Trakm8 Hldgs Regulatory News (TRAK)

26 April 2022

Trakm8 Holdings plc

("Trakm8", the "Group" or the "Company")

Trading Update

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, today announces a trading update for its financial year ended 31 March 2022.

Revenues for the full year ended 31 March 2022 were £18.2m, which is 14% more than the prior financial year. Revenues from Fleet customers amounted to £11.3m, 19% more than last year. In a year that started in lockdown and when driving tests and availability of second hand cars were negatively impacted by Covid-19, revenues from Insurance customers amounted to £6.9m, 7% more than last year as a result of a strong fourth quarter for new policy sales and new customer launches.

The Group expects to achieve an adjusted profit before tax for the financial year in line with previous guidance of circa £7k (FY-2021: Adjusted loss of £0.3m) and a profit after tax of £0.2m (FY-2021: Loss after tax of £1.2m)

Cash generation from operating activities at £3.6m, has been as expected and at 31 March 2022 the Group net debt was £5.4m (£7.0m after IFRS 16 changes), which is £0.5m higher than as at 31 March 2021 and a £0.8m reduction since 30 Sept 2021. At the year end, the Group had £1.0m of cash on hand and a further £0.5m of available funds under an overdraft facility. During the financial year, the Group reduced the long term liability to HMRC by £0.9m to £0.9m in line with an agreement reached last year.

During the year, connections increased by 4% to 264,000 (FY-2021: 254,000). Fleet connections increased by 1% to 71,000 (FY-2021: 70,000), Insurance & Automotive connections increased by 5% to 193,000 (FY-2021: 184,000). The resulting recurring revenues in the year increased by 5% to £9.8m, representing 54% of Group revenues.

Software revenues increased by 149% to £1.3m, representing 7% of Group revenues.

The Group has had to deal with a number of significant supply chain challenges but, with the benefit of our fully integrated business model, has successfully avoided any meaningful interruptions to customer deliveries during the period. There has however been an impact on the Group's costs and we estimate this amounted to £0.2m during the financial year.

We were pleased to advise during the year that several major contract awards, extensions and renewals were secured.

Further new products and solutions were introduced to the market that will continue to improve the costs and functionality of the solutions we sell.

Outlook

A major challenge for Trakm8 post Covid-19 and now the war in Ukraine will be the security of component supply where it faces challenges weekly of varying significance. However, the Group continues to take steps to minimise these risks.

There are a number of Fleet deployment contract renewals during 2022 which are important to the outcome for the year and the timing of which will lead to Group revenue being second half weighted. Growth in Insurance policy sales will be dependent on the level of activity from the new customers which have been announced, alongside a return to more normal sales at existing customers.

Like many businesses, Trakm8 is currently experiencing significant salary and component inflationary pressures. Whilst it is unlikely that the Group will be able to mitigate all of these cost increases, it is taking what steps it can to achieve this.

The Board looks forward to providing an update on Trakm8's trading performance in the current financial year at the time of publication of the Group's results for the year ended 31 March 2022. 

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About Trakm8

Trakm8 is a UK based technology leader in fleet management, insurance telematics, connected car, and optimisation. Through IP owned technology, the Group uses AI data analytics collected from its installed base of telematics units to fine tune the algorithms that are used to produce its' solutions; these monitor driver behaviour, identify crash events and monitor vehicle health to provide actionable insights to continuously improve the security and operational efficiency of both company fleets and private drivers.

The Group's product portfolio includes the latest data analytics and reporting portal (Trakm8 Insight), integrated telematics/cameras/optimisation, self-installed telematics units and one of the widest ranges of installed telematics devices. Trakm8 has over 264,000 connections.

Headquartered in Coleshill near Birmingham alongside its manufacturing facility, the Group supplies to the Fleet, Optimisation, Insurance and Automotive sectors to many well-known customers in the UK and internationally including the AA, Saint Gobain, EON, Iceland Foods, GSF, Direct Line Group, Ticker and Ingenie.

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005. Trakm8 is also recognised with the LSE Green Economy Mark.

www.trakm8.com / @Trakm8