18th Jan 2017 09:17
LONDON (Alliance News) - Vehicle tracking systems developer Quartix Holdings PLC on Wednesday said its profit for 2016 will meet expectations, while revenue will come in slightly ahead, but the group said it saw a slowdown in the second half and its 2017 results will take a hit from increased investments.
Quartix said subscriptions in its core fleet operations rose 14% in 2016 in the UK to 71,000 vehicles and by 95% in its US business to 6,000 vehicles. Subscriptions in France rose 26% to 10,000.
New unit installations for the firm in the insurance sector grew 22% year-on-year in 2016 to 69,000 vehicles, Quartix said, though installations in the second half were down around 13%.
This was in line with Quartix's decision to focus on its core fleet market and only pursue new installations offering sustainable margins.
Quartix is continuing to manage its cost base to cope with the effect of this strategy and is also facing pricing pressure from insurance sector customers, it said.
However, the group will invest more in business development in 2017, with a view to growing its business in the US, and its 2017 results will therefore be broadly flat against 2016.
Shares in Quartix were down 8.3% to 275.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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