Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Digging deeper, does this explain i) the lack of insurance capacity previously mentioned [see last sentence in quote] ii) the new found confidence that insurance is back. Then there is the reference to ByMiles.... lots to read into this. Why is Trakm8's share price so sh*t........
"The partnership, which is expected to be worth £50m of GWP in the first 12 months, also covers commercial van and includes product distribution through Freedom’s sister company Stella Woman.
Zurich has previously had telematics arrangements with the likes of Carrot, By Miles and My Policy but now will work on a solus agreement in this area with Freedom.
The MGA [Freedom Services] had to pause its telematics insurance offering last year when Italian insurer Unipol withdrew from the UK"
https://www.insuranceage.co.uk/insight/7954772/zurich-strikes-five-year-capacity-deal-with-mga-freedom-services
Found it
https://www.zurich.co.uk/media-centre/zurich-uk-and-freedom-services-joint-partnership
New update, somewhat delayed from the RNS - doesn't really say much but not bad. A slight adjustment to the forecast - PBT, debt and gross cash.
https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2024/05/20240501-Trakm8-plc-TRAK.L-Allenby-Capital-Update.pdf?c4125=on
Trakm8 reviews are typically polarised but this one stood out. Ok, there is no real information. One assumes the negotiations have already happened (if this is a real review) so not exactly news. Anyway.....
"Joe is fantastic, his customer service is always amazing and he cares about the customer. We are in negotiation for the next 5 years of our account with Trakm8. 5 stars and thank you." - March 2024
https://www.trustpilot.com/reviews/65f2f0923742882d08941c0f
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.