Trakm8 Holdings PLC on Monday said it expects further job cuts amid a move to a second data centre, as it reported a fall in revenue due to a slow recovery in the insurance market.

Trakm8 provides fleet management software and data to insurers.

The Shaftesbury, England-based company reported weaker annual results and warned of an ‘uncertain’ new year.

Trakm8 said revenue fell 20% to £16.1 million in the financial year that ended March 31 from £20.2 million the year before. The company cited a heavy impact from the insurance capacity market, with over £5 million of estimated revenue lost.

Its pretax loss stretched to £1.5 million from £1.2 million.

Trakm8 said its number of jobs will be reduced with a move to a second data centre. ‘We have continued to control overheads across the business as we seek to drive the group to profitability. Overall payroll, contractor and associated staff costs were £500,000 lower than the prior year with a further £200,000 saving in Marketing spend,’ the firm said.

‘We have continued to make progress on becoming more efficient and cost effective. The key project being progressed during the year being our exit from cloud solutions to a more cost effective on premise second data centre.’

Trakm8 shares were down 17% to 7.04 pence each early Monday afternoon in London.

Looking ahead, the company cautioned that the insurance market recovery is ‘slower than anticipated with capacity and pricing challenges continuing for some customers’.

Trakm8 is confident earnings in financial 2025 will improve, but the insurance market recovery means it is still ‘uncertain’. For Fleet revenue, it noted a ‘positive’ start, citing an expanded agreement with Iceland.

For the insurance sector, Trakm8 produces telematics devices, which have the ability to track vehicle driver behaviour.

The company proposed no dividend, unchanged from a year ago.

Copyright 2024 Alliance News Ltd. All Rights Reserved.