Fleet management firm now optimistic after profit warning
Coleshill telematics and data insight firm Trakm8 has secured an extension to its loan with HSBC as it awaits for insurance capacity to increase.
Another year has been added to the £5.3m loan on the same terms to July 2025 and Trakm8 will not make capital repayments until October 2024. The outstanding balance on the loan currently sits at £3.6m.
Trakm8’s telematics cameras and devices track fleets for clients including Autoglass, Eon, Iceland and Altrad. The software gives companies and insurers insight into a range of areas, from route optimisation and fuel expenditure to vehicle health and driver behaviour.
Trakm8 says that insurance capacity has now been restored to the group’s largest insurance customer and its board believes shipments into the insurance market are expected to recover this month.
An IP has also been purchased for £500k from Action 365, a Freedom Services Group Company under a software licence agreement. The technology is set to complement Trakm8’s existing extensive risk management and driver profiling capabilities including accident detection.
Under a separate agreement with Freedom, Trakm8 has agreed to a supply contract extension for four years. Freedom has committed to purchase a minimum of 90% of its onboard diagnostics and 12v devices and related services from Trakm8.
Trakm8 has now embarked on a £900k fundraising to generate funds required to purchase the IP and increase working capacity to meet volume increases from both the supply agreement extension and the driver scoring algorithms.
Directors of the firm will subscribe to the 2024 loan notes: John Watkins £275k; Nadeem Raza £100k; and Jon Edwards £25k.
Previous loan notes of £1.58m issued in 2022 were due for repayment in September 2024 but all holders have agreed that the repayment period can be extended by another year.
The board believes that these agreements will provide increased certainty in this year’s financial results and beyond.
John Watkins, Trakm8’s Executive Chairman, said: “We are delighted to extend our partnership with Freedom and to increase our capability in Insuretech services. We also thank the subscribers to the 2024 Loan Notes who are not directors of the Company in helping to facilitate this.”
