LONDON (ShareCast) - (Sharecast News) - Telematics and data insight provider Trakm8 said on Thursday that half-year revenue is set to be "modestly ahead" of the prior year.
In an update ahead of its annual meeting, chairman John Watkins said the group's half-year adjusted loss "should be considerably lower" despite only one of the firm's four significant new insurance customers starting to deploy devices during the period.

In terms of trading, Watkins said connections were largely unchanged since the end of the financial year, with a modest increase in fleet connections and a slight reduction in insurance connections.

Assuming that Trakm8 receives a £1m research and development claim in the next few days, net debt is expected to be in the range £5.6m to £5.8m, which it said would be a very significant improvement on the previous year.

"Even if the R&D tax reclaim is not received until October, the cash outflow will be significantly reduced on the corresponding period of the previous year," Watkins said.

He said the second half of the year would see Trakm8 benefit from the commencement of shipments to its new volume insurance customers, the resumption of shipments to automotive customers and an improved sales performance across the fleet market.

Direct and indirect costs were also expected to continue to fall, delivering incremental savings over and above the £2m originally expected by the board.

As of 0840 BST, Trakm8 shares were down 1.54% at 19.20p.

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