Quartix Technologies reports 10pc rise in first-half revenue

29th Jul 2024 11:58

(Sharecast News) - Vehicle tracking systems specialist Quartix Technologies reported a 10% improvement in first-half group revenue on Monday, to £16.1m, up from £14.6m in the same period last year.

The AIM-traded firm said the growth was primarily driven by a 10% rise in fleet revenue, which accounted for £16m of the total revenue, maintaining its substantial contribution at 99.3% of overall revenue.

Adjusted EBITDA remained steady at £2.7m, consistent with the prior year.

Operating profit and profit before tax both saw a 13% increase, reaching £2.7m compared to £2.4m in the first half of 2023.

Diluted earnings per share rose to 4.49p, up from 4.16p.

Despite those gains, free cash flow decreased by 21% to £1.1m from £1.4m, which the board put down to higher tax and investing activities.

An interim dividend of 1.5p per share was proposed, unchanged from last year.

Quartix said its strategic focus remained on expanding its subscription base profitably and increasing annualised recurring revenue (ARR).

The company achieved an 11% year-on-year growth in ARR, which rose by £3.04m on a constant exchange rate basis to £30.94m as of 30 June.

"The company made very substantial progress in the first half of the year: new subscriptions increased by 13% compared to 2023 and this led to record growth in annualised recurring revenues which increased by 11% to £30.9m over the past year," said executive chairman Andrew Walters.

"Two thirds of this increase in annualised recurring revenue was achieved since 1 January.

"Remaining operating and liquidation costs associated with the Konetik acquisition were all taken in the first half and other administrative and operating costs have been well controlled during the period."

Walters said the issues the company faced in 2023 had now been put behind it, enabling it to refocus strongly on its core business and to structure for further growth.

"The board is confident in the outlook for the remainder of the year and now believes that both revenue and profit will moderately exceed market expectations.

"The company looks forward to 2025 and the future with confidence."

At 1138 BST, shares in Quartix Technologies were up 15.62% at 185p.

Reporting by Josh White for Sharecast.com.