13th Jan 2020 09:53
(Alliance News) - Quartix Holdings PLC said on Monday it expects annual earnings to be slightly ahead of market forecasts.
The company - which provides vehicle tracking systems to the fleet and insurance sectors - expects to report revenue of GBP25.6 million for 2019, with adjusted earnings before interest, tax, depreciation and amortization at GBP7.0 million. In 2018, Quartix recorded revenue of GBP25.7 million with adjusted Ebitda of GBP8.3 million.
Market expectations for 2019 were revenue of GBP25.3 million with Ebitda of GBP6.8 million, according to Quartix.
The company said saw growth in its core fleet business. However, its transition away from lower-margin insurance business caused new installations in the sector to decline by 12% to 36,386. The financial impact of this is expected to continue in 2020.
Quartix reported success in Spain, Germany, Poland and Italy in relation to its investment in software and telematics technology. It expects to invest more into sales, marketing and technological development of these in order to "capitalise further on the profitable subscription platform it has created".
"We are delighted with the progress made in 2019. Growth in all markets was excellent and the company's fleet subscription base grew by 22% to 151,000 vehicles. We also completed some exciting new technological developments during the year and will continue to invest in the growth of our fleet subscription business. We look forward to 2020 with confidence," said Chief Executive Andy Walters.
Quartix shares were trading 3.3% up at 376.00 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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