21 December 2010

 

TRAKM8 HOLDINGS PLC

("Trakm8" or "the Group")

 

Interim Results

 

Trakm8, a provider to the global telematics market place, is pleased to announce its unaudited results for the six months ended 30 September 2010:

 

Highlights

 

	Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
	£'000	£'000	£'000
Turnover	1,723	1,706	3,426
Gross Profit	1,171	1,138	2,302
Gross Profit %	68.0%	66.7%	67.2%
Earnings before interest, depreciation  & amortisation	301	244	551
Profit before tax	162	100	261
Net cash and cash equivalents	399	444	692
Net assets	2,187	1,554	2,019

 

·          Gross profit margin increased by 1.3% on equivalent period last year

·          EBITDA of £0.30m and profit before tax of £0.16m

·          Net cash of £0.40m at the period end

·          Acquisition of Telematics assets from Vincotech

 

Dawson Buck, Chairman, said "These results confirm a continuation of growth in profits and at the same time we are successfully broadening the range and quality of our customer base.  We continue to be optimistic about our future prospects."

 

For further information, please visit www.trakm8.com or contact:

 

Trakm8 plc John Watkins, Chief Executive Officer James Hedges, Finance Director	01747 858 444
Tavistock Communications Simon Hudson	020 7920 3150
Arbuthnot Securities Hugh Field	020 7012 2000

Chairman's Statement

 

The first six months of this financial year have continued the positive trends established last year.

 

Revenues in the period increased to £1.72m (2009: £1.71m) and although this a relatively modest increase, it marks the return to revenue growth. We have continued to focus on higher margin products and customers which has resulted in an increase in profit before tax to £0.16m (2009: profit £0.10m).

 

The acquisition of the Vincotech telematics products on 23 September 2010 has expanded the portfolio of hardware options and brought several new customers to the Company.

 

Operational Review

During the period the Group started to deliver units as part of the St Gobain contract (announced in June 2010) together with substantial bespoke system development work. There has also been a continued expansion of the customer base as a greater emphasis on marketing which has started to produce benefits.

 

Trakm8 has continued to make good progress in increasing the number of units in service operating on the Trakm8 Swift platform. The trend of increasing the recurring revenues from the installed base has been most positive. At the end of the period the monthly recurring revenue was 57% of the operating costs of the business up from 43% at the end of September 2009. This is the bedrock of securing the long term profitability of the Group.

 

Trakm8 has also broadened the range and quality of customers purchasing the hardware products only. Trakm8 is also capitalising on its' ability to provide engineering services alongside the products and this customer specific engineering provision is proving to be greatly appreciated.

 

The Group has continued to invest heavily in technology developments in server side solutions, onboard CANbus, emissions and fuel economy reporting and mapping software. Trakm8 has also made excellent progress on the development of the next generation hardware platform - the T8. The T8 has increased functionality enabling Trakm8 to provide solutions to the most demanding of applications. Considerable progress has also been made on the government funded projects. These projects are jointly funded and have applications that benefit the long term product portfolio of the Group.

 

Outlook

The Trakm8 Group is confident that the business is beginning to deliver the potential of the excellent people, products and services within the business. The increased product portfolio from both the Vincotech product line and the new Trakm8 T8 provides an excellent basis for expansion both geographically and in complexity of solutions.

 

Innovative developments in new cost effective server side applications will be launched over the coming months and much is expected of these.

 

Recent order entry and increase in the pipeline for both large and small customers gives confidence that revenues and profits will continue to increase.  Trakm8 is also well positioned to benefit from the demand for increasingly complex fleet management solutions.

 

  

Dawson Buck

Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months to 30 September 2010

 

	Note	Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
Continuing operations		£'000	£'000	£'000
Revenue		1,723	1,706	3,426
Cost of sales		(552)	(568)	(1,124)
Gross profit		1,171	1,138	2,302
Other income		281	284	583
Administrative expenses		(1,287)	(1,314)	(2,609)
Profit from operations		165	108	276
Finance income		1	-	-
Finance costs		(4)	(8)	(15)
Profit before taxation		162	100	261
Income tax		-	-	300
Profit attributable to the owners of the parent		162	100	561
Other Comprehensive Income
Currency translation differences		-	-	1
Total Comprehensive Income for the period attributable to owners of the parent		162	100	562
Basic profit per share (pence)	4	0.86	0.57	3.09
Diluted profit per share (pence)	4	0.85	0.57	3.06

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months to 30 September 2010

 

	Share Capital	Share premium	Shares to be issued	Merger Reserve	Share based payment reserve	Translation reserve	Retained earnings	Total equity attributable to owners of the parent
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 April 2009	139	1,358	141	510	57	204	(1,227)	1,182
Comprehensive income
Profit for the period	-	-	-	-	-	-	100	100
Total comprehensive income	-	-	-	-	-	-	100	100
Transactions with owners
Issue of shares	49	361	(141)	-	-	-	-	269
IFRS2 Share based payments	-	-	-	-	3	-	-	3
Transactions with owners	49	361	(141)	-	3	-	-	272
Balance as at 30 Sept 2009	188	1,719	-	510	60	204	(1,127)	1,554
Comprehensive income
Profit for the period	-	-	-	-	-	-	461	461
Other comprehensive income
Exchange differences on translation of overseas operations	-	-	-	-	-	1	-	1
Total comprehensive income	-	-	-	-	-	1	461	462
Transactions with owners
IFRS2 Share based payments	-	-	-	-	3	-	-	3
Transactions with owners	-	-	-	-	3	-	-	3
Balance as at 31 March 2010	188	1,719	-	510	63	205	(666)	2,019
Comprehensive income
Profit for the period	-	-	-	-	-	-	162	162
Total comprehensive income	-	-	-	-	-	-	162	162
Transactions with owners
IFRS2 Share based payments	-	-	-	-	6	-	-	6
Transactions with owners	-	-	-	-	6	-	-	6
Balance as at 30 Sept 2010	188	1,719	-	510	69	205	(504)	2,187

 

 

 

CONSOLIDATED BALANCE SHEET

as at 30 September 2010

 

	30 September 2010 Unaudited	30 September 2009 Unaudited	31 March 2010 Audited
	£'000	£'000	£'000
Non-current assets
Intangible assets	1,146	1,236	1,114
Plant, property and equipment	469	444	444
Deferred income tax asset	198	-	198
	1,813	1,680	1,756
Current assets
Inventories	158	110	107
Trade and other receivables	953	621	701
Current tax	-	-	84
Cash and cash equivalents	399	444	692
	1,510	1,175	1,584
Current liabilities
Trade and other payables	(932)	(1,006)	(1,098)
Borrowings	(33)	(54)	(37)
	(965)	(1,060)	(1,135)
Current assets less current liabilities	545	115	449
Total assets less current liabilities	2,358	1,795	2,205
Non-current liabilities
Borrowings	(171)	(223)	(186)
Deferred tax	-	(18)	-
	(171)	(241)	(186)
Net assets	2,187	1,554	2,019

 

Equity
	Note
Called up share capital	4	188	188	188
Share premium		1,719	1,719	1,719
Merger reserve		510	510	510
Share based payment reserve		69	60	63
Translation Reserve		205	204	205
Retained loss		(504)	(1,127)	(666)
Total equity attributable to owners of the parent		2,187	1,554	2,019

 

CONSOLIDATED CASH FLOW STATEMENT

for the six months to 30 September 2010

 

					Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
	Note				£'000	£'000	£'000
Cash flows from operating activities		5			(81)	112	430
Cash flows from investing activities
Purchase of intangible assets					(153)	-	-
Purchases of property, plant and equipment					(40)	(5)	(7)
Net cash used in investing activities					(193)	(5)	(7)
Cash flows from financing activities
Proceeds from share issue					-	269	269
Repayment of obligations under hire purchase contracts					(9)	-	(11)
Repayment of loans					(10)	(31)	(88)
Net cash used in financing activities					(19)	238	170
Net increase / (decrease) in cash and cash equivalents					(293)	345	593
Cash and cash equivalents at beginning of period					692	99	99
Cash and cash equivalents at end of period					399	444	692

Notes to the financial information (unaudited)

 

1.   The financial information contained in this interim statement has not been audited or reviewed by the Company's auditor and does not constitute statutory accounts as defined Section 434 of the Companies Act 2006.  The Directors approved and authorised this interim statement on 19 December 2010.  The financial information for the preceding full year is extracted from the statutory accounts for the financial year ended 31 March 2010.  Those accounts, upon which the auditor issued an unqualified opinion and did not include a statement under Section 498(2) or (3), have been delivered to the Registrar of Companies.

 

2.   Trakm8 Holdings PLC is a public limited company incorporated in the United Kingdom under the Companies Act 2006.  The Company is domiciled in the United Kingdom and its ordinary shares are traded on AIM, the market operated by the London Stock Exchange plc.

 

3.   As permitted this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore is not fully in compliance with IFRS.  The Interim results have been prepared in a manner consistent with the accounting policies set out in the statutory accounts for the financial year ending 31 March 2010.

 

4.   Profit per ordinary share attributable to the owners of the parent

 

	Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
	£'000	£'000	£'000
Profit attributable to the owners of the parent	162	100	561

 

Weighted average number of ordinary shares in issue

 

	Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
	No. '000	No. '000	No. '000
Basic	18,764	17,569	18,165
Diluted	19,115	17,620	18,360

 

 

 

5.       Reconciliation of cash flows from operating activities:

 

	Six months to 30 September 2010 Unaudited	Six months to 30 September 2009 Unaudited	Year to 31 March 2010 Audited
	£'000	£'000	£'000
Net profit before taxation	162	100	261
Adjustments for:
Depreciation	15	14	31
Bank and other interest charges	3	8	15
Amortisation of intangible assets	121	122	244
Share based payment expense	6	2	5
Operating cashflows before movement in working capital	307	246	556
Retranslation of overseas operations	-	-	1
Movement in inventories	(51)	50	53
Movement in trade and other receivables	(252)	79	(1)
Movement in trade and other payables	(166)	(264)	(173)
Cash generated from / (used in) operations	(162)	111	436
Interest paid	(4)	(8)	(15)
Interest received	1	-	-
Income taxes received	84	9	9
Net cash generated from /(used in) operating activities	(81)	112	430

 

 

6.    Copies of the report are available at the Companies website www.trakm8.com and also from the registered office of Trakm8 Holdings PLC.  The address of the registered office is: Lydden House, Wincombe Business Park, Shaftesbury, Dorset SP7 9QJ.