Trakm8 Holdings sees H1 pretax profit tumble

Trakm8 Holdings has recorded an H1 pretax profit of £0.3m, down from £1.2m. Revenue totalled £13.2m, from £11.7m.

Separately, the company said it has been awarded a contract by Smart Driver Club (SDC), the innovative UK vehicle services company, to supply devices and data services for the launch of its Smartbubble service solution. Referring to the H1 results, chairman John Watkins said:

"Trakm8 has had another period of growth from existing and new customers. The installed base of devices reporting to our servers continues to increase and these growing recurring revenues are the core of Trakm8's business model and financial security.

"First half profitability has been impacted as expected due to the Group's seasonality and by significantly increased investment in sales, marketing and engineering.

"The outcome for the full year remains subject to the timing and quantum of contract opportunities as well as the impact of exchange rate movements.

"Strong delivery of our near term pipeline would deliver revenues and profits in line with current expectations, although there is a downside risk that if contracts drift into the next financial year profits would be broadly in line with last year on higher revenues.

"Subsequent years are expected to benefit from recent investments in growth initiatives and the growth of the telematics market."