10th Apr 2014 09:41
LONDON (Alliance News) - TrakM8 Holdings PLC Thursday said pretax profit in its last financial year, excluding costs related to the acquisition of BOX Telematics Ltd, will be above its previous expectations after new projects boosted the margin in its engineering services business in the final quarter of the year.
The telematics hardware and software company said the new projects that buoyed its final fiscal quarter will predominantly be delivered in the current financial year.
The company's financial year runs to March 31. It expects to put out its full results for fiscal 2014 in early July.
Orders, excluding the BOX business, were up 46% compared with the previous year, while like-for-like revenue was up 13%.
Total revenue, including BOX, was below expectations because the BOX acquisition was delayed by a month, and the it had to reorganise and invest in BOX to prepare it for a telematics contract with a UK insurance company.
TrakM8 had net cash of GBP600,000 at the year end, which it said was ahead of its expectations.
"Having fully integrated BOX Telematics, we are now positioned to drive growth faster and to consider further acquisitions which will strengthen our leading position in the telematics market," Chairman John Watkins said in a statement.
"The outlook for the current financial year is more positive than at any time in recent years. Recent contract wins along with the continuous drive to secure more installed devices reporting to our servers means the group expects to achieve an improved trading performance in the new financial year, in line with existing management expectations," the company added.
Telematics is the combination of computing and wireless telecommunications to handle the long-distance transmission of information.
Shares in TrakM8 were trading up 8% at 61.00 pence Thursday morning, one of the biggest gains on AIM.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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