Telematics company reports growth after focusing on core business

Warwickshire-based telematics company Trakm8 announces 26% growth in its core business, Solutions, to £26.9m over the past year.

This is despite the company facing a year-on-year reduction of £2.2m after exiting the contract electronic manufacturing business to focus on the manufacture of hardware devices for the fleet, insurance and automotive markets. The board expects that 2018/19 will mark the end of this year-on-year decline in product revenues.

Recurring revenue over the past 12 months increased by 11% to £10.9m, and year-end net debt reduced by £0.5m to £3.4m.  Over this time, the group has won new contracts and extensions, including new contracts with a global vehicle leasing company and Truline, part of the EVO Group of Companies, and an expanded contract with Scottish Power.

Trakm8 moved its headquarters to Coleshill in November last year, and relocated from Dorset. This followed the acquisition of Box in October 2013, which gave it a manufacturing site in the region. The growth of that operation doubled its staff numbers to more than 150 people.

John Watkins, executive chairman of Trakm8, said: “Following a strong performance in the first half of the current financial year, I am pleased to report continued progress with headline double digit revenue growth achieved despite our strategic decision to exit from sub-contract manufacturing.

“Importantly, underlying Solutions revenue increased by over 25% and we have continued to focus on improving efficiencies in all aspects of our business, whilst continuing to invest in engineering, sales and marketing.

“Given the successful mix of new contract awards, increased sales and marketing investment and robust demand from our existing customers, the board anticipates that we will maintain positive momentum in revenue generation in our core Telematics Solutions business as the market continues to be rich in opportunities.  We view the future of Trakm8 with much optimism.”

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