Proactive Investors - Run By Investors For Investors

Telematics group Trakm8 blasts sales team as it swings to a loss

“The Fleet Management sales team simply failed to win enough business to meet our expectations”
A drop in market share for a key insurance customer also affected Trakm8

Telematics and vehicle tracking group Trakm8 Holdings PLC (LON:TRAK) has blasted its sales team after it swung to a loss last year.

Losses totalled £3.6mln in the 12 months ended 31 March 2019, down from a small profit of £0.5mln a year earlier.

READ: Trakm8 hits the skids as Brexit-related delays take chunk out of revenue

The drop in profitability came amid a plunge in revenue, which fell 35% to £19.1mln (2018: £29.4mln).

Much of the fall was as a result of its major customer losing market share in the young driver insurance market, meaning it required fewer telematics boxes.

But the fleet management business, which tracks cars and can stop them from going into certain areas, also struggled, and Trakm8 was upfront about the reasons why.

“The Fleet Management sales team simply failed to win enough business to meet our expectations.”

Looking ahead, bosses are being “prudent” with their forecasts, although they expect a “relatively modest recovery” in revenues – low double-digit growth – with a small adjusted profit.

Shares were down 20% to 18p in late-morning trading, valuing the company at £9mln.

View full TRAK profile View Profile

Trakm8 Holdings PLC Timeline

Related Articles

MRI scanner
March 19 2019
The company invests and helps build companies in the medical and technology sectors, with a target exit valuation of over US$100mln
May 15 2019
The company’s products can be used for wireless and mobile internet applications, while its military hardware encompasses a range of tactical and specialised communications antennas
June 17 2019
Signs FPGA Smartnic deal with Chinese firm FiberHome

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use