The company said trading in the first five months of the year commencing April 1 has been behind that of the same period a year ago. It said the decline reflected the termination of £1.6mln in contract electronics manufacturing (CEM) work last year and the working down of launch stocks by one of its major customers.
A significant insurance customer has also cancelled telematics policies, offsetting new policy sales.
In the second half, Trakm8 said results will benefit from the resumption of volume shipments to the significant customer and increased momentum in the fleet management market.
“The directors are also confident that new contracts to be awarded, particularly in the insurance space, will drive additional revenues in the second half of the year,” said executive chairman John Watkins.
He added: "The board is pleased to report that the outlook for the year ending 31 March 2019 is in line with market expectations, with an improved financial performance driven by continued growth in the telematics business more than offsetting the eliminated CEM activities.”
Shares fell 4.05% to 71p in morning trading.