Trakm8 shares decline sharply as it posts loss

The share price of shares in AIM-listed Trakm8 Holdings (LON:TRAK) has fallen by 13.11% to 19.55p (as of 13:30 BST) after it reported a 35% drop in revenues for the year ended 31st March. The company posted a pre-tax loss for the year of £3.6 million, seven times larger than its profit in the prior year.

Executive Chairman John Watkins commented: “We continue to drive efficiencies and maintain product enhancements, and we are aiming to focus on a smaller number of activities and execute them much better. The bulk of the available resource and energy is focused on marketing and selling.

“Our Fleet sales team’s performance is continuing to improve, securing a higher value of contracts than the corresponding period last year with this momentum expected to continue. This and the new contract awards from two further insurance companies is expected to deliver growth in the first half of this financial year compared to the first half last year.

“The AA Smart Breakdown launch and the two major new insurance contract wins are expected to provide a lift to revenues in the second half of the financial year. As many Fleet deals take some time to deploy the good recent progress in contract wins will impact the second half more than the first half, so this too makes the expected trading performance of the group to be more significantly second half loaded than ideal.

“Trading to date confirm the realisation of operational and efficiency cost savings of £2.0m that were actioned in the prior financial year.

“Given the disappointing failure to predict the outcome last year, it is prudent to be tempered in our outlook but current market expectations are for a relatively modest recovery (low double digit growth) in our revenues and very modest adjusted profitability for the financial year as a whole. The Board is confident that this will be achieved“.