Interim report
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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 30 Sept 2021 Unaudited 6 months to 30 Sept 2020 Unaudited Year to 31 March 2021 Change Audited £ 000 £ 000 £ 000 Revenue of which , recurring revenue¹ 9,021 7,321 15,961 + 23 % 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 : о 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 о Backlog of driving tests expected to diminish in FY2023 , improving demand ○ Strong level of orders , post period , from existing and new Fleet customers