Mid Wales vehicle tracking specialist's sales flat amid shake-up of customer base

The Newtown-based company, which installs vehicle tracking systems for company fleets and to monitor driving for insurance companies, moved away from less profitable insurance contracts in the six months to June 30, and saw its revenues flat as a result.

The number of UK vehicles with its systems in for insurance fell by 35 per cent to 23,947, while revenue in that division fell by 26 per cent to £3.2m.

However, revenue for the group as a whole was flat at £11.5 million, as the former Shropshire Star Excellence In Business Awards winner grew fleet subscriptions by 45 per cent to 14,324, and revenue in that sector by 15 per cent to £8.3 million.

Managing director Andy Walters said: "As indicated a year ago, we have focused on our key fleet business, resulting in much stronger growth in the subscription base.

"This led to an anticipated decline in new insurance installations, however fleet revenue growth largely compensated for this and total revenue was broadly consistent with last year."

He added: "Pleasingly, the strategic decision taken last year to focus on our fleet business has delivered strong subscription growth.

"Furthermore, the news that we are to resume supply in the second half for an insurance programme which had been switched to a low-cost supplier provides an excellent endorsement of our quality and service levels. This is expected to lead to a more acceptable balance in margin in future between the two parts of our business and a clearer understanding in the market of the value we deliver.

"Although the insurance business remains less predictable than our fleet business, we will use any additional income from it to invest in the future of our fleet operations as the business develops, and hence we remain on track to meet market profit expectations for the year as a whole."

Operating profit was also fairly flat edging down from £3.3 million to £3.2 million over the course of the half-year period.

Meanwhile, its business grew in the USA and France, with its subscription base rising in those countries by 26 per cent and 87 per cent respectively.

The company, which employs around 90 people including around 65 at its Park Street offices in Newtown, floated on the London Stock Exchange in November 2014 in a move that valued it at around £54.1 million.