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Date: Monday 02 Jul 2012

Trakm8, the AIM-listed GPRS technology group, saw revenues rise by a quarter in the year ended March 31st 2012 and said that it is confident of further growth in the coming year.

Revenue increased from £4.19m to £5.22m year-on-year, helped by strong growth in its Telematics hardware division, which saw sales increase from £1.39m to £2.23m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) slumped from £0.59m to £0.36m but the prior year’s results included £0.4m of government grants. Stripping out these, adjusted EBITDA improved from £0.23m to £0.35m. The gross profit margin edged lower from 66.6% to 63.7%.

"We have a strong balance sheet with substantial cash reserves and minimal debt. The market for vehicle telematics in the UK is still very fragmented and should opportunities emerge for us to grow by making acquisitions then we will seriously consider them,” said Chief Executive Officer John Watkins.

The group said that revenues will continue to improve over the next twelve months with results expected to be in line with market expectations. “Cost reduction initiatives and innovative product launches undertaken during the downturn, have left us well positioned for future growth,” Watkins said.

Analysts at finnCap said this morning: “The telematics market is showing growth and within that Trakm8 has become a leading supplier, with a swathe of impressive contracts and customers.

“The quality of its client base and its work with government agencies reflects Trakm8’s reputation in an industry which has seen some fly-by-night operators. It has shown it has the scale and quality to deliver at the highest levels.”



Medical diagnostics group Omega Diagnostics posted a strong set of full year results which saw turnover rise 41 per cent and gross profit leap 49 per cent.

Pre-tax profits came in at £0.48m (2011: £0.12m) on revenues of £11.1m, compared with £7.9m the previous year. Earning per share rose from 0.1p to 0.6p year-on-year.

Divisionally, Allergy and Autoimmune revenue was up 191% to £4.48m (2011: £1.54m), Food Intolerance revenue rose 10% to £3.90m (2011: £3.56m) and Infectious disease/other revenue declined 2.0% to £2.75m (2011: £2.80m).

Net cash generated from operations during the year was £0.69m (2011: £0.35m), while cash at year end was £1.16m (2011: £2.05m), which the company said reflected iSYS development expenditure. Net debt at the period end was £0.1m (2011: net cash of £0.45m).

David Evans, Chairman, said: "As the group looks to build on its progress to date, it is clear that to achieve significant year-on-year growth we either need to increase the level of automation for customers or to provide POC tests to provide solutions for unmet needs in developing markets.

"From a market perspective, a focus on the growing BRIC countries is expected to yield above average results. In particular, I believe the opportunity with CD4, which will commercially launch in July, offers the group an ability to create significant strategic value based on the responses we have had to date from major global organisations."

"The outlook for the new financial year is very encouraging with good growth potential across all segments of the business. The addition of the new test technologies licensed in from the Burnet Institute should allow us to make a major impact in Global Health markets as these tests satisfy a current unmet clinical demand.

"While there continues to be difficulties in the Eurozone countries, we believe our robust and diversified business model, BRIC-focused strategy and focus on new products not affected by these issues hold us in good stead for continued and profitable growth."

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