Market Cap: £109.8m; Current Price: 233p
H1 inline – growth across UK, France and US
- Revenue +24% to £9.2m with fleet sector revenue +17% to £6.2m and insurance revenue +43% to £3.0m. Operating profit +8% to £2.7m, adj. PBT +9% to £2.7m and adj. EPS +9% to 4.67p. Interim DPS of 2p. Net cash of £0.8m (FY14: net debt of £0.2m), having paid a maiden dividend of £1.4m in May.
- New fleet installations +44% to 10.733 units and fleet subscription base +12% to 66,806 vehicles with active customer base +13% to 7,150 – attrition on a 12-month basis at 10%, below the industry average (14%). Strong growth in the US following its investment programme albeit from a low base. Insurance installations +64% to 25,438.
- Total installation of 36,171 new tracking systems in H1 (+58%) and 22% increase in recurring revenue in fleet sector to £5.7m. Growth in new installations in the fleet business across UK, French and US markets and via direct and indirect channels. Growth in insurance was driven mainly by two new projects. One will come to an end in Q3 but another project is expected to start before year end.
NORTHLAND CAPITAL PARTNERS VIEW: Good set of interims with growth across the UK, French and US markets. The latter is at an early stage but the initial signs are encouraging. The company’s subscription revenue model provides good levels of revenue visibility and Quartix’s attrition rate is comfortably below the industry average. Shares have spiked since the trading statement at the start of the month and are now trading at 24.8x FY15 and 20.7x FY16 that assumes good growth.