Trakm8 Share Discussion Threads

[apad] 28/11/2016 08:48

This is indeed the core of the issue, Woody, and TRAK's balance sheet has been sacrificed to promise.
However, the field is intensively competitive and TRAK has fallen off the back of the wave. I don't think there is a way back.
apad

[woodcutter] 28/11/2016 08:31

I sold most of my holding a while ago at a small loss but kept a rump holding just in case it took off.fwiw my view is the problems for TRAK emminate around Watkins, he's been too focused on the technology and not anything like focused enough on sales.

He's now got that message and looks to have over reacted in increasing the overheads. The business model is primarily dependant up trying to save other businesses costs yet they seem to me to be over complicating the product and adding superflous cost in to it. It seems over engineered.

The more you add the more it costs and the clients have to pay more thereby reducing their savings, there's a point where all the extras are no longer value for money.

I think there's a sound business here with decent propects but i don't think Watkins is the man to lead it.

woody

[le4r] 28/11/2016 08:18

Well done Salpara. I had the same thought running up to results but gave the management the benefit of the doubt based on prior TR, so hung on in there ....

Thankfully managed to exit one of my positions first thing at 155 with only a very small loss. The other account had a much higher buy-in price and now sits on a huge loss, but I couldn't exit as broker was quoting me 116p (for NMS) when the spread was 140-145!! wtf!

Anyhow, I think you may be right about the prospects here, at least for the foreseeable future, and we may see further declines as iis look to exit positions over the coming days/weeks, but I feel that at 120ish it's more likely to recover (a little) ground short-term, than loose more. I'll be watching the price keenly over the coming days.

Best luck to all holders / now non-holders alike

[40toolong] 28/11/2016 08:12

Time for a trade sale

[salpara111] 28/11/2016 08:09

So relieved to have taken my loss last week rather than a much bigger one today.
I cant see what is going to stop this from dropping back below 100.
The big guys who supported the rights issue must be rather irritated.
As someone who works in the auto industry I do see a great future for the telematics industry but I'm not sure that Trak are going to be one of the winners given this performance.

[sheep_herder] 28/11/2016 08:09

DavR0s, exactly. This will be a stinker for another two years now. No matter how good the future prospects, the share price will not recover until management can show they can generate some profit.

[davr0s] 28/11/2016 08:05

Yeah like all those good buying opportunities since 300. Glad I sold at 230 now. Growth currently gone and it was priced on high growth

[nickg2] 28/11/2016 08:00

Good buying opportunity here me thinks..

[40toolong] 28/11/2016 07:52

Telematics is not going anywhere.
Quite the opposite, growth is coming to this sector and these guys will be best places to deal with it.

[michaelmouse] 28/11/2016 07:51

Nice contract announced as well with 6,000 devices to be delivered this year and substantially more in the next 18 months.

[paleje] 28/11/2016 07:50

Commitment to in line FY has weakened significantly, very dependent on.

[michaelmouse] 28/11/2016 07:48

Results are fine for long term holders. Revenues are up, they've invested heavily in their resources and therefore total admin expenses are up nearly £2m in the half-year which clearly impacts the bottom line massively.

Outlook statement is positive. Revenues will be up significantly with profits in-line with current market expectations or around similar levels to last year depending on the timing of projects.

The main thing is that they are investing to seize the enormous opportunity whilst remaining cashflow positive and profitable. They are also going to continue paying a dividend :).

In short, this year is one of investment for growth in future years and the additional investment in sales and marketing is and will bring substantial new business in future years.

[sheep_herder] 28/11/2016 07:13

See you all at 100p.

[cowlid] 28/11/2016 07:05

Oh dear.........

[blondeamon] 27/11/2016 21:46

15.7p EPS for full year expected.

IMO profit will be 0.9m£ compared to 1.458m£ last year.

[sheep_herder] 27/11/2016 21:13

What's the broker target for half year eps?

Wouldn't be surprised to see this being marked down in the morning no matter what happens. Hopefully the forward looking statements are really good.

[40toolong] 27/11/2016 20:46

Good luck everyone

[prettygreen] 27/11/2016 20:30

Fingers crossed !

[blondeamon] 27/11/2016 20:13

I've filtered dlku ages ago 40TL, he is a serial deramper. Nothing useful to say, just pops up every few weeks.

On the H2 profits part and whether they will achieve it: I am a bit sceptical. To do that they'll have to make 100% more profits in H2 than they did last year, if not more if the USD/GBP doesn't recover soon.

I think at the end it will be more of a meet-in-the-middle situation where Trakm8 will still post very good profits but not what was expected, strictly because of Brexit. Unless some big news come soon like a material contract or some favourable regulatory change etc I don't think it's easy to double profits so fast.

We'll know more tomorrow.

[40toolong] 27/11/2016 19:32

Results are tomorrow and we have already been advised that first 6 months are down on last year but the year overall remains unchanged. Further commitment that the year is achievable will send this back to 400p over the next 4 months imo.

[dlku] 27/11/2016 19:13

anyone expecting a profit warning on tuesday?

[blondeamon] 27/11/2016 16:49

For me it's obvious that the best way forward is through white labelling, with all these new partners we have that have established clients for years and can persuade them to try telematics. We can't chase all the big clients ourselves, we're too small but the likes of AA, BT Fleet, Fleetel etc all have established partnerships. Churn rate here less than 9% so book client once and get subscriptions forever.

Insurance is smaller margins but much easier to book and churn rate I suspect around 40-50% as young people drop these when they reach 21. But if telematics catch up for the age group of 30s-40s then our clientèle can potentially triple, but not happening in 2017. The more IPT rises the more telematics make more sense long term.

A third area, more for future potential is EVs where RM is ahead of the game and involved in multiple government projects and gets research grants and considered one of the leaders in route optimisation.

Apparently RM/TRAK has secured some US contracts and tomorrow is the first chance for us to hear about it. Looking forward to it.

GLA

[michaelmouse] 27/11/2016 14:08

paleje - Every time I read one of these reports, I say to myself that "the die has been cast" i.e. eventually every driver will have a black box and camera to keep their premiums down.

[paleje] 27/11/2016 10:10

Would've been nice if they'd added black boxes to their advisory tips at the end.



Car insurance premiums to rise to £600 after tax hike
AA warns of soaring costs from June following autumn statement announcement

Car insurance premiums are set to break through the £600 barrier for the first time next year as insurers pass on higher costs and this week’s premium tax hike, experts are warning. On Wednesday the chancellor, Philip Hammond, announced he is to increase insurance premium tax (IPT) from 10% to 12% from June.

This means drivers, now typically paying around £50 a year to the Treasury when they insure their car, will see it rise to above £60. Some young drivers could have to pay more than £250 just in the IPT part of their premium, according to comparison site GoCompare.

IPT, levied on around 50m insurance policies (including car, home and medical), has gone up nearly five times since it was introduced in 1994 at a rate of 2.5%. The AA says the extra tax will add further pressure on drivers already battling steep increases in underlying premiums. Its benchmark British Insurance Premium index shows a 16.3% rise over the past 12 months with the average “shop around” premium at £586.


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“It’s disappointing the chancellor seems to have used the potential £40 saving on the average premium due to the whiplash crackdown, to increase IPT,” says the AA. “The upward pressure on premiums continues, which coupled with the unwarranted hike in IPT will see premiums go through the £600 mark before any benefit from the whiplash crackdown takes effect.”

Matt Oliver, car insurance spokesperson at GoCompare, says there are still “genuine inflationary forces in the market”. “That means it is unlikely we will see any real flattening for motor premiums in the next few months.

“Until firm action is delivered on whiplash and the compensation culture, claims costs will continue to rise. Any signs that the rate had slowed earlier this year are likely to be completely undermined by the announcement of a further increase in IPT.”

What can you do to keep premiums down? Guardian Money advises:

• Shopping around at renewal is key, but do so in advance. Buyers get significantly lower quotes (£100 less) if they buy 30 days in advance, rather than the day before cover is required.

• Don’t overbuy cover – if you only drive 5,000 miles a year, don’t insure for 10,000. And if you can park off-road, do so and tell your insurer.

• Consider adding a spouse or parent as a named driver – it could reduce the premium by hundreds of pounds.

• Don’t soup up your car with sports exhausts, spoilers etc – but do fit a tow bar. Bizarrely, adding one can lower your premium by as much as 20%. Who knew?