RNS Number : 4551S
Trakm8 Holdings PLC
16 November 2021
 

16 November 2021

TRAKM8 HOLDINGS PLC

("Trakm8" or the "Group")

Half Year Results and Director Change

Trakm8 Holdings plc (AIM: TRAK), the global telematics and data insight provider, announces its unaudited results for the six months ended 30 September 2021:

Financial Highlights

 


6 months to

6 months to

Year to 31

Change


30 Sept 2021

30 Sept 2020

March 2021



Unaudited

Unaudited

Audited



£000

£000

£000


Revenue

9,021

7,321

15,961

+23%

of which, recurring revenue1

4,806

4,635

9,379

+4%

Profit/(Loss) before tax

47

(845)

(1,867)

+106%

Adjusted Profit/(Loss) before tax2

444

(314)

(342)

+241%

Profit/(Loss) after tax

273

(732)

(1,237)

+137%

Cash generated from operations

868

2,055

4,737

-58%

Net Debt3

6,157

5,574

4,887

+10%

Basic earnings per share

0.13p

(1.46p)

(2.47p)

+108%

Adjusted basic earnings per share

0.81p

(0.56p)

0.07p

+244%

1 Recurring revenues are generated from ongoing service and maintenance fees

2 Before exceptional costs and share based payments

3. Total borrowings less cash excluding IFRS 16 adjustment for leased property and motor vehicles

 

Operational Overview

·      H1 2021 results:

23% growth in revenues

Return to profitability

Gross margins improved due to higher proportion of software revenues

Underlying overheads benefitting from previous years' actions

Reduced cash generation from operations despite significant reduction in losses, as PAYE & VAT time to pay arrangements were met

 

·      Continuation of new contract wins:

New telematics contract awards with a wide range of smaller Fleet and Insurance customers

Approximately 255,000 connections (March 2021: 254,000 connections), an increase of 1,000 connections, (0.4%) in the six month period since last year end.

 

·      Continuation of contract renewals:

Strong period of contract renewals in the Fleet business.

 

·      H2 and FY2023 outlook:

Insurance telematics policy sales plateau due to high backlog of driving tests and cost of second hand cars only modestly improving due to new insurance clients' launches

Several new Insurance customers launching during H2 but mainly impact FY2023 and beyond

Backlog of driving tests expected to diminish in FY2023, improving demand

Strong level of orders, post period, from existing and new Fleet customers

 

 

Outlook

Despite additional costs associated with mitigating supply chain challenges and expected significant component price increases, the Board remains confident that for the full year ending 31st March 2022, the Group will be slightly ahead of current market expectations on all profit measures. It is expected that this will be achieved on lower than previously expected revenues of circa £18m due to softening of the telematics insurance market.

 

- Ends -

 

For further information:

Trakm8 Holdings plc


John Watkins, Executive Chairman

Tel: +44 (0) 167 543 4200

Jon Edwards, CFO

www.trakm8.com

 


Arden Partners plc (Nominated Adviser & Broker)

Tel: +44 (0) 20 7614 5900

Paul Shackleton, Head of Corporate Finance

Simon Johnson, Head of Sales

www.arden-partners.com

 



 

About Trakm8

 

Trakm8 is a UK based technology leader in fleet management, insurance telematics, connected car, and optimisation. Through IP owned technology, the Group uses AI data analytics collected from its installed base of telematics units to fine tune the algorithms that are used to produce its' solutions; these monitor driver behaviour, identify crash events and monitor vehicle health to provide actionable insights to continuously improve the security and operational efficiency of both company fleets and private drivers.

 

The Group's product portfolio includes the latest data analytics and reporting portal (Trakm8 Insight), integrated telematics/cameras/optimisation, self-installed telematics units and one of the widest ranges of installed telematics devices. Trakm8 has over 255,000 connections.

 

Headquartered in Coleshill near Birmingham alongside its manufacturing facility, the Group supplies to the Fleet, Optimisation, Insurance and Automotive sectors to many well-known customers in the UK and internationally including the AA, Saint Gobain, EON, Iceland Foods, Parts Alliance, Direct Line Group, ByMiles and Ingenie.

 

Trakm8 has been listed on the AIM market of the London Stock Exchange since 2005. Trakm8 is also recognised with the LSE Green Economy Mark.

 

www.trakm8.com / @Trakm8

 



 

Executive Chairman's Statement

Results

I am pleased to report Trakm8's results for the six months ended 30 September 2021.

The first half of the financial year was a significant improvement on the previous year and ahead of recent Company guidance. Revenues for the six months ending 30 September 2021 increased by 23% over the corresponding period of the previous year to £9.02m.

There was an increase of £1.29m (29%) in Fleet and Optimisation revenues to £5.7m and an increase in Insurance and Automotive revenues of £0.41m (14%) to £3.31m.

The Group is reporting a significant improvement in trading with a return to profitability with Group adjusted profit of £0.44m (2020: loss £0.31m), Profit before Tax of £0.05m (2020: Loss £0.85) and Profit after Tax of £0.27m (2020: loss £0.73m).

During the period, connections increased by 0.5% to 255,000 (31.3.2021: 254,000). Fleet connections were static at 70,000 (31.3.21: 70,000), Insurance & Automotive connections increased 0.7% to 185,000 (31.3.21: 184,000).

In the last few months of the period we saw a recovery in the fleet numbers but there has been little recovery in the insurance market as difficulties with new drivers taking tests and the increased cost of second hand cars.

The Recurring Revenues in the period increased over the previous year by 4% to £4.81m and represent 53% of Group revenues. In addition, the Group generated £0.98m of software revenues (H1 2020: £0.30m), which represent 11% of Group revenues.

The Group has incurred £0.13m in additional costs to mitigate the impact of Covid-19 on the electronic component supply chain but has maintained supplies to customers without significant interruptions. In the last few months we have seen significant price increases in certain components and we expect this to continue for the balance of the year. We have worked hard to avoid disruption of our supply chain but there remains an ever present risk.

Gross profit margin has improved to 65% (2020: 62%). This is despite the higher hardware revenues as a percentage of sales and the impact of Covid-19. The improvement in margin is due to higher software sales during the period.

Total overhead costs, excluding exceptional costs, increased by £0.47m to £5.27m (H1 2020: £4.80m).  This is the result of £0.16m increase in depreciation & amortisation, a £0.15m increase in marketing spend and reduced furlough support of £0.38m.  Underlying payroll costs further reduced overall by £0.16m. Exceptional costs reduced significantly during the period to £0.30m, and included furloughed employees costs of £0.20m net of £0.18m Government payments and £0.11m of other costs. Share based payments remained consistent compared to the previous year at £0.91m (H1 2020: £0.89m)

Financial position

Cash generation from operations has been £0.87m (H1 FY-2020: £2.06m) and at 30 September 2021 the Group net debt excluding the impact of the IFRS16 lease liability was £6.16m (£7.88m including IFRS 16 liability) which is £1.27m higher than as at 31 March 2021. The HMRC time to pay liability reduced by £0.94m. H1 FY21 benefitted from agreeing with the Revenue authorities to delay payments of £0.7m into FY22 and FY23. At the 30 September 2021 the Group had £0.89m of cash on hand and a further £0.50m of available funds under an overdraft facility.

The overall cash outflow for the period was £1.48m (H1 2020: outflow of £0.12m). 

 

 

Strategy

The Group has been following the strategy outlined in the 2021 Annual Report. Our focus is to provide ever more meaningful insights to our customers using the data generated by our installed devices and other connections so that they can run their operations more efficiently and safely.

Our primary strategy going forward is the growth of our business through more connections, increased device sales and higher service fees. Due to the high level of new contract wins across the business and reduced rates of attrition in Fleet, the number of connections have increased overall by 0.8% in the past 12 months and by 0.4% in past 6 months. The number of devices sold has increased by 30% to 64,000 (H1 2020: 49,000).

Trakm8 has focused on delivering market leading technology and ensuring that the solutions are generating the best possible ROI's for our customers. We have maintained the levels of expenditure in R&D. We will continue to own the majority of IP in our value chain. We have focused on building out greater functionality of existing solutions rather than a wider range. We have focused on using AI to maximise value in our algorithms in risk, crash and video analysis. We have obtained very exciting results from this and are receiving positive interest from customers as a result.

Our third strategy has been to improve the efficiencies of our business in every possible way. We have been successful in maintaining similar operating overheads level like for like before the impact of the furlough support, despite salary inflation and higher marketing costs. We will continue to seek efficiencies as we go forward.

Director Resignation

Peter Mansfield, Trakm8 Group Sales and Marketing Director, has resigned from the Board of Directors with immediate effect. Paul Wilson who had previously been Group Sales and Marketing Director will be assuming responsibilities for Fleet Sales and Marketing.

JOHN WATKINS

Executive Chairman

 

 

 

 

 



 

 

Unaudited Consolidated Statement of Comprehensive Income for the six months to 30 September 2021

 









 






Six months to 30 September

Six months to 30 September

Year to
31 March

 






2021

2020

2021

 






Unaudited

Unaudited

Audited

 






£'000

£'000

£'000

 



Note




 









 

Revenue




3

             9,021

           7,321

 15,961

 

Cost of sales





(3,177)

(2,804)

(6,643)

 

Gross profit





             5,844

           4,517

       9,318

 









 

Other income




4

                 13

             103

          194

 









 



(5,262)

(4,800)

(9,585)

 

Exceptional administrative costs




7

(306)

(442)

(1,342)

 

Total administrative costs





(5,568)

(5,242)

(10,927)

 









 

Operating profit/(loss)





               289

(622)

(1,415)

 









 

Finance income





                 32

               39

            78

 

Finance costs




8

(274)

(262)

(530)

 









 

Profit/(Loss) before taxation





                 47

(845)

(1,867)

 









 

Income tax





                 226

             113

          630

 









 

Profit/(Loss) for the period





                 273

(732)

(1,237)

 









 

Other Comprehensive Income








 

Items that may be subsequently reclassified to profit or loss:






 

Exchange differences on translation of foreign operations



                   4

                 5

(3)

 

Total other comprehensive income




                   4

                 5

(3)

 









 

Total Comprehensive Profit/(Loss) for the period attributable to owners of the parent


5

                 277

(727)

(1,240)

 









 

 

Profit/(Loss) before taxation




6

                 47

(845)

(1,867)

 

Exceptional administrative costs





               306

             442

     1,342

 

IFRS2 Share based payments charge




                 91

               89

          183

 

Adjusted profit/(loss) before tax





               444

(314)

(342)

 









 

Earnings per ordinary share (pence) attributable to owners of the Parent



 









 

Basic




9

              0.55

(1.46)

(2.47)

 

Diluted




9

              0.55

(1.46)

(2.47)

 









 









 

The results relate to continuing operations.















 

 

 



 

Unaudited Consolidated Statement of Changes in Equity for the six months to 30 September 2021










Share capital

Share premium

Merger  reserve

Translation reserve

Treasury  reserve

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000









Balance as at 1 April 2020

         500

     14,691

       1,138

          196

(4)

           4,658

 21,179









Comprehensive income








Loss for the period

             -

              -

              -

              -

                    -

(732)

(732)

Other comprehensive income








Exchange differences on translation of overseas operations

             -

              -

              -

             5

                    -

 -

             5

Total comprehensive income

             -

              -

              -

             5

                    -

(732)

(727)









Transactions with owners








IFRS 2 Share-based payments

             -

              -

              -

              -

                    -

               89

        89

Transactions with owners

           -  

            -  

              -

              -

                    -

               89

        89

Balance as at 30 Sept 2020

         500

     14,691

       1,138

          201

(4)

           4,015

 20,541









Comprehensive income








Loss for the period

             -

              -

              -

              -

                    -

(505)

(505)

Other comprehensive income








Exchange differences on translation of overseas operations

             -

              -

              -

(8)

                    -

 -

(8)

Total comprehensive income

             -

              -

              -

(8)

                    -

(505)

(513)









Transactions with owners








IFRS2 Share-based payments

             -

              -

              -

              -

                    -

               94

        94

Transactions with owners

           -  

            -  

              -

              -

                    -

               94

        94

Balance as at 31 March 2021

         500

     14,691

       1,138

          193

(4)

           3,604

 20,122









Comprehensive income








Profit for the period

             -

              -

              -

              -

                    -

              273

     273

Other comprehensive income








Exchange differences on translation of overseas operations

             -

              -

              -

             4

                    -

 -

             4

Total comprehensive income

             -

              -

              -

             4

                    -

               273

277









Transactions with owners








IFRS2 Share based payments

             -

              -

              -

              -

                    -

               91

        91

Transactions with owners

           -  

            -  

              -

              -

                    -

               91

        91

Balance as at 30 Sept 2021

         500

     14,691

       1,138

          197

(4)

           3,968

20,490

 

 

 

 

                                                

 

Unaudited Consolidated Statement of Financial Position as at 30 September 2021














As at 30 September

As at 30 September

As at 31 March






2021

2020

2021





Note

Unaudited

Unaudited

 Audited






£'000

£'000

£'000









Non-current assets








Intangible assets




10

           22,568

          22,230

     22,187

Plant, property and equipment





               911

              831

          891

Right of use assets




11

             2,187

            2,838

       2,512

Deferred income tax asset





                  -  

                 -  

              -

Amounts receivable under finance leases




                 39

                65

            50






           25,705

          25,964

     25,640

Current assets








Inventories





             1,368

            1,701

       1,409

Trade and other receivables





             7,301

            7,171

       6,679

Corporation tax receivable





               1

              317

          690

Cash and cash equivalents





               888

            1,541

       2,370






             9,558

          10,730

     11,148

Current liabilities








Trade and other payables





(5,339)

(5,574)

(5,417)

Borrowings




12

(1,140)

(5,417)

(855)

Right of use liability




12

(708)

(679)

(680)

Provisions





                  -  

(26)

(27)






(7,187)

(11,696)

(6,979)









Current assets less current liabilities




             2,371

(966)

       4,169

Total assets less current liabilities





           28,076

          24,998

     29,809









Non-current liabilities








Trade and other payables





(474)

(593)

(1,546)

Borrowings




12

(5,386)

(1,231)

(5,815)

Right of use liability




12

(1,459)

(1,941)

(1,767)

Provisions





(151)

(179)

(190)

Deferred income tax liability





(116)

(513)

(369)






(7,586)

(4,457)

(9,687)









Net assets





           20,490

          20,541

     20,122









Equity








Share capital




13

               500

              500

          500

Share premium





           14,691

          14,691

     14,691

Merger reserve





             1,138

            1,138

       1,138

Translation reserve





               197

              201

          193

Treasury reserve





(4)

(4)

(4)

Retained earnings





             3,968

            4,015

       3,604

Total equity attributable to owners of the parent



           20,490

          20,541

     20,122

 

 

 

                                         

 

Unaudited Consolidated Cash Flow Statement for the six months to 30 September 2021














Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021





Note

Unaudited

Unaudited

Audited






£'000

£'000

£'000









Net cash generated from operating activities


14

               868

            2,055

       4,737









Cash flows from investing activities







Purchases of property, plant and equipment




(230)

(183)

(330)

Purchases of software





(2)

(24)

(47)

Capitalised Development costs





(1,396)

(1,220)

(2,290)

Net cash used in investing activities




(1,628)

(1,427)

(2,667)









Cash flows from financing activities







New bank loan





                     -

                     -

       5,300

Loan arrangement fees





                     -

                     -

(86)

Repayment of bank loans





(168)

(171)

(5,379)

Repayment of obligations under lease agreements



(280)

(344)

(670)

Interest paid





(274)

(237)

(530)

Net cash generated from financing activities




(722)

(752)

(1,365)









Net (decrease)/increase in cash and cash equivalents



(1,482)

(124)

          705









Cash and cash equivalents at beginning of period



             2,370

            1,665

       1,665









Cash and cash equivalents at end of period




               888

            1,541

       2,370

















 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements









1.     Basis of preparation
















The Group's interim results for the 6 months to 30 September 2021 (prior year 30 September 2020) were approved by the Board of Directors on 15 November 2021.









As permitted this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore is not fully in compliance with IFRS. 









Trakm8 Holdings PLC ("Trakm8") is a public limited company incorporated in the United Kingdom under the Companies Act 2006.  Trakm8 is domiciled in the United Kingdom and its ordinary shares are traded on AIM, the market operated by the London Stock Exchange plc.









The accounting policies adopted in the preparation of the interim financial statement are the same as those set out in the Group's annual financial statements for the year ended 31 March 2021. The financial statements have been prepared on the historical cost basis except for certain liabilities and share based payment liabilities which are measured at fair value.









The interim financial statements have not been audited or reviewed by Group's auditors pursuant to the Auditing Practice Board guidance on 'Review of Interim Financial Information' and do not include all of the information required for full annual financial statements.









The financial information contained in this report is condensed and does not constitute statutory accounts of the Group within the meaning of Section 434(3) of the Companies Act 2006. Statutory accounts for the year ended 31 March 2021 have been delivered to the Registrar of Companies. The audit report of those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.









Going concern
























2.     Risks and uncertainties
















The Board has considered the principal risks and uncertainties for the remaining half of the financial year and determined that the risk presented in the 31 March 2021 Annual Report, described as follows, also remain relevant to the rest of the financial year: Significant operational system failure; Cyber-attack and data security; Operating in a fast-moving technology industry where we will always be at risk from new products being launched; Adverse mobile network changes; Attracting and maintaining high-quality employees; Access to long term and working capital; Electronic supply chain materially impacted by Covid-19 and Rate of economic recovery post Covid-19. These are detailed on pages 18 to 20 of the 2021 Annual Report, a copy of which is available on the Group's website at www.trakm8.com.

 









3.     Segmental Analysis
















The chief operating decision maker ("CODM") is identified as the Board. It continues to define all the Group's trading under the single Integrated Telematics Technology segment and therefore review the results of the group as a whole.  Consequently all of the Group's revenue, expenses, assets and liabilities are in respect of one Integrated Telematics Technology segment. 









The Board as the CODM review the revenue streams of Integrated Fleet, Optimisation, Insurance and Automotive Solutions (Solutions) as part of their internal reporting. Solutions represents the sale of the Group's full vehicle telematics and optimisation services, engineering services, professional services and mapping solutions to customers.









A breakdown of revenue within these streams are as follows:


Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000

Solutions:





9,021

7,321

15,961

Fleet and optimisation





5,712

4,419

9,520

Insurance and automotive





3,309

2,902

6,441

Notes To The Unaudited Consolidated Financial Statements









4.     Other income













Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Grant income





13

103

194






13

103

194









5.     Profit/(Loss) per ordinary share attributable to the owners of the parent
















Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Profit/(Loss) attributable to the owners of the parent



                 277

(727)

(1,240)









6.    Adjusted profit/(loss) before tax















Adjusted Profit/(Loss) Before Tax is monitored by the Board and measured as follows:











Profit/(Loss) Before Tax





                 47

(845)

(1,867)

Exceptional administrative costs





               306

              442

       1,342

Share based payments





                 91

                89

          183

Adjusted profit/(loss) before tax





               444

(314)

(342)









7.     Exceptional costs





















Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Integration and restructuring costs



45

97

168

Covid-19 costs





446

891

2,109

Furlough grant income





(185)

(546)

(935)






306

442

1,342









The integration and restructuring costs in the current year relate to an ongoing project to streamline and rationalise the operations of the business.

 

The Group has also incurred exceptional costs relating to the Covid-19 pandemic.  These costs mainly relate to the cost of employees whilst on furlough £385,000 (Mar-21: £1,607,000, Sep-20: £767,000).

 

Furlough grant income relates to other income received from the Coronavirus Job Retention Scheme for employees furloughed as a result of Covid-19.

 

Detailed explanation of prior year exceptional costs are detailed on page 60 of the 2021 Annual Report, a copy of which is available on the Group's website at www.trakm8.com.

 

 

Notes To The Unaudited Consolidated Financial Statements

 

8.      Finance costs













Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Interest on bank loans





198

191

373

Amortisation of debts issue costs





24

21

37

Interest on Hire Purchase and similar agreements



52

50

120






274

262

530









9.      Earnings Per Ordinary Share















The earnings per Ordinary share have been calculated in accordance with IAS 33 using the profit for the period and the weighted average number of Ordinary shares in issue during the period as follow:














Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited









Profit/(Loss) the year after taxation





                 273

(732)

(1,237)

Exceptional administrative costs





               306

              442

       1,342

Share based payments





                 91

                89

          183

Tax effect of adjustments





(58)

(84)

(255)

Adjusted profit/(loss) after taxation




               612

(285)

            33














No.

No.

No.






'000

'000

'000

Number of Ordinary shares of 1p each




50,004

50,004

50,004









Basic weighted average number of Ordinary shares of 1p each


50,004

50,004

50,004

Diluted weighted average number of Ordinary shares of 1p each


50,079

50,004

50,004









Basic earnings/(loss) per share





0.55p

(1.46p)

(2.47p)

Diluted earnings/(loss) per share





0.55p

(1.46p)

(2.47p)









Adjust for effects of:








Exceptional costs





0.50p

0.72p

2.17p

Share based payments





0.18p

0.18p

0.37p









Adjusted basic earnings/(loss) per share




1.22p

(0.56p)

0.07p

Adjusted diluted earnings/(loss) per share


1.22p

(0.56p)

0.07p

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements









10.      Intangible Assets










Goodwill

Intellectual property

Customer Relationships

Development costs

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Cost








As at 31 March 2020


10,417

1,920

100

17,190

1,903

31,530

Additions - Internal development


-

-

-

1,200

-

1,200

Additions - External purchases


-

-

-

20

24

44

As at 30 September 2020


10,417

1,920

100

18,410

1,927

32,774

Additions - Internal development


-

-

-

919

-

919

Additions - External purchases


-

-

-

151

23

174

Impairments


-

-

-

-

(155)

(155)

Disposals


-

-

-

(238)

(36)

(274)

As at 31 March 2021


10,417

1,920

100

19,242

1,759

33,438

Additions - Internal development


-

-

-

1,214

-

1,214

Additions - External purchases


-

-

-

182

2

184

As at 30 September 2021


10,417

1,920

100

20,638

1,761

34,836

Amortisation








As at 31 March 2020


-

1,910

100

6,479

1,044

9,533

Charge for period


-

10

-

867

134

1,011

As at 30 September 2020


-

1,920

100

7,346

1,178

10,544

Charge for period


-

-

-

866

115

981

Disposals


-

-

-

(238)

(36)

(274)

As at 31 March 2021


-

1,920

100

7,974

1,257

11,251

Charge for period


-

-

-

924

93

1,017

As at 30 September 2021


-

1,920

100

8,898

1,350

12,268









Net book amount








As at 30 September 2021


10,417

-

-

11,740

411

22,568









As at 31 March 2021


10,417

-

-

11,268

502

22,187









As at 30 September 2020


10,417

-

-

11,064

749

22,230









As at 31 March 2020


10,417

10

-

10,711

859

21,997









 

 

 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements









11.      Right of use assets










Leased buildings

Furniture, fixtures and equipment

Computer equipment

Motor vehicles

Software

Total

COST


£'000

£'000

£'000

£'000

£'000

£'000

As at 1 April 2020


2,098

509

175

619

153

3,554

Additions


-

-

76

79

-

155

Disposals


-

-

-

(10)

-

(10)

As at 30 September 2020 


2,098

509

251

688

153

3,699

Additions


-

42

99

-

-

141

Impairments


-

-

-

-

(153)

(153)

Disposals


-

-

-

(73)

-

(73)

As at 31 March 2021


2,098

551

350

615

-

3,614

Additions


-

-

-

-

-

-

Disposals


-

-

-

(25)

-

(25)

As at 30 September 2021


2,098

551

350

590

-

3,589









AMORTISATION








As at 1 April 2020


264

49

62

175

-

550

Charge for period


132

46

16

117

-

311

Disposals


-

-

-

-

-

-

As at 30 September 2020 


396

95

78

292

-

861

Charge for period


133

29

42

110

-

314

Disposals


-

-

-

(73)

-

(73)

As at 31 March 2021


529

124

120

329

-

1,102

Charge for period


133

35

57

100

-

325

Disposals


-

-

-

(25)

-

(25)

As at 30 September 2021 


662

159

177

404

-

1,402









Net book amount
















As at 30 September 2021


1,436

392

173

186

-

2,187









As at 31 March 2021


1,569

427

230

286

-

2,512









As at 30 September 2020


1,702

414

173

396

153

2,838









As at 31 March 2020


1,834

460

113

444

153

3,004









 

 

 

 

 

 

 

 

 

Notes To The Unaudited Consolidated Financial Statements









12.      Borrowings










As at 30 September 2021

As at 30 September
2020

As at 31 March
2021



Current

Non-Current

Current

Non-Current

Current

Non-Current



£'000

£'000

£'000

£'000

£'000

£'000

Borrowings


1,140

5,386

5,417

1,231

855

5,815

Right of use liability


708

1,459

679

1,941

680

1,767

Totals


1,848

6,845

6,096

3,172

1,535

7,582









All borrowings are held in sterling and the Directors consider their carrying amount approximates to their fair values.










Borrowings comprise of the following loans: 







A £5.3m term loan with HSBC.  The loan is secured by a fixed and floating charge on all the assets of the Group. It is repayable by 22 monthly instalments from 30 September 2021 of £86,000 and a final repayment of the outstanding balance on 31 October 2023 and bears interest at a floating rate of 5.1% over base rate. As at 30 September 2021 the Group owed £5.2m (March-21: £5.3m).









A £0.5m overdraft facility with HSBC. The overdraft facility bears an interest rate of 5.3% over LIBOR on the drawn amount. As at 30 September 2021 the Group had not used this overdraft facility.









A £1.5m growth capital loan with MEIF WM Debt LP. The loan bears a fixed interest rate of 8% per annum and is repayable in 15 quarterly instalments commencing 30 September 2021. The loan is secured by a secondary fixed and floating charge on all the assets of the Group. As at 30 September 2021 the Group owed £1.4m (March-21: £1.5m).









The Group's obligations under right of use assets are secured by the lessors' title to the leased assets.










Obligations under right of use assets by category at 30 September 2021 were as follows:

 





Freehold property

Furniture, fixtures and equipment

Computer equipment

 Motor vehicles

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Current


296

90

109

147

66

708

Non-current


1,235

70

85

42

27

1,459

Total


1,531

160

194

189

93

2,167









The maturity of obligations under right of use assets as at 30 September 2021 were as follows:





Freehold property

Furniture, fixtures and equipment

Computer equipment

Motor vehicles

Software

Total



£'000

£'000

£'000

£'000

£'000

£'000

Within 1 year


296

90

109

147

                66

          708

1 to 2 years


280

66

63

42

                27

          478

2 to 5 years


750

4

22

0

                 -  

          776

More than 5 years


205

-

-

-

-

          205

Total


1,531

160

194

189

93

2,167

 

                            

Notes To The Unaudited Consolidated Financial Statements

 









 

13.      Share Capital








 



As at 30 September 2021

As at 30 September 2020

As at 31 March
2021

 



No's


No's


No's


 



000's

£'000

000's

£'000

000's

£'000

 

Authorised:








 

Ordinary shares of 1p each


200,000

200,000

200,000

200,000

200,000

200,000

 

Allotted, issued and fully paid:








 

Ordinary shares of 1p each


50,004

500

50,004

500

50,004

500

 









 

Movement in share capital:







£'000

 









 

As at 1 April 2020







500

 

As at 30 September 2020







500

 

As at 31 March 2021







500

 

As at 30 September 2021







500

 









 

The Company currently holds 29,000 Ordinary shares in treasury representing 0.06% (Mar-21: 0.06%) of the Company's issued share capital. The number of 1 pence Ordinary shares that the Company has in issue less the total number of Treasury shares is 49,975,002.

 

 

14.      Cash Generated from Operations




















Six months to

Six months to

Year to






30 September

30 September

31 March






2021

2020

2021






Unaudited

Unaudited

Audited






£'000

£'000

£'000









Net profit/(loss) before taxation





                 47

(845)

(1,867)

Depreciation





               535

380

781

Loss on disposal of fixed assets





                  -  

-

318

Amortisation of intangible assets





             1,017

1,011

1,992

Exchange movements





                   4

-

(3)

Interest received





(32)

(39)

(78)

Bank and other interest charges





               298

262

565

Share based payments





                 91

89

183

Operating cash flows before movement in working capital


             1,960

858

1,891









Movement in inventories





                 41

342

634

Movement in trade and other receivables




(611)

659

1,166

Movement in trade and other payables




(1,150)

(726)

70

Movement in provisions





(66)

21

33

Cash generated from operations





               174

1,154

3,794









Interest received





                 32

39

78

Income taxes received





               662

862

865

Net cash-inflow from operating activities




               868

2,055

4,737









15.      Further Copies

 

This statement, full text of the Stock Exchange announcement and the results presentation can be found on the Group's website www.trakm8.com and also from the registered office of Trakm8 Holdings PLC.  The address of the registered office is: 4 Roman Park, Roman Way, Coleshill, North Warwickshire, B46 1HG.

 

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END
 
 
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