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Trakm8 shares hit the skids as Brexit-related delays take a chunk out of revenues

In a trading update, the fleet management and dashcam systems firm said revenues for the year ending 31 March 2019 were expected to be 25% to 35% lower than last year
Money cut
Trakm8 had previously forecast reduced revenues of 20%-25% in its half-year results in November

Shares in Trakm8 Holdings PLC (LON:TRAK) skidded on Monday morning after the firm forecast a full year revenue cut of at least 25%, which it blamed on Brexit uncertainty delaying contracts.

In a trading update for the third quarter, the fleet management and dashcam systems firm said revenues for the year ending 31 March 2019 were expected to be 25% to 35% lower than last year, with a loss also reported despite a “profitable” second half.

READ: Trakm8 raises £3mln through share sale, inks partnership deal with Microlise

The company blamed “ongoing Brexit uncertainty” as the key source of its woes, with certain opportunities for orders in its fleet segment were suffering from delays.

Trakm8 had previously forecast reduced revenues of 20%-25% in its half-year results in November after customer delays and the loss of a multi-million-pound contract due to Iranian sanctions dented its earnings.

For the quarter itself, the company said it had seen a marked improvement in order volumes, which were 10% higher than the run rate of the first half, adding that it had also restarted shipments to a “major automotive customer”.

For the final quarter, the group expected an improvement in the growth of new orders and shipments, with the sales team in its fleet segment having “delivered a strong start” with several contract wins.

Trakm8 also said it had implemented around £2mln in annualised savings, which would be “fully effective” at the start of its 2019 fiscal year, adding that it was “confident” of a “measurable improvement in performance” for the fiscal year ending 31 March 2020.

Shares were down 6.6% at 28.5p.

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