26th Sep 2019 13:37
(Alliance News) - Trakm8 Holdings PLC ahead of its annual general meeting on Thursday said its outlook is for a year of "improved financial performance", in line with market expectations.
Trakm8 provides fleet tracking services and dashboard camera systems.
Half-year revenue is expected to be "modestly lower" year-on-year, but with direct and indirect costs "significantly" lower, resulting in a narrowed adjusted loss.
"Overall, connections are largely unchanged since year end with a modest increase in Fleet connections and a modest reduction in Insurance connections," the company said.
Assuming that it receives a research & development tax claim in "the next few days", net debt excluding leases at the end of the half year should be in a range of GBP5.6 million to GBP5.8 million.
The company said this would be a "very significant improvement" on the cash outflow of the corresponding period a year ago.
"Even if the R&D tax reclaim is not received until October, the cash outflow will be significantly reduced on the corresponding period of the previous year," the company said.
The second half of the financial year should benefit from the commencement of shipments to new volume insurance customers and the resumption of shipments to automotive customers, along with an improved sales performance in the Fleet market.
Costs are expected to continue to reduce, delivering incremental savings "over and above" the GBP2 million communicated last financial year.
Shares were down 1.5% at 19.20 pence in London on Thursday.
By Lucy Heming; [email protected]
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