"Cash is for shareholders," says Andy Walters, chief executive of Quartix (QTX), as the vehicle tracking company doubled its annual payout. This is certainly great news for investors, given that last year the company reported free cash flow from operations of £5.4m. This has helped the group to swing from a net debt position at the end of 2014 to having £3m of net cash at the 2015 year-end, after dividends paid.
The strong financial performance was underpinned by continued growth in the group's core UK market, where revenue increased by 27 per cent. Sales in France also motored, with revenue there up 48 per cent at constant currencies.
The group completed its first full year of trading in the US - from 498 vehicles under subscription stateside at the end of the previous year, at the end of 2015 Quartix had 3,179 US vehicles monitored by its vehicle tracking devices. With US trucking legislation providing a great opportunity for the group to market its products across the pond, prospects look good there.
Analysts at FinnCap upped their forecasts and now anticipate adjusted pre-tax profits of £6.7m in 2016, giving EPS of 11.6p, compared with £6.1m and 10.7p in 2015.
| QUARTIX (QTX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 328p | MARKET VALUE: | £154m | |
| TOUCH: | 320p-335p | 12-MONTH HIGH / LOW: | 328p | 149p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 32p | NET CASH | £3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 6.7 | 1.50 | 2.7 | nil |
| 2012** | 8.3 | 2.80 | 5.2 | nil |
| 2013** | 13.2 | 4.60 | 8.3 | nil |
| 2014 | 15.3 | 5.04 | 8.7 | 3.0 |
| 2015 | 19.7 | 5.99 | 10.7 | 6.0 |
| % change | +29 | +19 | +23 | +100 |
Ex-div: 10 Mar Payment: 4 Apr *Includes intangible assets of £14m, or 30p a share **Pre-IPO figures, pro forma EPS | ||||
