Trakm8 warns of up to 35% revenue slide as Brexit uncertainty delays contracts

Writer, Stock Market Wire
Monday, February 4, 2019 - 07:50

Telematics and data supplier Trakm8 Holdings warned of an up to 35% drop in annual revenue, blaming delayed orders in its fleet division owing to Brexit uncertainty.

Revenue for the year through March was expected to fall by 25-35%, the company said.

The second half, however, was expected to be profitable, and, provided the mix of revenue was as expected, a loss for the year would remain as previously anticipated, it added.

During the third quarter through December, Trakm8 said it saw a marked improvement in order volumes, which were 10% greater than the run rate of the first half.

'As Trakm8 moves into the final quarter the board expects to improve the trend of growing new orders and in turn shipments,' it said.

'During January orders amounting to circa 30,000 units were received from a wide range of new and existing customers.'

However, it added that certain fleet order opportunities continud to be delayed, rather than lost, because of the ongoing Brexit uncertainty.

On the costs front, Trakm8 said it implemented around £2m of annualised savings in the third quarter.

'The bulk of these savings will be fully effective for the start of the new financial year commencing 1st April 2019,' it said.

'The board is confident that this significantly reduced cost base and the increased revenue run rate will result in a measurable improvement in performance for financial year ending 31st March 2020.'

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