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Trakm8 Holdings PLC on Thursday said its earnings declined in the first half of its current financial year, amid ‘challenging’ conditions in the Insurance and Automotive markets. The Shaftesbury, England-based provider of fleet management software and data to insurers said pretax profit in the six months that ended September 30 tumbled 89% to £5,000 from £13,000 the year before. Shares in Trakm8 were down 30% at 4.00 pence each in London on Thursday afternoon. Revenue fell 2.4% to £8.3 million from £8.5 million last year, while total administrative costs increased 14% to £5.3 million from £4.6 million. Finance costs were up 26% to £573,000 from £442,000. Cost of sales reduced 37% to £2.4 million from £3.5 million. Chair John Watkins said: ‘The Insurance and Automotive markets continue to provide challenging forecasting conditions. The prospect of volumes of new device sales from both existing and new customers not increasing until the fourth quarter of financial 2025 means that our expectations are lower than that we had previously forecast for the Insurance and Automotive business. ‘However, our Fleet and Optimisation business is forecast to trade well with a strong pipeline of opportunities across all our solutions, including the previously highlighted Optimisation contract which remains in our sales process. We hope that this pipeline will offset the challenges within the Insurance market. ‘The outcome for the full year therefore remains uncertain, with the strength of recovery in Insurance unknown. However, the board remains confident of improving revenues compared to the prior financial year.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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