Quartix Holdings plc (LON:QTX), the supplier of vehicle tracking systems reported a stellar set of results for the half year ended June, with group revenues up 26% year-on-year and pre-tax profit up 23%.
Group revenues grew to £11.6mln, compared to £9.2mln last year, driven higher by a 47% boost to revenues coming in from its insurance services arm, as more and more drivers opt to install the black box-style tracking devices in their vehicles. Fleet revenues grew 16%.
“We remain on track to meet profit expectations for the year as a whole,” said managing director Andy Walters.
Pre-tax profit stood at £3.3mln, compared to £2.7mln last year, leaving the group with a cash balance of £4.1mln, up from net cash of £3.0mln in the same period last year.
Despite significantly increased expenditure on product development, the group said operating profit was up 22%.
The group now boasts a fleet of over 79,000 vehicles, which has grown 7% since last year, while its customer base increased was up 5% to 8,212.
Sales in the UK grew by 24%. Over in France revenues increased by 26%. Quartix continued to develop its operations in the US, with a subscription base of just over 4,000 vehicles, more than double last year.
“The group has made a good start to the second half, in line with management's expectations. The high levels of recurring revenues and opportunities to grow in the UK, France and the USA in fleet combined with more efficient management of the insurance business underpin our confidence for the rest of the year and beyond,” said chairman Paul Boughton.
The board has recommended an interim dividend of 2.2p (2015 2.0p) per share, amounting to just over £1mln in aggregate.
The share price currently stands at a 4 month high of around 355p.