Quartix Holdings PLC Trading Statement (6788M)
10 January 2019 - 6:00PM
UK Regulatory
TIDMQTX
RNS Number : 6788M
Quartix Holdings PLC
10 January 2019
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,
is pleased to provide an update on trading for the year ended 31
December 2018 and to report that it will publish results for the
year ended 31 December 2018 on Monday 25 February 2019. The
results, together with accompanying presentations, will be posted
that morning on the Company's website at
www.quartix.net/investors.
The Board is pleased to report that it expects revenue, profit
and free cashflow to be in line with the trading update provided by
the Company on 4 December 2018 and with the current market
forecasts*. The Company achieved strong levels of free cashflow and
expects to pay a supplementary dividend alongside the final
ordinary dividend, in keeping with its previously announced
dividend policy. The Company further expects results for 2019 also
to be in-line with the most recent market forecasts
The Company made excellent progress in its core fleet business
in the USA and France during 2018: new installations were 66% and
76% ahead of the same period last year, respectively. The
subscription base in the USA increased by 46% to 13,100 vehicles,
and in France the base grew by 43% to 18,800 vehicles.
The Company noted at the half-year point that growth in the UK
subscription base had slowed in relation to the equivalent period
for 2017 but is now pleased to report that the internal process and
structural changes made since July are beginning to take effect.
The UK subscription base grew by 10% over the year to 91,200
vehicles. New installations were 18,580 units and although this
lags last year's result by 6% it marks a considerable improvement
in performance in the second half of the year.
New installations of fleet tracking systems in all territories
were considerably stronger in the final quarter than they were in
2017 and the Company is focused on maintaining this momentum in
2019.
As noted in the trading statement of 27 March 2018 and again at
the time of the interim results, installations in the insurance
business have been lower that they were in 2017 as the Company
continues with its policy of only adding new insurance business if
the quality of the service and product innovation offered are
appropriately valued. In total 41,255 units were installed in 2018,
representing a 29% decline compared to 2017. Volumes in this sector
are expected to decline further in 2019, in line with current
market expectations.
Quartix has continued to invest in its software and telematics
technology, having introduced a significant update to its web and
mobile-based applications in late October. These enhancements
facilitate the implementation of additional languages within its
telematics applications. This multi-lingual support, together with
the TCSV12 OBD self-install device, provide a platform for future
expansion into wider European markets without the need for any
local recruitment. The Company is encouraged to note that the
self-install products launched during 2018 have made good progress
in all regions.
Andy Walters, Chief Executive Officer of Quartix, commented: "We
finished the year with a strong level of new fleet business in all
territories and are delighted with the progress made in 2018
overall. Growth in international markets was excellent and the
Company's fleet subscription base grew by 17% to 123,000 vehicles.
We also completed some exciting new technology developments during
the year and look forward to 2019 with confidence."
Footnote:
* The Board believes that consensus market expectations for
2018, prior to this announcement, were as follows: Revenue:
GBP25.3m; Adjusted EBITDA: GBP8.3m; Free Cash Flow: GBP5.5m.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information, please contact:
Quartix (www.quartix.net)
Andrew Walters, Chief Executive
Daniel Mendis, 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 Leftley 020 7894 7000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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