The deal comes after significant investment in R&D and acquisitions.
Companies: Trakm8 Holdings PLC
After an announcement in May for an initial supply contract to an "unnamed roadside assistance technology firm", Trakm8 today have confirmed a three-year deal with Intelematics for the supply of their telematics devices and data.
Telematics is a general term that refers to any device which merges telecommunications and infomatics. It includes things like GPS systems and navigation systems.
Trakm8 will provide its latest generation "Connect 300" plug-in device and data to Intelematics' roadside assistance customers in the UK and Europe, including AA. The technology is used to monitor vehicle health and usage based on Trakm8's automotive diagnostic knowledge.
Intelematics are a world leading telematics provider, operating in the UK, Europe, North America as well as Australia.
Shares jumped 5% in this morning's trading with the news.
finnCap's morning note mentioned the deal, saying it helps underpin their revenue and earnings forecasts, which expect a 20% growth in sales in 2018 and PBT to more than double between 2017 and 2018.
The Company's PE ratio currently sits just shy of 10x compared to an industry median of 13x, while revenue has grown over 400% in the five years to 2017. Net profit grew substantially in the four years to 2016 but stabilised in 2017 as the group invested heavily in acquisitions and further R&D.