Telematics company on the road to break-even

X The Business Desk

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Telematics and data firm Trakm8 expects to break even this year despite additional costs caused by the industry’s supply chain problems.

As it approaches the halfway point of its financial year, the Coleshill-headquartered firm is forecasting annual revenues of £19m.

Executive chairman John Watkins will tell the company’s AGM later today about the positive start to the year.

He will say: “Revenues in the first five months of the current financial year commencing 1 April 2021 have been 19% more than the same period last year.

“Overall, connections have increased by 1% to 257,000 since the start of the year. During the period a number of new Insurance and Fleet customers were secured and several of our large customers renewed their contracts.”

Trakm8 expects the second half of the year will benefit from the growth in connections and recurring revenues in both its Fleet and Insurance divisions.

It says it has “not been immune” to the widely-reported supply chain challenges but “have managed to avoid any disruptions to our supply to customers”.

Watkins added: “There has been a return to a more normal Fleet attrition rate and with the increased deployment of new solutions the number of Fleet connections has increased by 3% (2,000) to 72,000.

“Although the return of the insurance telematics market following third Covid-19 lockdown has been weaker than the corresponding rate of return after the first Covid-19 lockdown, our combined insurance and connected car proposition has performed solidly. There has been a 1% increase (1,000) in Insurance & Automotive connections to 185,000.”