QUARTIX TECHNOLOGIES PLC Interim Financial Statements Quartix Technologies plc
For the half year ended 30 June 2022
The unaudited interim results to 30 June 2022 for Quartix Technologies plc are set out below:
Statement of Directors' responsibilities
The Directors are responsible for preparing the interim financial report, in accordance with applicable law and regulations.
As permitted, this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting".
These interim financial statements do not include all the information required in annual financial statements in accordance with IFRS and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2021.
By order of the Board of Directors on 26 July 2022.
Richard Lilwall
Chief Executive Officer
Company No.06395159
Quartix Technologies plc | 1 |
Financial statements for the half year ended 30 June 2022 | |
Contents | |
Page | |
Highlights | 2 |
Chairman's Statement | 5 |
Consolidated statement of Comprehensive Income | 8 |
Consolidated Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Consolidated Statement of Cash flows | 11 |
Notes to the Consolidated Financial Statements (unaudited) | 12 |
Company information | 18 |
Quartix Technologies plc | 2 |
Financial statements for the half year ended 30 June 2022 |
Highlights
Quartix is one of Europe's leading suppliers of vehicle telematics services and driver analytics.
Financial highlights
- Group revenue increased by 6.7% to £13.3m (2021: £12.5m)
- Adjusted EBITDA1 decreased by 6.4% to £2.5m (2021: £2.7m) driven by a 25.9% growth in new installations and established policy of immediately expensing these costs
- Category contribution and investment:
- Telematics Services category contribution2 increased by 11.2% to £10.5m (2021: £9.4m) o Customer Acquisition category investment3 increased by 16.6% to £4.7m (2021: £4.0m)
- Operating profit increased by 17.4% to £2.4m (2021: £2.1m)
- Profit before tax increased by 17.0% to £2.4m (2021: £2.1m)
- Diluted earnings per share of 4.17p (2021: 3.66p)
- Free cash flow4 increased by 31.1% to £1.9m (2021: £1.4m)
- Interim dividend of 1.50p per share proposed (2021: 1.50p)
- Earnings before interest, tax, depreciation, amortization and share based payment expense (see note 5)
- Contribution before customer acquisition costs and central costs (see note 4)
- Sales, marketing, net equipment, net installation and carriage cost for new customers (see note 4 for full explanation)
- Cash flow from operations after tax and investing activities
Principal activities and performance measures
The Group's main strategic objective is to grow its subscription base and develop the associated annualised recurring revenue.
Annualised recurring revenue has moved back into double-digit growth, increasing by 11.3% year on year (see definition in KPI table below). Annualised recurring revenue is a forward-looking key performance measure and it is pleasing that it grew by £2.7m on a constant exchange rate to £26.0m at 30 June 2022, compared to 30 June 2021.
The Key Performance Indicators and the Segmental Analysis used by the Board to assess the performance of the business are listed below and discussed in the Chairman's Statement.
Quartix Technologies plc | 3 |
Financial statements for the half year ended 30 June 2022 |
Principal activities and performance measures (continued)
Key Performance Indicators ("KPIs") | |||
Period ended 30 June | 2022 | 2021 | % change |
Fleet subscriptions1 (new units) | |||
32,085 | 25,493 | 25.9 | |
Annualised recurring revenue2 (£'000) | 26,039 | 23,387 | 11.3 |
Fleet subscription base3 (units) | 221,800 | 188,155 | 17.9 |
Fleet customer base4 | 24,408 | 20,698 | 17.9 |
Fleet attrition (annualised)5 (%) | 11.6 | 12.3 | |
Price erosion6 (%) | 5.6 | 6.5 |
- New vehicle tracking unit subscriptions added to the subscription base in 6 months to 30 June before any attrition
- Annualised data services revenue for the subscription base at 30 June, before deferred revenue, including revenue for units waiting to be installed for which subscription payments have already started or are committed, with comparative June 2021 measured at a constant exchange rate.
- The number of vehicle tracking units subscribed to the Group's fleet tracking services, including units waiting to be installed for which subscription payments have started or are committed
- The number of customers associated with the fleet subscription base
- The number of new vehicle tracking unit subscriptions, less the increase in the subscription base, expressed as a percentage of the mean subscription base
- The decrease in average subscription price of the base expressed as a percentage of the average subscription price at June 2021, all measured at a constant exchange rate
In order to highlight the different cost structures within the business, the Group will provide additional voluntary disclosure, separating the results into two categories, see accounting policy note 2 for details.
Segmental analysis 2022 | |||
(6 months, unaudited) | Customer | Telematics | Total |
Acquisition | Services | Business | |
£'000 | £'000 | £'000 | |
Revenue | 200 | 13,133 | 13,333 |
Category costs | (4,919) | (2,660) | (7,579) |
Category (net costs)/contribution | (4,719) | 10,473 | 5,754 |
Central costs | (3,259) | ||
Adjusted EBITDA | 2,495 | ||
Quartix Technologies plc | 4 | |||
Financial statements for the half year ended 30 June 2021 | ||||
Principal activities and performance measures (continued) | ||||
Segmental analysis 2021 | ||||
(6 months, unaudited) | Customer | Telematics | Total | |
Acquisition | Services | Business | ||
£'000 | £'000 | £'000 | ||
Revenue | 131 | 12,362 | 12,493 | |
Category costs | (4,178) | (2,944) | (7,122) | |
Category (net costs)/contribution | (4,047) | 9,418 | 5,371 | |
Central costs | (2,704) | |||
Adjusted EBITDA | 2,667 | |||
The profit before central costs increased by £0.4m compared to the prior year, at £5.8m (2021: £5.4m).
The contribution from the Group's Telematics Services category, grew by £1.1m to £10.5m (2021: £9.4m), which was partially invested in organic growth by spending an additional £0.7m on new unit installation costs, marketing and sales staff in the Customer Acquisition category. Quartix's long established policy of immediately expensing the cost of new units and their installation means that strong growth in new units causes a short term reduction in profitability. This is followed by increased profits due to the recurring nature of revenues.
Central costs have increased by £0.6m to £3.3m (2021: £2.7m) as a result of the new Executive Directors employment costs and the investment in operational processes and IT to support scalability in the business.
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Quartix Technologies plc published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 06:11:08 UTC.
