ii) is correct about it being a one off purchase then it is unlikely to be ML as they would be paying circa (made up figure coming) £2m - they would be better taking the company.
vi) What work has been done - at what cost and has the client paid towards it - if so, why is this not under a contract.
vii) Why did Trak decide not to sign it this FY if they are signing their own death warrant by not doing so - even getting 25% of the contract value is worth it if you need the cash. Perhaps the contract is linked to renewed bank terms and this is the real issue (that the terms will not be strong enough to persuade the banks). If the software is done, the ongoing costs won't be much, so take as much cash as you can (if you are sinking)
viii). Will the contract ever be signed. Perhaps the client won't meet the demands of Trak.
This contract, or the announcement of it, has been the most perplexing thing I have read in a while. It just makes no sense. They obviously know something critical that we don't know (yeah doh!). What will Allenby say (they too look like ars*s at the moment for buying into this garbage).
As per usual, we are kept in the dark, left fearing for the worst (which is the very definition of Trakm8). The glimmer of hope for me is that they have enough cash to survive the next 6 months - enough time to get this contract over the line.
Finally, QTX pulled out of the insurance game a long time ago - looks like they called it right. If I am honest, Trak always appear to be behind the curve - take the RH800 - now multi camera DVR - whilst not a complete package, mDVRs have been out for donkey's years.
Waffle over.....
I know I have Stockholm syndrome when it comes to this share....On reflection of today's announcement, was it really that bad - I mean, is this really the last nail in the coffin - I am not so sure?
1) From their H1 update they had £0.87m in cash with net outgoings of £0.25m. They now have approximately £0.4m (and this was expected by Allenby due to capital investment). If they maintain the same burn as H1 going forward then 6 months are assured. They should even do better if these data centres do provide immediate ROI. Obviously there are bank loans to pay back soon.
2) This is the big one for me. If JW is being honest (no clue) about the motive for not signing the contract (not the best commercial outcome) then it implies a deal was on the table. If Trakm8 are in such a desperate state you would expect them to sign whatever i.e. something is better than nothing going into the abyss. Obviously, if the talks broke down then they should not be saying there is a deal is still to be had. Main point it why sign your own death warrant.
Don't get me wrong - the RNS does not read well and JW and the team excel in disappointment. I sometimes wonder if they just hate the share holders and long for the share price to be so low that they can take it private.