Trakm8 (TRAK) H2 2024 earnings summary

Executive summary

• Revenue declined 20% year-over-year to £16.1m, mainly due to a challenging insurance market, with over £5m in estimated lost revenue.

• Adjusted loss before tax was £1.3m versus a profit of £0.3m last year; statutory loss before tax widened to £1.5m from £1.2m.

• Recurring revenue remained stable at £10.1m, representing 62% of total revenue.

• Net cash generated from operations improved to £6.1m (FY-2023: £4.3m), with year-end cash at £1.4m.

• Overheads reduced by £0.9m due to prior restructuring, despite inflationary pressures.

Financial highlights

• Group revenue: £16.1m (FY-2023: £20.2m); recurring revenue: £10.1m (FY-2023: £10.5m).

• Gross margin: £10.4m (FY-2023: £12.5m), with margin percentage rising to 64.6% from 61.8%.

• Loss before tax: £1.5m (FY-2023: £1.2m); adjusted loss before tax: £1.3m (FY-2023: profit £0.3m).

• Basic loss per share: (2.42p) (FY-2023: (1.57p)); adjusted basic loss per share: (2.20p) (FY-2023: 0.95p).

• Net debt reduced to £4.9m (FY-2023: £5.6m); cash at year-end £1.4m (FY-2023: £1.1m).

Outlook and guidance

• Insurance market recovery remains slower than anticipated, with ongoing capacity and pricing challenges.

• Positive start to FY-2025 for Fleet and Optimisation revenues, including expanded agreement with Iceland and contract extension with Drvn.

• Board expects improved revenue and profit in FY-2025 but notes continued uncertainty tied to insurance market recovery.