26th Mar 2019 14:09
LONDON (Alliance News) - Quartix Holdings PLC on Tuesday expressed confidence for the rest of 2019 as it continues to see a strong performance in it Fleet Tracking division.
The stock was trading 8.2% higher on Tuesday at 265.00 pence a share.
At its annual general meeting, the vehicle tracking systems company said trading in the two-month period to the end of February was "very" encouraging and consistent with meeting market expectations for the year.
Quartix said consensus market expectations for 2019 are for revenue of GBP24.1 and adjusted earnings before interest, taxes, depreciation, and amortization of GBP6.7 million.
In 2018, the company reported revenue of GBP25.7 million and adjusted Ebitda of GBP8.3 million.
In the Fleet Tracking division in the UK, France and the US, the company said strong progress from the end of 2018 continued into 2019, with new installations for the first quarter expected to be at least 45% ahead of the same period in 2018, totalling 10,500 units.
The growth has been led by the UK, which is expected to be 55% ahead of 2018, at 6,500 new vehicle installations. The improvement in the UK was helped by an increased number of customers and the winning of larger customer accounts.
France and the US are expected to have increased by 45% and 22%, respectively, with both territories likely to achieve close to 2,000 new installations in the quarter, Quartix said.
Meanwhile, in new territories, the Fleet Tracking unit has an "attractive proposition" for its target market in Poland and Spain. The company reported new customers have been won in both countries and it is building pipelines.
Looking ahead, Quartix intends to increase sales and marketing investment in both new and existing fleet territories in order to drive Fleet Tracking division growth in line with market expectations.
The company said its Insurance Telematics division remains profitable, despite new installations for insurance clients declining, expected to be 8,300 units in the first quarter, which is 35% lower than in the same period of 2018.
"We are delighted with the progress made in our fleet business in the first quarter. Growth in new customer acquisition and new vehicle installations has accelerated and we have launched our telematics service in two new markets," said Chief Executive Andy Walters.
"We look forward to the rest of 2019 and beyond with confidence," added Walters.
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