Quartix Holdings PLC Trading Statement (9940I)
27 March 2018 - 5:00PM
UK Regulatory
TIDMQTX
RNS Number : 9940I
Quartix Holdings PLC
27 March 2018
Quartix Holdings plc
("Quartix" or the "Company")
Trading Statement
Quartix Holdings plc, one of Europe's leading suppliers of
subscription-based vehicle tracking systems, software and services,
issues the following trading statement ahead of its Annual General
Meeting today.
The Board reports that trading for the two-month period to 28
February 2018 was in line to deliver management's expectations for
the full year.
The Company has made excellent progress in its core fleet
business in the USA and France since the start of the year: new
installations in those countries in the first quarter are expected
to have been more than 60% ahead of the same period last year. In
the USA this has resulted from the actions taken to strengthen the
sales organisation and to invest in sales management systems and
marketing automation linked to a new website. In France the strong
growth is attributable to further sales team development,
enhancement of the Company's indirect sales channels and better use
of price comparison sites.
The Company will continue to invest in the development of its
fleet business and remains confident of the potential in this
sector. Current investments include initiatives such as the
roll-out of the sales and marketing automation platform developed
for the USA market to its French and UK operations as well as new
product, market and channel developments aimed at the longer-term
growth prospects for this sector. It is also considering ways in
which additional investment in these initiatives could lead to
faster growth.
In recent weeks the Company has become aware of increased
pricing pressure in the insurance telematics market generally and
that some telematics suppliers are now offering levels of pricing
which it believes are at, or close to, the cost of service
delivery. The Company's position remains that it will not pursue
business which does not properly value the level of service and
unique technology it offers, such as its SafeSpeed Database. It
also continues to believe that the potential for both growth and
profitability in this sector remain limited by the characteristics
of the end-user market. As such, unless market conditions change,
the Board anticipates that its volume of business in this sector
will decline further.
The Board does not expect this development to have a material
impact on its H1 results. It believes, however, that there is
likely to be a decline in its insurance volumes in the second half
which could lead to Group revenue for the year being comparable
with that of 2017. The corresponding impact on free cash flow
against market estimates* is expected to be proportionately
greater, although profit for the year is expected to remain in line
with market expectations*. Given the trends being seen in the
insurance sector, the Board anticipates that there could then be a
further decline in 2019 insurance revenue.
* The Board believes that consensus market expectations for
2018, prior to this announcement, were as follows: Revenue:
GBP26.10m; Adjusted EBITDA GBP7.55m; Free Cash Flow: GBP6.35m.
For further information, please contact:
Quartix (www.quartix.net)
Andy Walters, Chief Executive
Officer
Daniel Mandis, Chief Financial
Officer 01686 806 663
finnCap (Nominated Adviser
and Broker)
Matt Goode / Scott Mathieson
(Corporate Finance)
Alice Lane (Corporate Broking) 020 7220 0500
Cantor Fitzgerald (Joint Broker)
Marc Milmo
Catherine Leftly 020 7894 7000
About Quartix
Founded in 2001, Quartix is a leading supplier of
subscription-based vehicle tracking systems, software and services.
The Group provides an integrated tracking and telematics data
analysis solution for fleets of commercial vehicles and "pay as you
drive" motor insurance providers that is designed to improve
productivity and lower costs by capturing, analysing and reporting
vehicle and driver data.
Quartix is based in the UK and is listed on the AIM market of
the London Stock Exchange (AIM:QTX).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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