Trakm8 insurance revenues remain 'depressed'

19th Sep 2024 10:54

(Sharecast News) - Telematics business Trakm8 warned on Thursday that improvements in its insurance business had taken "longer than originally anticipated" but noted fleet and optimisation revenues were slightly better than expected.

Trakm8 said fleet and optimisation revenues were "considerably ahead" of the comparable period in the previous year, with strong software sales due to contract extensions.

However, it also said insurance revenues continue to be "depressed" due to the slower rate of capacity being restored to its customers and the running down of high levels of inventory that customers have been carrying.

"Trading conditions, particularly within the insurance market, means that the results for the current full financial year continue to remain uncertain, but the board is confident of improving revenues and levels of profitability from recent years," said chairman John Watkins.

The AIM-listed group noted that for the balance of the current financial year, although it believes the performance of its insurance business to "improve gradually" over the coming months, it now thinks this will take longer than originally anticipated to occur.

As of 1050 BST, Trakm8 shares were down 8.57% at 6.40p.

Reporting by Iain Gilbert at Sharecast.com