Quartix Technologies shares gained 1.5% to 333p in late afternoon trading on Monday after the firm announced a continued growth in new unit subscriptions by 26% in HY1 2022 from HY1 2021.
Quartix Technologies confirmed a record 32,085 units installed over the term, with its vehicle subscription base rising 9.4% to 221,800 vehicles.
The group reported an expected revenue of £13.3 million, adjusted EBITDA of £2.6 million and an underlying free cash flow of £2 million, in line with market forecasts.
The company highlighted an annualised subscription base value climb by £1.6 million compared to £1 million in the previous year on a constant currency basis, representing a base of £26 million.
The firm reported a high rate of invoiced recurring revenues at 92% of sales, with an improvement in price erosion over 12 months at 5.6% in constant currency rates compared to 6.5% the year before.
Quartix Technologies further mentioned a cash balance of £3.9 million on 30 June 2022.
The company added its established policy of immediately expensing the cost of new units and their installation meant that strong growth in new units caused a short term fall in profitability, which would be followed by a growth in profits as a result of the recurring nature of revenues.
“Quartix has had a very strong first half and it is very pleasing to see first half installed units grow at 26%, especially following the strong performance in the first half of 2021,” said Quatrix CEO Richard Lilwall.
“Our work on operational scalability has been successful, allowing our team to improve customer satisfaction on our growing subscription base without adding further resources. Sales execution excellence is well underway with the imminent introduction of new tools to drive best practice and insights at every stage of the sales funnel. Initial implementation is expected to be completed within the next quarter and further refinement and improvement will allow us to achieve further revenue improvements in 2023.”
“We are looking forward to the second half with confidence in achieving market expectations for the full year.”