Trakm8 Holdings PLC AGM Statement & Trading Update (7532N)

TIDMTRAK

RNS Number : 7532N

Trakm8 Holdings PLC

26 September 2019

26 September 2019

Trakm8 Holdings plc

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

AGM Statement & Trading Update

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, is today holding its Annual General Meeting. Executive Chairman John Watkins will make the following statement on current trading at the meeting.

"The Board is pleased to report that the outlook is for a year of improved financial performance in line with market expectations.

Half Year revenues are expected to be modestly ahead of last year, direct and indirect costs significantly lower. The Half Year adjusted loss therefore should be considerably lower than last year. This is despite only one of our four significant new insurance customers starting to deploy devices during the period. Overall, connections are largely unchanged since year end with a modest increase in Fleet connections and a modest reduction in Insurance connections. Last year we received almost GBP1m of R&D Tax Claim refund in August. Assuming that we receive this year's claim in the next few days we expect that Net debt excluding leases at the end of the Half Year will be in the range GBP5.6m to GBP5.8m (31.3.19: GBP5.6m), which is a very significant improvement on the cash outflow of the corresponding period of the previous year. Even if the R&D tax reclaim is not received until October, the cash outflow will be significantly reduced on the corresponding period of the previous year.

The second half of the year will benefit from commencement of shipments to our new volume insurance customers, resumption of shipments to our automotive customers along with the improved sales performance in the Fleet market. Direct and indirect costs are expected to continue to reduce, delivering incremental savings over and above the GBP2m communicated last financial year.

The Group will report its half year results in early December."

- Ends -

For further information:

 
Trakm8 Holdings plc 
John Watkins, Executive Chairman       Tel: [phone] 
Jon Furber, Finance Director                      www.trakm8.com 
 
Arden Partners plc (Nominated Adviser  Tel: [phone] 
 & Broker) 
Paul Shackleton                           www.arden-partners.com 
 

About Trakm8

Trakm8 is a UK based technology leader in fleet management, insurance telematics, connected car, and optimisation. Through IP owned technology, the Group analyses data collected by 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 and reporting portal (Trakm8 Insight), integrated telematics/cameras, self-installed telematics units and one of the widest ranges of installed telematics devices. Trakm8 has over 240,000 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, Direct Line Group and Young Marmalade.

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005.

www.trakm8.com / @Trakm8

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September 26, 2019 02:29 ET (06:29 GMT)