t42 IoT Tracking Solutions PLC (AIM:TRAC), a tech firm that tracks shipping containers, was on the back foot in Wednesday’s early deals on the back of full-year results that seemed to prompt a bout of profit-taking.
In London, the AIM-quoted share was down 5.2% changing hands at 5.45p – having traded as low as 5p in earlier deals, still up around 100% since the start of the year after announcing a succession of agreements in April and May.
The results showed a 1% decline in revenue to $4.01 million for 2023 calendar year, though gross margin improved to 53% from 42% in the prior year. Earnings (adjusted EBITDA) was reported at $341,000 for the year versus a loss last time of $812,000.
The company, in the statement, highlight recent long-term business wins with four major commercial agreements secured in the current financial year – representing potential orders totalling 100,000 units, worth around $20 million over three years.
It also highlighted that DHL’s Israel operation had placed its first commercial order for the company’s Lokies product, following a period of testing and evaluation.
T42 chair Michael Rosenberg commented: “It is pleasing to have concluded four long-term agreements this year to date concluded as we continue to collaborate with market leaders to promote t42's strategy in accessing mass markets.
“We are confident that our cutting-edge technology will be translated into further contracts in in the short- to mid-term.
Rosenberg added: “As our strategic decision to focus on the shipping container market evolves, we believe that the technological advantages of our Helios solution will allow us to secure further development projects and opportunities.”
Chief executive Avi Hartmann, meanwhile, said: “Our solution guarantees security, and economic feasibility while significantly reducing implementation time and accelerating return on investment for our customers.
“We are actively pursuing business opportunities in key markets such as South America and North America, evident from recent agreements signed and the substantial business potential they represent."