Listed company moves head office to Coleshill

Telematics company Trakm8 has put its pin in the map in the West Midlands as it moves its headquarters to Coleshill.

The business, which is listed on the Alternative Investment Market, has completed its relocation from Dorset. It follows the acquisition of Box in October 2013, which gave it a manufacturing site in the region.

The growth of that operation, which has doubled its staff numbers to more than 150 people, meant that having the group’s finance team still in Dorset was creating “operational inefficiencies”. The move resulted in the group appointing a new finance director, with Jon Furber replacing James Hedges, who chose not to relocate.

Trakm8’s executive chairman John Watkins said: “We had a disappointing year last year, but this year we started with a strong set of contract wins and renewals, and the ability to see some good growth.”

Revenues grew 12% to £14.8m in the six months to September, with pre-tax profits up by £444,000 to £726,000.

As Trakm8’s shares rose 6% in early trading, AJ Bell Investment Director Russ Mould said: “Fleet management specialist Trakm8’s shares surged after interim profits more than doubled. Investors were also encouraged by a bullish outlook for the second half.

“With a strong range of substantial new contracts in place, the group has visibility to support its second half expectations and the outcome for the full year is less dependent on securing contracts from new customers than in previous years.”

Trakm8 executive chairman John Watkins

“When we acquired Box in Birmingham we had quite a bit of subcontracted assembly,” said Watkins. “We have been eliminating that and concentrating on solutions. That side of the business grew 30% year-on-year.

“We are encouraged that getting out of the low margin activity is working.

“Recurring revenues were up 17%, they are high margin and sticky sales. If we can keep growing those, we are in a good place.”

Trakm8’s product portfolio includes cameras, self-installed telematics units and technology to eliminate distracted driving due to mobile phones.

It has more than 217,000 installed units reporting to its servers.