Quartix Technologies (QTX) Status Update summary

Business overview and market focus

• Provides vehicle tracking solutions for SMEs, targeting service-based businesses where vehicles are used by non-professional drivers such as tradespeople.

• Operates a subscription-based model, with all intellectual property developed in-house.

• Expanded internationally, now serving over 310,000 vehicles, with 60% of customers outside the UK.

• Focused on optimizing workforce efficiency rather than vehicle logistics.

Recent challenges and strategic refocus

• Business lost momentum and focus, particularly in the UK and US, leading to declining customer bases and slower acquisition.

• Acquired a loss-making German business, which was liquidated after being deemed to have no value.

• Leadership changes included a new PLC board and renewed focus on core business.

Financial performance and growth

• Achieved 8.4% revenue growth and 12.2% ARR growth last year, with ARR seen as the key forward indicator.

• Net revenue retention improved to 96.3%, with record levels of new business and ARR reaching £32.2 million.

• Price increases contributed to growth, with a 5% rise this year and further increases planned.

• Free cash flow doubled last year, with £1.3 million generated in Q1 2024.