Quartix Technologies LON:QTX, the Cambridge-based real time vehicle tracking technology provider published its year-end results to end-December 2024.
As previously reported, Quartix is a leading provider of vehicle tracking and telematics solutions, and the firm’s vehicle tracking system is installed in over 600,000 vehicles, which allows subscribers to track their fleet through the internet with users of the AIM-listed company’s services in the Building and Construction, Transportation, Trades, Distribution and Security sectors and allows customers to not only track vehicles but identify individual drivers and coach them on their driving, track temperatures of refrigerated vehicles and record mileages and efficiency of journeys.
The company reported an 8% increase in year-on-year group revenue to £32.4m with adjusted earnings up 21% to £6.5m. Adjusted profit before tax was up 25% to £6.3m, and post-tax profit was £4.8m a significant turnaround from the statutory loss Quartix made last year of £900,000. Bigger profits led to an increase in diluted EPS up from 8.75p to 9.78p and free cash flow – something that was a concern for management this time last year – was up 99% to £2.6m, a record performance.
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Quartix Technologies dividends doubled
Management doubled the dividend to 3p, with a total dividend for the year of 4.5p per share – up 1.5p per share y-o-y. Quartix opened the week (3rd March) at 175p, up 7.7% over one-year and up 14% from the beginning of the year. The company has a market cap of £76m.
Quartix, which operates primarily in the UK, France, and the US, has continued to expand its customer base while investing in technology and product development. The tech provider has, since our last report, recorded steady revenue growth, largely driven by an increase in vehicle tracking subscriptions. Quartix’s Software-as-a-Service (SaaS)-based business model continues to provide recurring revenue, ensuring financial stability. Despite macroeconomic uncertainties, the firm maintained strong profitability, with healthy cash generation supporting its balance sheet.
Management reported that disciplined cost control and strategic investments have enabled Quartix to navigate inflationary pressures while sustaining margins, which is reflected in the decision to increase dividends.
Rise in customer acquistions
Notably, Quartix experienced a rise in new customer acquisitions, particularly within the fleet management sector. The company has successfully expanded its international footprint, with France and the US emerging as key growth markets. While the UK remains its largest revenue contributor, overseas markets now represent a significant portion of total revenue.
Efforts to enhance customer retention and engagement have paid off, as evidenced by high renewal rates and growing demand for Quartix’s fleet tracking solutions. The company’s focus on improving user experience and functionality has led to increased adoption of its platform across various industries, including transportation, logistics, and construction.
Quartix has made noteworthy progress in enhancing its software and analytics capabilities. The company continues to invest in artificial intelligence and machine learning technologies to refine driver behaviour analysis, fuel efficiency insights, and predictive maintenance features.
The firm has also introduced several product enhancements aimed at improving usability and reporting accuracy. These developments align with its strategy to offer value-added services that help businesses optimize fleet operations and reduce costs.
Broadening international reach
Looking ahead, Quartix aims to strengthen its market presence by broadening its international reach and refining its product offerings. The company remains committed to innovation, with a focus on leveraging data analytics to provide deeper insights for fleet operators. Management is optimistic about sustaining growth momentum through continued investment in sales, marketing, and technology.
Despite ongoing economic uncertainties, Quartix is well-positioned to capitalise on demand for fleet management solutions, particularly as businesses seek cost-effective ways to enhance efficiency and compliance. The company’s strong balance sheet and recurring revenue model provide a stable foundation for future expansion.
Following on from a solid 2023, Quartix Technologies has delivered another year of solid performance, underpinned by strong revenue growth, customer expansion, and technological advancements. Its international presence, coupled with strategic investments in product innovation, positions the company well for sustained growth. With a positive outlook and a commitment to delivering value for customers and shareholders, Quartix remains a key player in the vehicle telematics sector.
