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Trakm8 shares fall as it cautions on first-half revenue as 2017/18 revenue and profit jump

The AIM-listed telematics firm and data supply company said it expects its revenue in the first half to be below the 2017/18 figure due to “customer inventory build-up" in the fourth quarter

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For the year ended March, Trakm8 saw its pre-tax profit jump by 71% to £1.2mln, up from £700,000 a year earlier

Trakm8 Holdings PLC (LON:TRAK) saw its shares fall on Monday as it cautioned on its first-half 2018/19 revenue as it reported a rise in 2017/18 annual revenue and profit.

The AIM-listed telematics firm and data supply company said it expects its revenue in the first half to be below the 2017/18 figure due to “customer inventory build-up" in the fourth quarter and "terminated Contract Electronics Manufacturing activities".

WATCH: Trakm8 increasing its focus on sales and marketing after strong 2017

For the year ended March, the firm saw its pre-tax profit jump by 71% to £1.2mln, up from £700,000 a year earlier, as revenue rose by 12% to £30.1mln from £26.8mln.

Trakm8 said the "significant improvement" in profit was driven by strong revenue growth at its Solutions business, which was up 26% to £26.8mln from £21.3,mln.

Looking ahead, the firm said it expects its full year results for 2018/19 to be in line with expectations and "higher than financial year 2017/18".

The company said it expects to expand its international business in Europe and Asia whilst continuing to grow its domestic business in the UK.

Operating costs reduced, savings achieved

Trakm8’s executive chairman, John Watkins said: "Our ambition to reduce annual operating costs by £1.5mln was successfully achieved by the half year, and delivered full-year savings of £2mln.”

He added: "We have continued to develop market leading software and hardware solutions and during the year launched the new Insight software platform and the RoadHawk 600, which have provided the group with a strong pipeline of opportunities.”

Trakm8 is, once again not proposing a dividend for the year.

In late afternoon trading, Trakm8 shares were 8.6% lower at 96p.

Quick facts: Trakm8 Holdings PLC

Price: 22 GBX

AIM:TRAK
Market: AIM
Market Cap: £10.99 m
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