TIDMTRAK
RNS Number : 5303U
Trakm8 Holdings PLC
24 November 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
24 November 2023
TRAKM8 HOLDINGS PLC
("Trakm8" or the "Group")
Half Year Results
Trakm8 Holdings plc (AIM: TRAK), the global telematics and data
insight provider, announces its unaudited results for the six
months ended 30 September 2023:
Financial Highlights
6 months 6 months Year to
to to 31
30 Sept 30 Sept March 2023
2023 2022
-----------
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
---------- ---------- -----------
Revenue 8,537 9,012 20,197
---------- ---------- -----------
of which, recurring revenue(1) 5,234 5,076 10,466
---------- ---------- -----------
Profit/(Loss) before
tax 13 (2,413) (1,243)
---------- ---------- -----------
Adjusted Profit/(Loss)
before tax(2) 119 (1,077) 306
---------- ---------- -----------
Profit/(Loss) after tax 94 (1,775) (774)
---------- ---------- -----------
Cash generated from operations 2,349 1,435 4,314
---------- ---------- -----------
Net Bank Debt(3) 5,570 6,243 5,618
---------- ---------- -----------
Basic earnings/(loss)
per share 0.22p (3.55p) (1.57p)
---------- ---------- -----------
Adjusted basic earnings/(loss)
per share 0.38p (1.37p) 0.95p
---------- ---------- -----------
1 Recurring revenues are generated from service and maintenance
fees
2 Before exceptional costs and share based payments
3. Total borrowings less cash excluding IFRS 16 adjustment for
leased property and motor vehicles
Operational Overview
-- H1 2023 results:
o Revenues modestly lower due to significant insurance capacity
driven reduction in demand
o Gross margins significantly improved
o Overheads significantly reduced
o Losses eliminated with a shift towards profitability
o Improved cash generation from operations - c. 63 per cent
increase on the comparable period
-- H2 2023/24 and FY2025 outlook:
o Insurance capacity not expected to return significantly this
year; however new customers improving demand for H2 2023/24 and
capacity is expected to recover for FY25
o Major automotive customer demand expected to positively impact
FY25
o Substantial investment in second Data Centre to reduce
operation costs by GBP0.6m per annum
o Large Optimisation software contract sale still expected to
conclude in FY24
Outlook
The Board expects to meet market expectations, provided a
significant software sale is secured late in FY24. In this respect,
discussions are ongoing to secure a large optimisation software
sales contract, and while there can be no certainty, the Board
remains confident of the prospects of concluding such discussions
in FY24.
- Ends -
For further information:
Trakm8 Holdings plc
John Watkins, Executive Chairman Tel: +44 (0) 1675 434
200
Jon Edwards, Chief Financial Officer www.trakm8.com
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328 5656
& Broker)
David Hart / Vivek Bhardwaj, Corporate www.allenbycapital.com
Finance
Tony Quirke / Joscelin Pinnington, Sales
and Corporate Broking
About Trakm8
Trakm8 is a UK based technology leader in fleet management,
insurance telematics, connected car, and optimisation. Through IP
owned technology, the Group uses AI data analytics collected from
its installed base of telematics units to fine tune the algorithms
that are used to produce its' solutions; these monitor driver
behaviour, identify crash events and monitor vehicle health to
provide actionable insights to continuously improve the security
and operational efficiency of both company fleets and private
drivers.
The Group's product portfolio includes the latest data analytics
and reporting portal (Trakm8 Insight), integrated
telematics/cameras/optimisation, self-installed telematics units
and one of the widest ranges of installed telematics devices.
Trakm8 has over 324,000 connections.
Headquartered in Coleshill near Birmingham alongside its
manufacturing facility, the Group supplies to the Fleet,
Optimisation, Insurance and Automotive sectors to many well-known
customers in the UK and internationally including the AA, Stark
Building Materials, EON, Iceland Foods, GSF Car Parts, Direct Line
Group, and Freedom Group.
Trakm8 has been listed on the AIM market of the London Stock
Exchange since 2005. Trakm8 is also recognised with the LSE Green
Economy Mark.
www.trakm8.com / @Trakm8
Executive Chairman's Statement
Results
I am pleased to report Trakm8's unaudited results for the six
months ended 30 September 2023 ("H1 2023").
The first half of the financial year was in line with recent
Company guidance. Revenues for the unaudited six-month period ended
30 September 2023 were modestly lower in comparison to the
corresponding period of the previous financial year at GBP8.54m (H1
2022: GBP9.01m).
In H1 2023, there was a 2% increase in Fleet & Optimisation
revenues to GBP4.90m and a reduction of 13% in Insurance revenues
to GBP3.63m. We have reported previously on the dreadful current
state of the UK motor insurance market, and this has had a
significant impact on us. We estimate that the loss of insurance
capacity has reduced revenues in the financial period concerned by
GBP1.6m with overall c onnections reducing by 7% to 324,000 (FY
ending 31.3.2023: 348,000) . Notwithstanding this deterioration,
there are some positives with a 14% uplift in our Automotive
revenues during the financial period as a result of the success of
our customers' service, maintenance and repair activities.
The Group is pleased to report a significant improvement in the
profitability of the Group with an Adjusted Profit of GBP0.10m (H1
2022: loss GBP1.08m), Profit before Tax of GBP13k (H1 2022: loss
GBP2.41m) and Profit after Tax of GBP0.10m (H1 2022: loss
GBP1.78m).
During the period, material increases in motor insurance
premiums and capacity constraints caused Insurance unit sales to
reduce by 31% to 66,000 and Insurance & Automotive connections
to decrease by 7% to 259,000 (FY ending 31.3.23: 279,000).
Notwithstanding this, we do believe that new policies written will
exceed cancelled policies going forward.
In Fleet & Optimisation, o ur focus on Enterprise and higher
margin business has resulted in connections decreasing by 6% to
65,000 (FY Ending 31.3.23: 69,000), with higher attrition in the
small fleet sector, but revenues continuing to grow as previously
reported. Fleet unit sales also decreased by 38% to 5,000 but with
corresponding device revenues up 20% as more complex solutions
continued to be delivered to new and existing customers.
Pleasingly, Recurring Revenues in the period increased over the
previous year by 3% to GBP5.23m and represent 61% of the Group's
overall revenues. In addition, the Group generated GBP0.20m of
software revenues (H1 2022: GBP0.12m), which represent 2% of the
Group's overall revenues. Software contract revenues are again
weighted to the second half of the financial year, as was the case
in previous financial years, from both new and existing customers
who rely on our solutions for their fleet operations.
The supply chain challenges of the previous year are largely
behind us. We have designed all new hardware products with the
latest components that are more expensive than those they replaced,
but we expect that these new components will start to reduce in
cost next year. Despite this material cost impact, gross profit
margin has improved to 67% (H1 2022: 58%). This is due in part to
improved factory efficiencies but also the higher recurring
revenues as a percentage of sales. Despite the insurance demand
reduction, commitments to suppliers for components have not
commensurately been deferred and inventory has accordingly
continued to increase. It is expected that this increase in
inventory will be reduced somewhat this financial year, with
further reductions taking place in the next financial year.
In 2018, we launched the RH600, the first 4G live streaming
integrated telematics camera, which has since received multiple
industry awards. This year we have launched the RH800, which has
core technology based on the RH600 but is capable of being used in
the five camera solutions which are increasingly common. We expect
that the RH800 will be the same leap forward in technology for the
market that the RH600 was.
At the end of H1 2022, the Company embarked on a refocus of
business activities and as a result was able to significantly
reduce overheads. Overall, overheads have reduced by GBP913k
compared to the previous financial period.
Financial position
Cash generation from operations was GBP2.35m (H1 2022: GBP1.44m)
and as at 30 September 2023, the Group's net bank debt, excluding
the impact of the IFRS16 lease liability, was GBP5.57m (H1 2022
GBP6.24m), representing a reduction of GBP0.05m compared to the end
the previous financial year. The capital investment project for our
second data centre of GBP0.5m increased debt by GBP0.2m in the
financial period concerned. Further capital investment is
anticipated to be committed in early H2 2023. The Board believes
that this capital investment should generate significant return on
investment over the coming months and will ensure that we continue
to deliver cutting edge solutions to our customers. As at 30
September 2023, the Group had GBP0.87m of cash on hand and a
further GBP0.50m of available funds under an existing overdraft
facility.
The overall cash outflow for the financial period was GBP0.25m
(H1 2022: inflow of GBP0.29m).
Strategy
The Group has been following the strategy outlined in its final
results for the year ended 31 March 2023, which was announced on 4
July 2023. Our focus is to provide ever more meaningful insights to
our customers using the data generated by our installed devices and
other connections so that they can run their operations more
efficiently and safely.
Our primary strategy going forward is continuing to grow the
business through more connections, increased device sales and
higher service fees. However, there have been serious headwinds in
the motor insurance market with material policy price increases and
a reduction in capacity. Although we have secured a number of
additional customers, there has been a reduction in total
connections. Despite this, we believe that the point has come that
growth in connections will now restart. We are also expecting our
Optimisation business to expand further into the home delivery
space.
Trakm8 has focused on delivering market leading technology and
ensures that the solutions are generating the best possible returns
for our customers. We have reduced the levels of expenditure in
R&D as we now have the latest technology in all our devices and
our Insight platform is mostly feature complete. The launch of the
RH800 for multicamera applications is a significant step forward in
the Fleet market. We continue to own the majority of intellectual
property in our value chain. We have been building out greater
functionality of existing solutions. As a result, going forward we
will meet our objectives of remaining a leading-edge technology
company but at a lower investment cost.
Our third strategy has been to improve the efficiencies of our
business in every possible way. We have been successful in
significantly reducing our future overhead costs by GBP2.1m per
annum and have implemented the investment in a second data centre,
which will reduce our hosting costs by GBP0.6m per annum. We will
continue to seek out further external cost reductions.
JOHN WATKINS
Executive Chairman
Unaudited Consolidated Statement of Comprehensive Income for the
six months to 30 September 2023
Six months Six months Year to
to 30 September to 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 3 8,537 9,012 20,197
Cost of sales (2,817) (3,786) (7,445)
Exceptional cost of sales - - (261)
---------------- ---------------- ---------
Gross profit 5,720 5,226 12,491
Other income 4 - 16 16
Administrative expenses excluding exceptional
costs (5,184) (6,097) (11,860)
Exceptional administrative costs 7 (94) (1,319) (1,272)
---------------- ---------------- ---------
Total administrative costs (5,278) (7,416) (13,132)
Operating profit/(loss) 442 (2,174) (625)
Finance income 13 29 50
Finance costs 8 (442) (268) (668)
---------------- ---------------- ---------
Profit/(Loss) before taxation 13 (2,413) (1,243)
Income tax 96 636 460
---------------- ---------------- ---------
Profit/(Loss) for the period 109 (1,777) (783)
Other Comprehensive Income
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translation of foreign
operations (15) 2 9
---------------- ---------------- ---------
Total other comprehensive income (15) 2 9
---------------- ---------------- ---------
Total Comprehensive Profit/(Loss) for the
period attributable to owners
of the parent 5 94 (1,775) (774)
---------------- ---------------- ---------
Profit/(Loss) before taxation 6 13 (2,413) (1,243)
---------------- ---------------- ---------
Exceptional cost of sales - - 261
Exceptional administrative costs 94 1,319 1,272
IFRS2 Share based payments charge 12 17 16
---------------- ---------------- ---------
Adjusted profit/(loss) before tax 119 (1,077) 306
Earnings per ordinary share (pence) attributable
to owners of the Parent
Basic 9 0.22 (3.55) (1.57)
Diluted 9 0.22 (3.55) (1.57)
The results relate to continuing operations.
Unaudited Consolidated Statement of Changes in Equity for the
six months to 30 September 2023
Share Share Merger Translation Treasury Convertible Retained Total
capital premium reserve reserve reserve loan reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 April
2022 500 14,691 1,138 203 (4) - 3,348 19,876
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Comprehensive
income
Loss for the
period - - - - - - (1,777) (1,777)
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 2 - - - 2
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Total
comprehensive
income - - - 2 - - (1,777) (1,775)
Transactions
with
owners
IFRS 2
Share-based
payments - - - - - - 17 17
Convertible
Loan - - - - - 11 - 11
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Transactions
with
owners - - - - - 11 17 28
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Balance as at
30 Sept
2022 500 14,691 1,138 205 (4) 11 1,588 18,129
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Comprehensive
income
Profit for the
period - - - - - - 994 994
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - 7 - - - 7
Total
comprehensive
income - - - 7 - - 994 1,001
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Transactions
with
owners
IFRS2
Share-based
payments - - - - - - (1) (1)
Transactions
with
owners - - - - - - (1) (1)
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Balance as at
31 March
2023 500 14,691 1,138 212 (4) 11 2,581 19,129
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Comprehensive
income
Profit for the
period - - - - - - 109 109
Other
comprehensive
income
Exchange
differences
on
translation
of overseas
operations - - - (15) - - (15)
Total
comprehensive
income - - - (15) - - 109 94
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Transactions
with
owners
IFRS2 Share
based
payments - - - - - - 12 12
Convertible
loan - - - - - - - -
Transactions
with
owners - - - - - - 12 12
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Balance as at
30 Sept
2023 500 14,691 1,138 197 (4) 11 2,702 19,235
----------------------- ------------------- -------------------- ------------------- ------------------ --------------------------- -------------------------- ------------------------
Unaudited Consolidated Statement of Financial Position as at 30 September 2023
As at As at As at
30 September 30 September 31 March
2023 2022 2023
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 10 23,397 23,277 23,382
Plant, property and equipment 1,125 1,034 1,103
Right of use assets 11 1,994 1,751 1,711
Deferred income tax asset - - -
Amounts receivable under finance leases - 39 4
------------- ---------------- ---------
26,516 26,101 26,200
------------- ---------------- ---------
Current assets
Inventories 2,813 1,352 2,426
Trade and other receivables 6,362 7,158 7,948
Corporation tax receivable 861 1,150 856
Cash and cash equivalents 874 1,174 1,119
------------- ---------------- ---------
10,910 10,834 12,349
------------- ---------------- ---------
Current liabilities
Trade and other payables (8,532) (8,806) (9,196)
Borrowings 12 (5,847) (897) (1,031)
Right of use liability 12 (557) (487) (466)
Provisions - - (74)
------------- ---------------- ---------
(14,936) (10,190) (10,767)
------------- ---------------- ---------
Current assets less current liabilities (4,026) 644 1,582
------------- ---------------- ---------
Total assets less current liabilities 22,490 26,745 27,782
------------- ---------------- ---------
Non-current liabilities
Trade and other payables (474) (474) (828)
Borrowings 12 (213) (6,176) (5,435)
Right of use liability 12 (1,273) (1,258) (1,113)
Provisions (261) (160) (166)
Deferred income tax liability (1,034) (548) (1,111)
------------- ---------------- ---------
(3,255) (8,616) (8,653)
------------- ---------------- ---------
Net assets 19,235 18,129 19,129
------------- ---------------- ---------
Equity
Share capital 13 500 500 500
Share premium 14,691 14,691 14,691
Merger reserve 1,138 1,138 1,138
Translation reserve 197 205 212
Treasury reserve (4) (4) (4)
Convertible loan reserve 11 11 11
Retained earnings 2,702 1,588 2,581
------------- ---------------- ---------
Total equity attributable to owners
of the parent 19,235 18,129 19,129
------------- ---------------- ---------
Unaudited Consolidated Cash Flow Statement for the six months to
30 September 2023
Six months Six months Year to
to to 31 March
30 September 30 September
2023 2022 2023
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net cash generated from operating
activities 14 2,349 1,435 4,314
--------------- --------------- ----------
Cash flows from investing activities
Purchases of property, plant and equipment (373) (332) (749)
Proceeds from sale of property, plant - - -
and equipment
Purchases of software - (8) (12)
Capitalised Development costs (1,102) (1,447) (2,658)
--------------- --------------- ----------
Net cash used in investing activities (1,475) (1,787) (3,419)
--------------- --------------- ----------
Cash flows from financing activities
New convertible loan note - 1,580 1,580
Loan arrangement fees (42) (13) (36)
Repayment of bank loans (469) (512) (1,095)
Repayment of obligations under lease
agreements (229) (324) (619)
Interest paid (379) (209) (610)
--------------- --------------- ----------
Net cash generated from financing
activities (1,119) 522 (780)
--------------- --------------- ----------
Net (decrease)/increase in cash and
cash equivalents (245) 170 115
Cash and cash equivalents at beginning
of period 1,119 1,004 1,004
--------------- --------------- ----------
Cash and cash equivalents at end of
period 874 1,174 1,119
--------------- --------------- ----------
1. Basis of preparation
The Group's interim results for the 6 months to 30 September
2023 (prior year 30 September 2022) were approved by the Board of
Directors on 23 November 2023.
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.
Trakm8 Holdings PLC ("Trakm8") is a public limited company
incorporated in the United Kingdom under the Companies Act 2006.
Trakm8 is domiciled in the United Kingdom and its ordinary shares
are traded on AIM, the market operated by the London Stock Exchange
plc.
The accounting policies adopted in the preparation of the
interim financial statement are the same as those set out in the
Group's annual financial statements for the year ended 31 March
2023. The financial statements have been prepared on the historical
cost basis except for certain liabilities and share based payment
liabilities which are measured at fair value.
The interim financial statements have not been audited or
reviewed by Group's auditors pursuant to the Auditing Practice
Board guidance on 'Review of Interim Financial Information' and do
not include all of the information required for full annual
financial statements.
The financial information contained in this report is condensed
and does not constitute statutory accounts of the Group within the
meaning of Section 434(3) of the Companies Act 2006. Statutory
accounts for the year ended 31 March 2023 have been delivered to
the Registrar of Companies. The audit report of those accounts was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under Section 498(2) or
(3) of the Companies Act 2006.
Going concern
The consolidated interim financial statements are prepared on a
going concern basis. The directors report that, having reviewed
current performance and projections of its working capital and long
term funding requirements, including assessments against the
covenants agreed with our bank and downward sensitivity analysis,
they are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, a period of not
less than 12 months from the date of this report. Accordingly, they
continue to adopt the going concern basis in preparing the
condensed financial statements
2. Risks and uncertainties
The Board has considered the principal risks and uncertainties
for the remaining half of the financial year and determined that
the risks presented in the 31 March 2023 Annual Report, described
as follows, also remain relevant to the rest of the financial year:
Deteriorating economic climate; Cyber-attack and data security;
Attracting and maintaining high quality employees; Operating in a
fast moving technology industry where we will always be at risk
from new products being launched; Significant operational failure;
Adverse mobile network changes; Access to long term and working
capital; Electronics supply chain under constraint; Business
disruption from communicable diseases. These are detailed on pages
20 to 22 of the 2023 of the Annual Report, a copy of which is
available on the Group's website at www.trakm8.com.
3. Segmental Analysis
The chief operating decision maker ("CODM") is identified as the
Board. It continues to define all the Group's trading under the
single Integrated Telematics Technology segment and therefore
review the results of the group as a whole. Consequently all of the
Group's revenue, expenses, assets and liabilities are in respect of
one Integrated Telematics Technology segment.
The Board as the CODM review the revenue streams of Integrated
Fleet, Optimisation, Insurance and Automotive Solutions (Solutions)
as part of their internal reporting. Solutions represents the sale
of the Group's full vehicle telematics and optimisation services,
engineering services, professional services and mapping solutions
to customers.
A breakdown of revenue within these streams Six months Six months Year to
are as follows: to to 31 March
30 September 30 September
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Solutions: 8,537 9,012 20,197
----------------- ---------------- ---------
Fleet and optimisation 4,908 4,828 11,475
Insurance and automotive 3,629 4,184 8,722
----------------- ---------------- ---------
4. Other income Six months Six months Year to
to 30 September to 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Grant income - 16 16
------------------ ------------------ --------------
- 16 16
------------------ ------------------ --------------
5. Profit/(Loss) per ordinary share attributable
to the owners of the parent
Six months Six months Year to
to 30 September to 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit/(Loss) attributable to the owners of
the parent 94 (1,775) (774)
------------------ ------------------ --------------
6. Adjusted profit/(loss) before tax
Adjusted Profit/(Loss) Before Tax is monitored
by the Board and measured as follows:
Profit/(Loss) Before Tax 13 (2,413) (1,243)
Exceptional costs 94 1,319 1,533
Share based payments 12 17 16
------------------ ------------------ --------------
Adjusted profit/(loss) before tax 119 (1,077) 306
------------------ ------------------ --------------
7. Exceptional costs
Six months Six months Year to
to 30 September to 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Exceptional cost of sales
Covid-19 - component acquisition - - 261
------------------ ------------------ --------------
Exceptional administrative costs - - 261
Integration and restructuring costs 94 902 234
Covid-19 costs - 417 1,038
------------------ ------------------ --------------
94 1,319 1,272
------------------ ------------------ --------------
94 1,319 1,533
------------------ ------------------ --------------
The integration and restructuring costs in the current year
relate to the Group's decision last year to implement a change in
strategy to focus on the Insurance, Automotive and Optimisation
sectors. These costs include final amounts implementing various
cost reductions including professional fees.
Detailed explanation of prior year exceptional costs are
detailed on page 66 of the 2023 Annual Report, a copy of which is
available on the Group's website at www.trakm8.com.
8. Finance costs
Six months Six months Year to
to to 31 March
30 September 30 September
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Interest on bank loans 339 200 510
Amortisation of debts issue costs 52 30 58
Interest on Hire Purchase and similar agreements 51 38 100
--------------- --------------- ---------
442 268 668
--------------- --------------- ---------
9. Earnings Per Ordinary Share
The earnings per Ordinary share have been calculated in
accordance with IAS 33 using the profit for the period and the
weighted average number of Ordinary shares in issue during the
period as follow:
Six months Six months Year to
to to 31 March
30 September 30 September
2023 2022 2023
Unaudited Unaudited Audited
Profit/(Loss) the year after taxation 109 (1,777) (783)
Exceptional administrative costs 94 1,319 1,533
Share based payments 12 17 16
Tax effect of adjustments (24) (251) (291)
------------------------ ------------- ------------
Adjusted Profit/(Loss) after taxation 191 (692) 475
------------------------ ------------- ------------
No. '000 No. '000 No. '000
50,004 50,004 50,004
Number of Ordinary shares of 1p each
Basic weighted average number of Ordinary shares
of 1p each 50,004 50,004 50,004
Diluted weighted average number of Ordinary
shares of 1p each 50,004 50,004 50,004
------------------------ ------------- ------------
Basic earnings/(loss) per share 0.22p (3.55p) (1.57p)
Diluted earnings/(loss) per share 0.22p (3.55p) (1.57p)
Adjust for effects of: Exceptional costs 0.14p 2.14p 2.48p
Share based payments 0.02p 0.03p 0.03p
Adjusted basic earnings/(loss) per share 0.38p (1.37p) 0.95p
Adjusted diluted earnings/(loss) per share 0.38p (1.37p) 0.95p
10. Intangible a ssets
Goodwill Intellectual Customer Development Software Total
property Relationships Costs
Cost GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March 2022 10,417 1,920 100 22,153 1,807 36,397
Additions - Internal
development - - - 1,282 - 1,282
Additions - External
purchases - - - 165 8 173
-------- ------------ -------------- ----------- -------- --------
As at 30 September
2022 10,417 1,920 100 23,600 1,815 37,852
Additions - Internal
development - - - 1,038 - 1,038
Additions - External
purchases - - - 173 4 177
-------- ------------ -------------- ----------- -------- --------
As at 31 March 2023 10,417 1,920 100 24,811 1,819 39,067
Additions - Internal
development - - - 1,011 - 1,011
Additions - External
purchases - - - 91 - 91
-------- ------------ -------------- ----------- -------- --------
As at 30 September
2023 10,417 1,920 100 25,913 1,819 40,169
-------- ------------ -------------- ----------- -------- --------
Amortisation
As at 31 March 2022 - 1,920 100 9,917 1,448 13,385
Charge for period - - - 1,085 105 1,190
-------- ------------ -------------- ----------- -------- --------
As at 30 September
2022 - 1,920 100 11,002 1,553 14,575
Charge for period - - - 1,040 70 1,110
-------- ------------ -------------- ----------- -------- --------
As at 31 March 2023 - 1,920 100 12,042 1,623 15,685
Charge for period - - - 1,053 34 1,087
-------- ------------ -------------- ----------- -------- --------
As at 30 September
2023 - 1,920 100 13,095 1,657 16,772
-------- ------------ -------------- ----------- -------- --------
Net book amount
As at 30 September
2023 10,417 - - 12,818 162 23,397
-------- ------------ -------------- ----------- -------- --------
As at 31 March 2023 10,417 - - 12,769 196 23,382
-------- ------------ -------------- ----------- -------- --------
As at 30 September
2022 10,417 - - 12,598 262 23,277
-------- ------------ -------------- ----------- -------- --------
As at 31 March 2022 10,417 - - 12,236 359 23,012
-------- ------------ -------------- ----------- -------- --------
11. Right of use assets
Furniture,
fixtures
Leased and Computer Motor vehicles
buildings equipment equipment Software Total
COST GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 March 2022 2,098 551 406 612 - 3,667
Additions - - - - - -
Disposals - - - - - -
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2022 2,098 551 406 612 - 3,667
Additions - 32 96 91 - 219
Disposals - - - (96) - (96)
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 31 March 2023 2,098 583 502 607 - 3,790
Additions - - 214 308 - 522
Disposals - - - (358) - (358)
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2023 2,098 583 716 557 - 3,954
-------------------- -------------------- ------------ ---------------- ---------- -------
AMORTISATION
As at 31 March 2022 794 194 234 413 - 1,635
Charge for period 133 35 36 77 - 281
Disposals - - - - - -
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2022 927 229 270 490 - 1,916
Charge for period 132 35 37 55 - 259
Disposals - - - (96) - (96)
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 31 March 2023 1,059 264 307 449 - 2,079
Charge for period 115 36 40 48 - 239
Disposals - - (358) - (358)
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2023 1,174 300 347 139 - 1,960
-------------------- -------------------- ------------ ---------------- ---------- -------
Net book amount
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2023 924 283 369 418 - 1,994
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 31 March 2023 1,039 319 195 158 - 1,711
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 30 September
2022 1,171 322 136 122 - 1,751
-------------------- -------------------- ------------ ---------------- ---------- -------
As at 31 March 2022 1,304 357 172 199 - 2,032
-------------------- -------------------- ------------ ---------------- ---------- -------
12. Borrowings
As at 30 September As at September As at 31 March
2023 2022 2023
-------------------- -------------------- --------------------
Current Non-current Current Non-current Current Non-Current
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Borrowings 4,273 213 897 4,602 1,031 3,861
Convertible unsecured loan
note 1,574 - - 1,574 - 1,574
Right of use liability 557 1,273 487 1,258 466 1,113
------- ----------- ------- ----------- ------- -----------
Totals 6,404 1,486 1,384 7,434 1,497 6,548
------- ----------- ------- ----------- ------- -----------
All borrowings are held in sterling and the Directors consider
their carrying amount approximates to their fair values. Borrowings
comprise of the following loans:
A GBP5.3m term loan with HSBC. The loan is secured by a fixed
and floating charge on all the assets of the Group. It is repayable
by 17 monthly instalments from 30 March 2023 of GBP86,000 and a
final repayment of the outstanding balance on 31 July 2024 and
bears interest at a floating rate of 5.1% over base rate. As at 30
September 2023 the Group owed GBP3.9m (March-23: GBP4.1m).
A GBP0.5m overdraft facility with HSBC. The overdraft facility
bears an interest rate of 5.3% over LIBOR on the drawn amount. As
at 30 September 2023 the Group had not used this overdraft
facility.
A GBP1.5m growth capital loan with MEIF WM Debt LP. The loan
bears a fixed interest rate of 8% per annum and is repayable in 15
quarterly instalments commencing 30 September 2021. The loan is
secured by a secondary fixed and floating charge on all the assets
of the Group. As at 30 September 2023 the Group owed GBP590K
(March-23: GBP975K).
A GBP1.6m convertible unsecured loan note. The loan bears a
fixed interest rate of 12% per annum, with a two-year term from its
issue date 14 September 2022. The interest is payable quarterly
from issue date until repayment on 13 September 2024. The Loan Note
is convertible at a conversion price of 17.10p, a ten percent
discount to the closing mid-market price of a Trakm8 ordinary share
on 13 September 2022, the last practicable date prior to its
completion.
The Group's obligations under right of use assets are secured by
the lessors' title to the leased assets. Obligations under right of
use assets by category at 30 September 2023 were as follows:
Furniture,
Freehold fixtures Computer Motor
property and equipment equipment vehicles Software Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Current 238 25 143 146 7 559
Non-current 791 13 195 272 0 1271
------------- ---------------------- ------------ ---------- ---------- --------
Total 1,029 38 338 418 7 1,830
------------- ---------------------- ------------ ---------- ---------- --------
The maturity of obligations under right of use assets as at 30
September 2023 were as follows:
Furniture,
Freehold fixtures Computer
property and equipment equipment Motor vehicles Software Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Within 1 year 238 25 143 146 7 559
1 to 2 years 246 9 96 147 - 498
2 to 5 years 380 4 99 125 - 608
More than 5 years 165 - - - - 165
------------- -------------- ------------ ---------------- ---------- -------
Total 1,029 38 338 418 7 1,830
------------- -------------- ------------ ---------------- ---------- -------
13. Share Capital
As at September 2023 As at 30 September As at 31 March
A 2022 2023
-------------------- ------------------ -----------------------
No's No's No's
000's GBP'000 000's GBP'000 000's GBP'000
Authorised:
Ordinary shares of 1p each 200,000 2,000 200,000 2,000 200,000 2,000
Allotted, issued and fully paid:
Ordinary shares of 1p each 50,004 500 50,004 500 50,004 500
Movement in share capital: GBP'000
As at 1 April 2022 500
As at 30 September 2022 500
As at 31 March 2023 500
As at 30 September 2023 500
The Company currently holds 29,000 Ordinary shares in treasury
representing 0.06% (March-22: 0.06%) of the Company's issued share
capital. The number of 1 pence Ordinary shares that the Company has
in issue less the total number of Treasury shares is
49,975,002.
14. Cash Generated from Operations
Six months
to Six months to Year to
30 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net profit/(loss) before taxation 13 (2,413) (1,243)
Depreciation 381 384 767
(Profit)/Loss on disposal of fixed
assets 209 88 222
Net bank and other interest 429 239 618
Exceptional costs 94 1,319 1,533
Amortisation of intangible asset 1,087 1,190 2,300
Exchange movements (15) 2 9
Share based payments 12 17 16
------------- --------------- ---------
Operating cash flows before movement
in working capital 2,210 826 4,222
Movement in inventories (387) (30) (1,104)
Movement in trade and other receivables 1,590 774 19
Movement in trade and other payables (1,018) 1,133 1,877
Movement in provisions 21 21 101
------------- --------------- ---------
Cash generated from operations before
exceptional costs 2,416 2,724 5,115
Cash outflow from exceptional costs (94) (1,319) (1,533)
------------- --------------- ---------
Cash generated from operations 2,322 1,405 3,582
Interest received 13 29 50
Income taxes received 14 1 682
------------- --------------- ---------
Net cash-inflow from operating activities 2,349 1,435 4,314
------------- --------------- ---------
Income taxes received are in relation to funds received in relation to
Research and Development activities.
15. Further Copies
This statement, full text of the Stock Exchange announcement and
the results presentation can be found on the Group's website
www.trakm8.com and also from the registered office of Trakm8
Holdings PLC. The address of the registered office is: Roman Way,
Roman Park, Coleshill, North Warwickshire, B46 1HG.
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END
IR KXLFLXFLLFBK
(END) Dow Jones Newswires
November 24, 2023 02:00 ET (07:00 GMT)
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