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Trakm8 Holdings PLC

Telematics group Trakm8 blasts sales team as it swings to a loss

“The Fleet Management sales team simply failed to win enough business to meet our expectations”

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A drop in market share for a key insurance customer also affected Trakm8

Telematics and vehicle tracking group Trakm8 Holdings PLC (LON:TRAK) has blasted its sales team after it swung to a loss last year.

Losses totalled £3.6mln in the 12 months ended 31 March 2019, down from a small profit of £0.5mln a year earlier.

READ: Trakm8 hits the skids as Brexit-related delays take chunk out of revenue

The drop in profitability came amid a plunge in revenue, which fell 35% to £19.1mln (2018: £29.4mln).

Much of the fall was as a result of its major customer losing market share in the young driver insurance market, meaning it required fewer telematics boxes.

But the fleet management business, which tracks cars and can stop them from going into certain areas, also struggled, and Trakm8 was upfront about the reasons why.

“The Fleet Management sales team simply failed to win enough business to meet our expectations.”

Looking ahead, bosses are being “prudent” with their forecasts, although they expect a “relatively modest recovery” in revenues – low double-digit growth – with a small adjusted profit.

Shares were down 20% to 18p in late-morning trading, valuing the company at £9mln.

Quick facts: Trakm8 Holdings PLC

Price: 15.5 GBX

Market: AIM
Market Cap: £7.75 m
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