Cartrack continues growth streak

28th May 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Data analytics solutions provider Cartrack on Tuesday reported another solid set of results for its financial year ended February 28, marking the company’s sixth year of consecutive double-digit growth in companywide, as well as subscription, revenue.

Subscription revenue as a percentage of total revenue reached peak levels of 90% during the period under review, the company pointed out.

Founder and CEO Zak Calisto said Cartrack was “equally excited” about the continued revenue growth and the adoption of its advanced fleet management platform by a number of large corporate fleets in Asia Pacific and mainland Europe during the financial year.

In South Africa, the company’s audited recovery rate of 92% at year-end demonstrated the quality of the company’s security technology used for the recovery of stolen vehicles, he noted.

Total revenue increased by 28% to almost R1.7-billion on the back of robust subscriber growth to 960 798 subscribers and a strong performance across its key growth metrics.

Net subscriber additions, meanwhile, grew by 39% from 150 770 in 2018 to 209 418.

Cartrack’s subscription revenue level of 90% of total revenue, represented a 30% increase in subscription revenue to R1.5-billion.

Moreover, despite a significant increase in investments to grow distribution capacity amid headwinds in the local economy, the company’s earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by 17% to R761-million during the period.

Cash generated from operating activities remained strong, increasing by 16% to R544-million.

The high return on equity of 50% and the return on assets of 28% indicate that capital was efficiently applied across the group, Calisto said, adding that Cartrack‘s business model delivered attractive returns on capital employed for its shareholders.

During the year, Cartrack invested into back-office business systems with the aim of improving the operational and financial control environment. This, Calisto explained during a presentation on Tuesday, would drive efficiency as well as allow for economies of scale.

The company is planning to continue investing in its future growth through upgrades to proprietary customer-centric platforms that will enhance operational efficiencies.

Moreover, he averred that the group continued to maintain a strong pipeline and order book while focusing on maximising is distribution footprint.

“Cartrack is gathering significant momentum in its efforts to capitalise on the increase in the global trends of artificial intelligence and data analytics and tangible results are already becoming evident from these efforts,” Calisto said.

As the company continues to focus on a “highly underpenetrated market”, Cartrack’s goal is to provide its customers and partners with real-time, actionable business intelligence, based on advanced technology and reliable data.

NEW APPOINTMENTS

Cartrack’s global management capacity was also bolstered during the year under review with the appointment of a chief information officer, Jesse Young.

Young’s appointment makes room for a strategic split of the COO role at Cartrack, into a focused operational delivery and production innovation function headed up by Richard Schubert, Calisto said.

Additionally, Cartrack’s “pool of industry experience” continues to expand with the appointment of Harry Louw as CEO of the South African region, and Brendan Horan in the role of chief strategy officer and investor relations.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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