Insurance market instability hits fleet manager hard
Telematics and data insight firm Trakm8 has seen revenues heavily impacted by the insurance capacity market, with more than £5m of estimated revenue lost.
Group revenue decreased by 20% to £16.1m (FY2023: £20.2m) following a challenging period in the insurance market which is recovering slower than Trakm8 anticipated.
Headquartered in Coleshill near Birmingham alongside its manufacturing facility, the Group supplies the Fleet, Optimisation, Insurance and Automotive sectors to many well-known customers in the UK and internationally including the AA, Stark, EON, Iceland Foods, Sainsbury’s, GSF, Direct Line Group, Ticker and Freedom Group.
Insurance and Automotive revenues fell by 25% to £6.6m (FY2023: £8.7m) with new device sales and policy renewals impacted. This meant that recurring revenues remained static at £3.3m as connections fell to 212,000 from 279,000 the prior year.
Fleet software revenues are down by £1.5m with a significant contract award expected for the FY2025.
The contract would have enabled the fleet management firm to meet market expectations if it was secured last financial year.
Trakm8’s board says that it is confident that it will improve results for FY-2025 for revenue and profit, but results remain uncertain due to the speed of the insurance market recovery.
Jon Watkins, executive chairman of Trakm8 said: “Our focus remains on our core strategies which should continue to improve our financial position after several years of unavoidable headwinds. The trading conditions, particularly within insurance, mean the results for the coming financial year remain uncertain but the Board is confident of improving revenues and levels of profitability from recent years.”
