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Trakm8 Holdings shares fall as product decline continues

The company expects that 2018/19 will be the end of the year-on-year decline in product revenues
shares fell
Trakm8 achieved 26% growth at its Solutions business

Trakm8 Holdings PLC (LON:TRAK) shares fell as it reported product revenues will fall by a further £2mln in the current year.

The AIM-listed telematics firm said sales rose by 13% to £30mln in the year to March just ended, which included a £2.2mln decline in product revenues to £3.1mln following the decision to exit contract manufacturing.

READ: Trakm8 down again as it announces discounted placing

The fact that this year will also be affected knocked the shares even though Trakm8 said 2018/19 will mark the end of the disruption.

Elsewhere, solutions saw 26% growth to £26.9mln, while the number of connections increased by 31% to 251,000 from 191,000.

Recurring revenue during the period increased by 11% to £10.9mln

John Watkins, executive chairman of Trakm8, said he was pleased with the headline revenue growth, which was achieved despite the strategic decision to exit from sub-contract manufacturing. 

In early morning trading, company’s shares fell 9% to 93p.

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