25 April 2013
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Trading Update
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Visilink Agreement
Trakm8, the AIM-listed designer and developer of GPRS based hardware and software for the vehicle placement and security market, is pleased to provide an update on trading for the year ended 31 March 2013, and in addition announces the signing of an agreement with Visilink Ltd.
Trading Update
In November 2012, the Group announced a strategic investment in sales and engineering. This expansion of the headcount has been successfully undertaken with a number of high quality new staff hired. The Group is pleased to report that it has remained profitable for the full year despite these increased staff costs, the benefits of which are now expected to be realised in the second half of this new financial year and more fully in future years. Revenues during the year to 31 March 2013 were slightly down on the previous year, mainly due to the timing of major new contracts that missed this financial year but that should positively impact the next. Today we have also announced an agreement relating to new Trakm8 customers previously serviced by Visilink (for further information see below).
Gross margins have continued to improve on the back of increasing recurring revenues. This performance is particularly pleasing in the light of difficult market conditions and economic uncertainty. In addition, the Group has significantly improved its already strong cash balances to £1.4m at year end.
The Group has launched several new solutions this year including the ecoN driver behaviour package, Dynamics, a routing package, and Prime, a low cost track and trace package.
The Group expects to announce its preliminary results for the year ended 31 March 2013 in early July 2013.
Visilink Product Transfer Agreement
Trakm8 is pleased to announce that it has signed a product transfer agreement with Cheshire based Telematics Service Provider, Visilink Ltd. Visilink evolved from the telematics company Eagle-i. Under the agreement Visilink's entire customer base has been offered the opportunity to transfer to Trakm8's Swift telematics solution. This has already generated additional units reporting onto the Trakm8 Swift solution and provided upgrade opportunities with a number of new customers.
The agreement has been established to resolve Visilink customers' inability to upgrade their existing telematics software. Trakm8's latest Swift solution provides a number of additional features and enhancements to their previous system. The transition to Trakm8 has been made a seamless change as it does not require any hardware changes and very little or no down time. Furthermore, many customers are taking the opportunity to look at the Trakm8 ecoN solution, which does require a hardware change but will provide the additional benefit of fuel savings and driver behaviour monitoring opportunities.
John Watkins, CEO of Trakm8, commented:
"Trakm8 is delighted to offer Visilink customers the opportunity to transfer to Trakm8's solutions, allowing us to broaden our footprint in the UK. We will do everything possible to ensure a smooth transition and a productive future cooperation with customers that transition.
"Having established a strong financial base we are embarking on a period of significant expansion. The Board is confident that this investment strategy will deliver increased revenues and shareholder value in the near term."
Ends
For further information please contact:
Trakm8 Holdings plc John Watkins, Chief Executive Officer James Hedges, Finance Director |
01747 858444 |
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finnCap |
020 7220 0500 |
Ed Frisby / Christopher Raggett - corporate finance Simon Starr - corporate broking |
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MHP Communications |
020 3128 8100 |
Reg Hoare / Vicky Watkins |
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