19th Jun 2019 10:31
(Alliance News) - Shares rose in Quartix Holdings PLC on Wednesday after it said it expects to see a slight drop in earnings for the first half of its financial year, on higher investment in sales and marketing activity.
However, the company thinks its performance for all of 2019 will largely meet market expectations, with a revenue outperformance.
Shares in the vehicle tracking systems supplier were 9.9% higher at 280.22 pence on Wednesday.
For the six months to the end of June, Quartix said it expects to report adjusted earnings before interest, taxes, amortisation and deprecation of GBP3.5 million, down from GBP4.1 million the year before.
Revenue for the first half has been guided to dip to GBP12.6 million from GBP12.9 million.
As a result, for 2019 Quartix expects adjusted Ebitda to meet market consensus, which stands at GBP6.7 million.
Revenue for the year is expected to be at least GBP25 million, beating consensus expectations of GBP24.1 million.
In Quartix's Fleet division, revenue for the first half is expected to grow to over GBP10 million from GBP9.1 million a year before, with a 45% rise in new installations and the fleet subscription base expected to rise by 21% to 137,000 vehicles.
For Insurance, revenue is set to decline as Quartix reduces its involvement in lower-margin insurance tracking operations, to focus on fleet telematics.
"We are delighted with the expansion of our fleet subscription base in the first half. We significantly increased investment in customer acquisition and achieved a substantial improvement in growth, and are now confident of at least meeting expectations for revenue, profit and cashflow for the year," said Chief Executive Officer Andy Walters.
Quartix will publish its interim results on July 24.
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