Vehicle tracking device specialist Quartix (QTX) reported a healthy 5 per cent rise in revenues, although a slightly higher cost base and a continued preference for fleet contracts over insurance work meant this only translated to a 1 per cent rise in operating profits. Quartix believes prioritising fleet is the right thing to do: chief executive Andy Walters says this type of work is not only higher margin but also long term, which gives better visibility over future revenue growth and keeps attrition rates low at around 10 per cent.
Mr Walters is also keen to develop the US business this year, as the customer base continues to grow. The group just completed a third full year of trading there, ending 2017 with 1,460 fleet customers (2016: 1,075) and 8,973 vehicles under subscription (2016: 6,191). As such, US fleet revenues rose by two-thirds to $1.5m (£0.9m). This year, further investments will be made across the pond in local recruitment, product development and sales and marketing platforms.
Analysts at finnCap expect pre-tax profits of £7.4m for the year ending December 2018, giving EPS of 13.2p, compared with £7m and 12.8p in 2017.
| QUARTIX (QTX) | ||||
| ORD PRICE: | 360p | MARKET VALUE: | £171m | |
| TOUCH: | 350-370p | 12-MONTH HIGH: | 415p | LOW: 321p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 41p* | NET CASH: | £7.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 13.2 | 4.6 | 8.3 | nil |
| 2014 | 15.3 | 5.0 | 8.7 | 3.0 |
| 2015 | 19.7 | 6.0 | 10.7 | 6.0 |
| 2016 | 23.3 | 6.5 | 12.9 | 6.5 |
| 2017 | 24.5 | 6.6 | 12.3 | 6.7** |
| % change | +5 | +1 | -5 | #VALUE! |
| Ex-div: | 5 Apr | |||
| Payment: | 4 May | |||
| *Includes intangible assets of £14m, or 29p a share | ||||
| **Excludes supplementary dividend of 6.8p a share | ||||
