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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Trakm8 Holdings Plc | LSE:TRAK | London | Ordinary Share | GB00B0P1RP10 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 9.25 | 8.50 | 10.00 | 9.25 | 9.25 | 9.25 | 0.00 | 07:35:46 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Transportation Equipment,nec | 20.2M | -783k | -0.0157 | -5.89 | 4.62M |
From May 2019 to May 2024
TIDMTRAK
RNS Number : 0409R
Trakm8 Holdings PLC
14 November 2012
14 November 2012
TRAKM8 HOLDINGS PLC
("Trakm8" or "the Group")
Interim Results
Trakm8 (AIM: TRAK), the designer and developer of GPRS based hardware and software for the vehicle placement and security market, is pleased to announce its unaudited results for the six months ended 30 September 2012:
Highlights
Hot Features
Premium
Six months Six months Year to
to 30 September to 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 2,322 2,517 5,216
Gross Profit 1,737 1,635 3,326
Gross Profit % 74.8% 65.0% 63.7%
Earnings before interest,
tax, depreciation &
amortisation 228 151 359
Profit before tax 74 18 84
Diluted earnings per
share (pence) 0.39 0.10 0.70
Net cash and cash equivalents 1,133 443 1,087
Net assets 2,431 2,262 2,380
-- Underlying annualised recurring revenues increased by 15% to GBP2.01m
(2011: GBP1.74m)
-- Gross Profit % increased by 9.8% to 74.8% (2011: 65.0%) -- Strong cash balance provides confidence to invest in growth opportunities: - Major investment in sales and engineering teams -- eco(N) fuel saver product launched with good initial sales pipeline
John Watkins, Chief Executive of Trakm8 said:
"Trakm8 has continued to consolidate its trading position and profitability and has also enhanced its robust financial position. We are pleased to announce a major investment in new personnel to strengthen our sales and engineering teams and we are confident this will lead in the medium term to an acceleration in the growth of the Group".
For further information, please visit www.trakm8.com or contact:
Trakm8 plc John Watkins, Chief Executive Officer James Hedges, Finance Director 01747 858444 MHP Communications Reg Hoare / Vicky Watkins 020 3128 8100 finnCap (Nominated Adviser and Broker) Ed Frisby / Christopher Raggett - corporate finance Simon Starr - corporate broking 020 7220 0500
Chairman's Statement
I am pleased to report Trakm8's results for the six months ended 30 September 2012.
Revenues fell slightly in the period to GBP2,322K (2011: GBP2,517K). This reflects the tough economic climate which has impacted some of our customers and makes the quantum and timing of contract awards difficult to predict. However despite this the strength of the Trakm8 business model has resulted in increases in gross profit, profit before tax and cash balances.
There has been a strong increase of 15% in the annualised recurring revenues which are based on increased numbers of units reporting to Trakm8 Swift; these revenues are the bedrock of the company's financial future. In addition there has been an increase in the amount of Engineering Services work we have undertaken. This is the work that integrates our products into customers' own IT infrastructure and further enhances the benefits of a complete telematics solution.
I am pleased to report that Trakm8 has continued to develop new market leading products and has recently launched the eco(N) Fuel Saver solution to assist businesses in improving driver behaviours. In addition we have continued to roll out further improvements to our core Trakm8 Swift solution.
Outlook
The Board has reviewed the strategy for the Group in recent months. The business has established a strong financial model and has built up considerable cash resources. This has given us the confidence to embark on a more rapid expansion of our sales, marketing and engineering activities to take advantage of growth opportunities, although it will increase our cost base in the short term as we make the necessary investment. In the medium term, this is expected to drive growth at a faster rate than previously anticipated and we are therefore confident about future prospects for the Group.
DAWSON BUCK
CHAIRMAN
CEO's Report
Product sales
The most significant event of the period was the supply of 2,300 units to a police force in South America. However sales to other integrators were disappointing and reflect the general uncertainty in many markets and countries. It is a fact that these sales are often very unpredictable, with long lead times, and can have a substantial impact from one month to the next.
We have many T8 Mini units on trial around the world. The response to the product has been very positive which has been encouraging. Generally the pipeline of opportunities is stronger than six months ago and reflects the success of our recent appointment of an International Business Development Manager.
Solution Sales
During the period Trakm8 was pleased to launch our eco(N) Fuel Saver product and a major update to Trakm8 Swift. Our customer facing web based solutions are now market leading. In addition the quality of the data and the informative way it is delivered gives customers the management tools to drive costs down significantly. The eco(N) product is on trial at a large number of customers and so although new sales in the period have been less than last year, the pipeline built is now stronger.
In addition we have finalised the production of our logistics planning software package which provides customers with significant benefits for the scheduling of orders at a reasonable cost.
Solution sales continue to increase the numbers of units reporting to our servers. The annualised recurring revenues derived from our installed base therefore grew considerably in the period to GBP2,014K (2011: GBP1,745K).
Engineering Services
The highlight of the period was a contract win to develop a bespoke version of the eco(N) product for a new customer. This project is anticipated to be completed in the first quarter of 2013 and is expected to generate considerable increases in the number of units reporting to Trakm8 Swift.
A number of smaller engineering projects were also completed during the period and these too should deliver ongoing increases in our recurring revenues.
Strategy
As the Chairman has reported the Board conducted over recent months a review of the Group's current strategy and has decided to embark on a period of significant expansion.
The past few years have seen a major transition for the business; we have built a strong core of customers whilst growing service recurring revenues, based on a market leading portfolio of telematics products and solutions. This in turn has led to a turnaround in financial performance, with strong profitability following a period of trading losses, and a strong balance sheet with substantial cash resources available.
This fundamental improvement in the Group's position has provided the Board with the confidence and scope to consider a range of strategic options. At the same time the tough economic climate means that our strong financial position and business model gives us a competitive advantage compared to weaker competitors. Our analysis of the market confirms that it is a long term growth market, as our customers continue to focus on fuel economy, insurance costs and the impact of increasing government regulation.
We have looked at a number of possible acquisitions in order to expand the Group's portfolio of products and revenues but we have yet to find a suitable company which will add value. We will continue to respond to opportunities as they arise but eliminate anything that does not have a good strategic fit at a realistic economic price.
The Board believes that the time is right to build on this strong base more aggressively and to accelerate Trakm8's growth rate. So the Group is in the process of hiring a total of 15 new employees in addition to new recruits already planned for 2012/13. This investment is designed to strengthen our sales and marketing resources and our customer support functions. We also intend to establish a new team in our Prague office to address telematics opportunities in the Eastern part of Europe. Furthermore we will augment our engineering functions to expand both the products and solutions we offer and to grow the team undertaking customer bespoke developments. We will ensure that this growth in activity is matched by expansion of our support teams.
Outlook
This strategic investment is likely to impact the Group's profits in the short term, as in total this growth in staff numbers will increase our overheads by in excess of GBP400K per annum, with some initial impact in the second half of the current financial year. The benefits of this investment are expected to be realised in the medium term.
Notwithstanding the tough economic climate, we expect to have greater visibility by the New Year in respect of converting our strong pipeline of contract opportunities.
The Board is confident that the timing of the investment is opportune both in terms of the general economic climate and to drive forward our future growth in revenues and profits thereby improving shareholder value.
JOHN WATKINS
CEO
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months to 30 September 2012
Six months Six months Year to
to 30 September to 30 September 31 March
Note 2012 2011 2012
Unaudited Unaudited Audited
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 2,322 2,517 5,216
Cost of sales (585) (882) (1,890)
Gross profit 1,737 1,635 3,326
Other income - - 5
Administrative
expenses (1,662) (1,615) (3,243)
Profit from operations 75 20 88
Finance income 1 - 1
Finance costs (2) (2) (5)
Profit before taxation 74 18 84
Income tax - - 51
Profit attributable to
the owners of the parent 74 18 135
Other Comprehensive
Income
Currency translation
differences - - 1
Total Comprehensive Income
for the period attributable
to owners of the parent 74 18 136
================= ================= ==========
Basic earnings per
share (pence) 4 0.39 0.10 0.71
Diluted earnings
per share (pence) 4 0.39 0.10 0.70
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months to 30 September 2012
Share Share Merger Translation Retained Total
Capital premium Reserve reserve earnings equity
attributable
to owners
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 April 2011 188 1,719 510 206 (387) 2,236
--------- --------- --------- ------------ ---------- --------------
Comprehensive
income
Profit for the
period - - - - 18 18
Total comprehensive
income - - - - 18 18
Transactions
with owners
Exercise of
share options 1 4 - - - 5
IFRS2 Share
based payments - - - - 3 3
Transactions
with owners 1 4 - - 3 8
--------- --------- --------- ------------ ---------- --------------
Balance as at
30 Sept 2011 189 1,723 510 206 (366) 2,262
--------- --------- --------- ------------ ---------- --------------
Comprehensive
income
Profit for the
period - - - - 117 117
Other comprehensive
income
Exchange differences
on
translation
of overseas
operations - - - (1) - (1)
Total comprehensive
income - - - (1) 117 116
Transactions
with owners
Transfer share - - - - -
based payment
reserve to Retained
earnings
IFRS2 Share
based payments - - - - 2 2
--------- --------- --------- ------------ ---------- --------------
Transactions
with owners - - - - 2 2
--------- --------- --------- ------------ ---------- --------------
Balance as at
31 March 2012 189 1,723 510 205 (247) 2,380
--------- --------- --------- ------------ ---------- --------------
Comprehensive
income
Profit for the
period - - - - 74 74
--------- --------- --------- ------------ ---------- --------------
Total comprehensive
income - - - - 74 74
--------- --------- --------- ------------ ---------- --------------
Transactions
with owners
Purchase of
own shares - - - - (58) (58)
Exercise of
share options 5 28 - - - 33
IFRS2 Share
based payments - - - - 2 2
--------- --------- --------- ------------ ---------- --------------
Transactions
with owners 5 28 - - (56) (23)
--------- --------- --------- ------------ ---------- --------------
Balance as at
30 Sept 2012 194 1,751 510 205 (229) 2,431
--------- --------- --------- ------------ ---------- --------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 September 2012
30 September 30 September 31 March
2012 2011 2012 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 878 1,081 1,005
Plant, property and equipment 496 457 517
Deferred income tax asset 99 63 99
-------------- -------------- ---------------
1,473 1,601 1,621
-------------- -------------- ---------------
Current assets
Inventories 566 478 410
Trade and other receivables 648 1,318 782
Current tax - - 15
Cash and cash equivalents 1,133 443 1,088
2,347 2,239 2,295
-------------- -------------- ---------------
Current liabilities
Trade and other payables (1,135) (1,338) (1,251)
Borrowings (48) (21) (56)
(1,183) (1,359) (1,307)
-------------- -------------- ---------------
Current assets less current
liabilities 1,164 880 988
-------------- -------------- ---------------
Total assets less current
liabilities 2,637 2,481 2,609
-------------- -------------- ---------------
Non-current liabilities
Borrowings (140) (149) (163)
Provisions (66) (70) (66)
(206) (219) (229)
-------------- -------------- ---------------
Net assets 2,431 2,262 2,380
============== ============== ===============
Equity
Note
Called up share capital 4 194 189 188
Share premium 1,751 1,723 1,724
Merger reserve 510 510 510
Translation Reserve 205 206 205
Retained loss (229) (366) (247)
------ ------ ------
Total equity attributable
to owners of the parent 2,431 2,262 2,380
====== ====== ======
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 September 2012
Six months Six months Year to
to to 31 March
30 September 30 September 2012
2012 2011 Audited
Unaudited Unaudited
Note GBP'000 GBP'000 GBP'000
Net cash inflow
/ (outflow) from
operating activities 5 109 (614) 111
-------------- -------------- ----------
Cash flows from investing
activities
Purchase of intangible
assets (2) (42) (90)
Purchases of property,
plant and equipment (5) (11) (91)
Net cash used in
investing activities (7) (53) (181)
-------------- -------------- ----------
Cash flows from financing
activities
Proceeds from exercise
of share options 33 5 5
Repayment of obligations
under hire purchase
contracts (21) (4) 53
Repayment of loans (10) (10) (20)
Purchase of own (58) - -
shares
-------------- -------------- ----------
Net cash used in
financing activities (56) (9) 38
-------------- -------------- ----------
Net increase / (decrease)
in cash and cash equivalents 46 (676) (32)
Cash and cash equivalents
at beginning of period 1,087 1,119 1,119
-------------- -------------- ----------
Cash and cash equivalents
at end of period 1,133 443 1,087
============== ============== ==========
Notes to the financial information (unaudited)
1. The financial information contained in this interim statement has not been audited or reviewed by the Group's auditor and does not constitute statutory accounts as defined Section 434 of the Companies Act 2006. The Directors approved and authorised this interim statement on 14 November 2012. The financial information for the preceding full year is extracted from the statutory accounts for the financial year ended 31 March 2012. Those accounts, upon which the auditor issued an unqualified opinion and did not include a statement under Section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies.
2. Trakm8 Holdings PLC is a public limited company incorporated in the United Kingdom under the Companies Act 2006. Trakm8 is domiciled in the United Kingdom and its ordinary shares are traded on AIM, the market operated by the London Stock Exchange plc.
3. As permitted this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore is not fully in compliance with IFRS. The Interim results have been prepared in a manner consistent with the accounting policies set out in the statutory accounts for the financial year ending 31 March 2012.
4. Profit per ordinary share attributable to the owners of the parent
Six months Six months Year to
to to 31 March
30 September 30 September 2012
2012 2011 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Profit attributable
to the owners of
the parent 74 18 84
-------------- -------------- ----------
Weighted average number of ordinary shares in issue
Six months Six months Year to
to to 31 March
30 September 30 September 2012
2012 2011 Audited
Unaudited Unaudited
No. No. No.
'000 '000 '000
Basic 18,999 18,777 18,821
Diluted 19,064 19,225 19,159
On 25 September 2012 Trakm8 Holdings PLC purchased 370,000 of its own ordinary shares at a price of 15.5 pence each. These shares are being held in treasury and have been excluded from the weighted average number of shares used for calculating basic and diluted earnings per share.
5. Reconciliation of cash flows from operating activities:
Six months Six months Year to
to to 31 March
30 September 30 September 2012
2012 2011 Audited
Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Net profit before taxation 74 18 84
Adjustments for:
Depreciation 25 17 37
Bank and other interest
charges 1 2 4
Amortisation of intangible
assets 130 113 235
Share based payment expense 2 3 5
Operating cashflows before
movement in working capital 232 153 365
Retranslation of overseas
operations - - (1)
Movement in inventories (156) (219) (151)
Movement in trade and
other receivables 135 (424) 110
Movement in trade and
other payables (116) (139) (226)
Cash generated from /
(used in) operations 95 (629) 97
Interest paid (2) (3) (5)
Interest received 1 - 1
Income taxes received 15 18 18
Net cash generated from
/ (used in) operating
activities 109 (614) 111
============== ============== ==========
6. Copies of the report are available at the Group's website www.trakm8.com and also from the registered office of Trakm8 Holdings PLC. The address of the registered office is: Lydden House, Wincombe Business Park, Shaftesbury, Dorset, SP7 9QJ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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