Trakm8 Hldgs Regulatory News (TRAK)

1 Aug 2007 11:59

Trakm8 Holdings PLC01 August 2007 1 August 2007 TRAKM8 HOLDINGS PLC ("Trakm8" or "the Group") Trakm8, a leading provider of on-line telematics services, solutions and relatedhardware, today announces an update to trading as a consequence of reaching asettlement agreement with an external supplier of a product component. On the 2nd April 2007 Trakm8 advised that a technical issue with one of Trakm8'sexternally sourced components had affected a limited number of hardware units.Trakm8 also advised that it had incurred costs and would be making necessaryprovisions for the rectification expenditure which would have a detrimentalimpact on the financial results for the year ending on 31 March 2007. Trakm8 is pleased to announce that a settlement agreement has now been signedwith the supplier in question and as a consequence, the financial lossesincurred as a result of this issue have been substantially reduced. Thesettlement agreement includes both immediate direct financial re-imbursement toTrakm8 and future reduced component cost. As a result, the Directors areconfident that the net adverse pre-tax financial impact will not exceed £13,000.This will be fully expensed in the year ending 31 March 2007. These costs willbe more than offset in the current financial year by the reduced component costreferred to above. - Ends - For further information please contact: Trakm8 plc 0870 380 0531Cary Knapton, Chief Executive OfficerTim Couling, Finance Director Tavistock Communications 020 7920 3150Simon Hudson Arbuthnot Securities 020 7012 2000Paul Vanstone About Trakm8Trakm8 is a leading provider of on-line telematics services, solutions andrelated hardware. The Company provides ASP vehicle monitoring and trackingservices direct to the B2B market. It also distributes its own hardware andsoftware products worldwide through a network of distributors. Trakm8's productsand services allow vehicle assets to be monitored; allowing organisations tomanage deliveries and services, or track stolen vehicles down to 5 metres. This information is provided by RNS The company news service from the London Stock Exchange