The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Sorry to be a bore on this, but where do the cost savings from the staff cuts show in your figures? Surely, there has to be some uplift in forecast if Trak were on track. I hope the TU gives an reasonable explanation to how the cuts factor in and what they did with the surplus money from the CLN.
Just to add, Microlise talk about Trak in the usual way in their results (so nothing of note except perhaps capping the value of the loan to £1m (perhaps implying they see it as a loan and not a future purchase at this point?)
https://www.lse.co.uk/rns/SAAS/final-results-for-the-12-months-ended-31-dec22-v42rwytmm2dgwbu.html
4 Year renewal :o)
https://www.lse.co.uk/rns/TRAK/iceland-foods-awards-contract-extension-6ak5gj1gcfpm7m7.html
They did reveal the name in 2022 - page 4
https://www.trakm8.com/wp-content/uploads/Trakm8_Holdings_PLC_Full_Year_Results_Roadshow_Presentation_2022.pdf
This does beg the question why, if the original contract runs until the end of June (it was announced on the 3rd July 2020 - not the end of July like the JustAQuickOne is implying), was it material to this year? I find it hard to believe there was a signing up bonus for an extension. More likely (and only a guess) - there was an early exit clause which would have impacted Trak had Sainsbury's moved away.
"Cannot see a 12 month contract renewal pushing this into the high teens but positive news all the same."
Which contract are you referring to? Assuming the Sainsbury's contract was signed today then I read it as 21 months, plus a 12 month option to extend.
So what does it all mean - previous RNSs tie the guidance to contract renewals (one assumes this is the key renewal). Suggests that will make guidance (on renewals alone) - so how will the recent staff cuts factor into the story, especially as the guidance has not been changed?
At least this is something....but has no minimal value
"Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider is pleased to announce that the Company has been awarded a new contract with Howden Driving Data ("Howden").
Under the terms of this contract Trakm8 will provide devices and data to Howden. The contract is for a term of three years and has no guaranteed and/or minimum value. "
https://uk.advfn.com/stock-market/london/trakm8-TRAK/share-news/Trakm8-Holdings-PLC-Contract-Award/90608768
Not sure I agree with low number of staff - think they have been bloated for far too long. I checked a job ad for Quartix and they employ 140 (so seems about ball park to me - reckon QTX fleet stuff is more demanding than insurance black box stuff). My gut feeling is they needed the staff cut/strategy change as a means to attract new investment (by not being so bloated).
Related to this, the debt remains a major concern for me - especially with the interest rate increases - although, the growth loan should be nearly paid off and a fair chunk on the term loan as well.
Trakm8 is so frustrating. What was the point of the CMD if not to promote the company....the implication is they would announce these renewals (given they made a point of highlighting them in the guidance). I am hoping that the CMD is a show of confidence.