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".
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.