Cartrack final results February 2017

Revenue for the year rose to R1.1 billion (R1.0 billion) while gross profit increased to R0.9 billion (R0.8 billion). Operating profit improved to R0.4 billion (R0.3 billion). Profit attributable to owners was higher at R0.3 billion (R0.2 billion), Furthermore, headline earnings per share grew to 85 cents per share (81 cents per share).

Ordinary shareholders are advised that the board of directors has declared a final gross cash dividend of 35 cents per ordinary share (28 cents net of dividend withholding tax) for the year ended 28 February 2017 (the cash dividend). The cash dividend will be paid out of profits of the company.

Company outlook
The coming of age of the digital era puts the Internet of Things (IoT) and SaaS firmly in the spotlight. As a result, the telematics industry is experiencing an explosion of innovation - something that is at the heart of Cartrack's business and vital to the success thereof.

Current and future customers require ever-increasing information about their assets and people to more effectively achieve their goals. In this context, Cartrack will become a more integral part of their lives, moving away from a service provider relationship to become business partners.

This will require a continued and significant investment in technology and intellectual property, and a further expansion of Cartrack's distribution and operating capacity. Cartrack's current and expected internal cash flow generation will fund the majority of these investments, although inexpensive funding opportunities are easily accessible.

The global telematics industry is showing signs of further consolidation. Cartrack will remain vigilant to such industry developments. Opportunities that may arise to provide economies of scale as well as improved subscriber value will be considered on their merits.

The South African market remains under-penetrated. Opportunities to enter the lower LSM market and to expand the product offering in the fleet-, asset- and people tracking markets will increase sales and revenues. The order book in Europe is strong while new sales are being actively pursued. Asia Pacific is now gaining operational mass as a region, with a strong sales pipeline and many cross-border opportunities which are ready to be exploited. The Africa-Other operations will be closely monitored and managed in anticipation of a more favourable economic environment.

With all of this in mind, notwithstanding global economic and foreign exchange volatility, Cartrack expects to continue double digit subscriber- and revenue growth in the foreseeable future.

2017-05-17 09:21:14