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Hardware & electrical equipment

Trakm8 motors ahead as profits top hopes

Vehicle tracking group nearly doubles annual revenue.

Vehicle monitoring technology group Trakm8 (LON:TRAK) posted better-than-expected annual profits and said it was on track to top next year's forecasts.

The group, which makes devices that track vehicle and driver performance for insurers and others, said adjusted pre-tax profit in the year to March 31 was £1.8mln against £1.24mln a year ago.

Like-for-like orders rose 38% and revenue increased 95% to £17.9mln.

The group won major contracts with Marmalade and French glass-maker Saint Gobain during the year.

It said it had an encouraging line-up of potential orders and sales opportunities.

It also successfully merged its Box Telematics acquisition into the company and said it was consolidating Box telematics with Trakm8's.

Year to date revenues were ahead of last year and management now expected to modestly exceed previous market expectations for 2015/16, it said.

Executive chairman John Watkins said: "Overall, the first three months of trading are ahead of last year."

Shares fell 1.5p to 174p around midday in London.

Finncap pointed out that the better-than-expected performance was partly due to a full year of contributions from Box telematics, which Trakm8 bought in October 2013.

But the broker added: "The underlying organic growth is still impressive."

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