Quartix Holdings plc (AIM:QTX), a leading supplier of vehicle tracking systems and services to the fleet and insurance sectors, is pleased to announce its unaudited results for the half year ended 30 June 2019.
Financial highlights:
- Group revenue decreased by 3% to £12.5m (2018: £12.9m)
- Fleet revenue grew by 11% to £10.1m (2018: £9.1m)
- Insurance revenue declined by 35% to £2.5m (2018: £3.8m)
- Operating profit of £3.2m (2018: £3.8m)
- Adjusted EBITDA1 of £3.5m (2018: £4.1m)
- Profit before tax of £3.2m (2018: £3.9m)
- Diluted earnings per share of 5.67p (2018: 6.86p)
- Free cash flow2 increased by 12% to £3.2m (2018: £2.8m)
- Cash generated from operations increased by 5% to £3.5m (2018: £3.3m)
- Net cash increased to £5.1m (2018: £4.9m)
- Operating cash conversion3 of 109% (2018: 86%)
- Interim dividend of 2.4p per share proposed
1 Earnings before interest, tax, depreciation, amortisation and share based payment expense (see note 3)
2 Cash flow from operations after tax and investing activities
3 Cash generated from operations of £3.5m divided by operating profit of £3.2m
Operational highlights
Fleet
Excellent progress in the main fleet business
- Subscription base grew by 12% to 138,081 vehicles (31st December 2018: 123,157)
- Annual value of subscription base increased by £1.2m to £20.0m on a constant-currency basis (6 months 30 June 2018: £0.7m to £17.7m)
- Fleet installations grew by 48% to 22,505 (6ms 30 June 2018: 15,220)
- Customer base increased by 13% to 14,851 (31st December 2018: 13,176)
- Fleet invoiced recurring revenue increased by 12% to £9.4m (6ms 30 June 2018: £8.4m)
- Attrition1 on a rolling 12-month basis was 10.5% (12 months 30 June 2018: 12.0%)
- Significant increase in marketing, sales resource, distribution, tracking systems and installation spend to drive subscription growth.
1 Attrition is calculated as the difference between the number of new unit installations and the increase in active subscriptions between 1 July 2018 and 30 June 2019, expressed as a percentage of the mean subscription base between those two points in time: (38,740-25,551)/125,305 = 10.5%
UK
- New fleet installations increased by 49% to 13,360 units (6 months June 2018: 8,990)
- 99,055 active vehicle subscriptions, up 9% (31 December 2018: 91,137)
- 9,431 customers, up 9% (31 December 2018: 8,675)
France
- New fleet installations increased by 58% to 4,465 (6 months June 2018: 2,820)
- 22,440 active vehicle subscriptions, up 19% (31 December 2018: 18,803)
- 2,967 customers, up 20% (31 December 2018: 2,474)
Other European (Ireland, Poland, Spain)
- 482 active vehicle subscriptions
- 121 customers
USA
- New fleet installations increased by 28% to 4,365 units (6 months June 2018: 3,400)
- 16,104 active vehicle subscriptions, up 23% (31 December 2018: 13,133)
- 2,332 customers, up 16% (31 December 2018: 2,007)
Insurance
- Insurance installations declined by 29% at 17,069 (6 months June 2018: 23,969).
- Insurance revenue declined by £1.3m (35%) to £2.5m (6 months June 2018: £3.8m).
Andy Walters, Chief Executive Officer of Quartix, commented:
“We are delighted with the expansion of our fleet subscription base in the First Half, which resulted from an increased level of investment in customer acquisition. New fleet installations grew by 48% compared with the same period last year. We also invested in R&D, business systems and new market development, having successfully launched our telematics services in Poland and Spain.
We are well positioned for future growth in our fleet business and continue to review the opportunities to invest in this further. We remain confident of at least meeting expectations for revenue, profit and cashflow for the year.”
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