Company Number 05452547 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Trakm8 Holdings PLC 
 
REPORT AND FINANCIAL STATEMENTS 
 
for the year ended  
 
31 March 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Trakm8 Holdings PLC 
 
CONTENTS 
 
 
 
 
1 
Company Number 05452547 
 
 
 
2 Officers and Advisers 
 
3 Highlights 
 
4 Chairman’s Statement 
 
5 CEO’s Statement 
 
8 Directors’ Report 
 
13 Statement of Directors’ Responsibilities 
 
14 Independent Auditors’ Report to the members of 
Trakm8 Holdings PLC 
 
16 Consolidated Statement of Comprehensive Income 
 
17 Consolidated Statement of Changes in Equity 
 
18 Consolidated Statement of Financial Position 
 
19 Consolidated Statement of Cash Flows 
 
20 Notes to the Consolidated Financial Statements 
 
43 Parent Company Balance Sheet 
 
44 Notes to the Parent Company Financial Statements 
 
  Trakm8 Holdings PLC 
 
OFFICERS AND ADVISERS 
 
 
 
 
Company Number 05452547 
 
 
 
2 
 
DIRECTORS 
 
C D Buck 
M Cowley    
T Cowley    
J Hedges 
J Watkins 
P Wilson    
 
SECRETARY 
 
J Hedges   
 
REGISTERED OFFICE 
 
Lydden House 
Wincombe Business Park 
Shaftesbury 
Dorset 
SP7 9QJ 
 
BANKERS 
 
HSBC Bank plc 
HSBC House 
Mitchell Way 
Southampton 
SO18 2XU 
 
AUDITOR 
 
Milsted Langdon LLP 
Winchester House 
Deane Gate Avenue 
Taunton 
TA1 2UH 
 
NOMAD and BROKER 
 
finnCap Limited 
60 New Broad Street 
London 
EC2M 1JJ 
 
FINANCIAL PUBLIC RELATIONS 
 
MHP Communications 
60 Great Portland Street 
London 
W1W 7RT 
  Trakm8 Holdings PLC 
 
HIGHLIGHTS 
 
3 
Company Number 05452547 
 
 
Financial  
 
• Revenue £4.75m (2012: £5.22m) 
• Recurring revenues up by 9.9% to an annualised £2.15m 
• Gross profit margin up to 71.9% (2012: 63.7%) 
• EBITDA £0.31m (2012: £0.36m) 
• Profit before tax £0.04m (2012: £0.08m)  
• Cash balances up 29.2% to £1.41m at year end 
• Net assets increased to £2.52m (2012: £2.38m) 
 
Operating 
 
• Investment for Growth strategy successfully implemented 
• Successful transition to recurring revenue business model 
• Strong year for new product and service launches, including: 
o Trakm8 eco
N
, logistics, and tacho telematics solutions  
• Encouraging order pipeline and sales opportunities  
• Expanding range of international opportunities 
• Completion of product transfer agreement with Visilink 
 
Current trading 
 
• Investments in new products and sales resource expected to positively impact the second half 
of new financial year and beyond  
• Successful integration of Visilink customers 
• Year to date revenues are 23% ahead of last year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Trakm8 Holdings PLC 
 
CHAIRMAN’S STATEMENT 
 
 
 
Company Number 05452547 
 
 
 
4 
 
 
 
I am pleased to report that Trakm8’s strategy of reinvesting in the business in order to drive long 
term growth is bearing fruit.  
 
Trakm8 has successfully introduced a number of new products and software solutions that have been 
well received by the market.  
 
The strength of the Trakm8 financial model where little profit is taken on the original sales is 
demonstrated by the improvement in cash balances to £1.41m and rising recurring revenues which 
continues to be the key focus of our strategy. 
 
I am encouraged by the outlook for the business. The Group is well positioned with a strong balance 
sheet in a growing market. With the increasingly advanced solutions offered by the Company’s 
technology, I am confident that the business will continue to grow profitably and take advantage of 
opportunities as and when they arrive. 
 
As announced separately today, I have decided to step down after seven years as Chairman and non-
executive Director of Trakm8.  John Watkins, currently our Chief Executive, has become Executive 
Chairman, a new role.  At the same time we are appointing Keith Evans, a former partner of 
PricewaterhouseCoopers, as non-executive director.  It has been a pleasure contributing to the 
development of the Trakm8 story and I am confident that its future is bright and secure.       
 
 
Dawson Buck 
Chairman  Trakm8 Holdings PLC 
 
CEO’S STATEMENT 
 
 
5 
Company Number 05452547 
 
 
I am pleased with the progress summarised in the Chairman’s Statement. 
 
The decision was taken last year and implemented early in the second half, to make a game changing 
investment in engineering, sales and support staff.  This increased our operating costs by 
approximately £50,000 per month. This decision has also negatively impacted the profit and loss 
during the period as our revenues have as expected lagged these investments. 
 
Due to delays on some product sales which took longer to complete than expected, overall revenues 
declined somewhat; although disappointing, this is a reflection of the increased emphasis on solutions 
sales and engineering services. The transition from the hardware supplier Trakm8 was five years ago 
to the full solutions supplier of today has made the revenue line move from one off sales today to 
long term recurring service revenues. As a result the top line can be strongly influenced by individual 
major contracts but the underlying revenue security of the Group continues to improve.  
 
Trakm8 has enjoyed a significant improvement in sales of complete solutions and engineering services 
during the period. This has resulted in strong growth in recurring revenues and higher margins.  
 
The Group revenues are accounted for in three segments: 
 
Products  
 
This is the segment where Trakm8 supplies other Telematics Service Providers with hardware 
solutions. In most cases this also includes our market leading unit configuration firmware. This has 
been a year of transition. Many of our UK customers for our products in the past have migrated to 
alternative suppliers that do not compete with them in the solutions market. This migration is perhaps 
a validation of our success in competing at the end user level. 
 
Following the appointment of an International Business Development Manager early in the year, we 
have increased our international sales of hardware. This has taken some time to build traction as 
customers conduct extensive trials to ensure that the hardware meets their requirements. New 
customers have started to buy units from us in North and South America. Overall, the total number of 
units sold to third parties declined during the year, but the trend towards year-end was positive. The 
highlight of the year was the significant sales of hardware to Motorola as announced on 2 July 2012. 
 
Whilst the sales of hardware to third party integrators help us to ensure our manufactured cost of 
products are as low as can be achieved, these revenues are at lower margins and have no on-going 
recurring revenues. As such they remain important to us but not the most strategically important 
segment. 
 
Solutions  
 
This segment is where Trakm8 supplies customers with a fully integrated service provision. Customers 
include the AA, Eon and Jewson. This solution is also provided through a partner in South Africa.  
 
The number of units reporting to Swift has continued to grow steadily throughout the year and this 
has increased the base of recurring monthly revenue, which provides the improved security and 
predictability to future income. By the end of the financial year the monthly recurring revenue had 
increased by 9.9% on the previous year to an annualised £2.15m. The majority of these revenues are 
not taken as upfront payments ensuring our cash receipts are close to sales booked.  
 
 
  Trakm8 Holdings PLC 
 
CEO’S STATEMENT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
6 
 
We were pleased to announce on 25 April 2013 the completion of a product transfer agreement with 
Visilink, a Cheshire based Telematics Service Provider.   Under the agreement Visilink’s entire 
customer base was offered the opportunity to transfer to our Swift solution. This process proved that 
we could communicate with third party hardware via our Stream servers. No revenues accrued during 
the year to March 2013 but we expect over 500 units to eventually migrate onto Swift, providing a lift 
in recurring revenues for the new financial year. 
 
During the year the Company enhanced the engineering investments in new solutions and launched 
updated versions of Swift and eco
N
.  We also launched a new fleet management routing and 
scheduling package called Logistics. This package has three early adopters and has an encouraging 
number of other inquiries. 
 
Another new product developed during the year but launched in the last month is the Tachograph 
range of solutions that integrate the digital tachograph information into mobile applications for driver 
and operator status reporting and provide operators with the legal compliance data required to meet 
the driver hours regulations. Again early adopters have expressed positive feedback and the pipeline 
of opportunities is growing. 
 
We have also undertaken a considerable amount of development to white label our eco
N
 solution for a 
new customer. This has been a considerable engineering task and no solutions revenues were derived 
during the period. There are, however, good opportunities as a result of this development.  It is 
encouraging that this product is taking market share from more established competitors. 
 
The Solutions segment is the core value enhancing activity of the Group and, overall our revenues 
grew by 9.3% during the period. 
 
Engineering Services  
 
This is the segment where Trakm8 undertakes bespoke software development for customers. The 
customer specific application engineering has been a major feature of the product development team 
as the larger customers have demanded their particular requirements. This has also helped improve 
our core products.  
 
These engineering projects provide profitable consultancy activities in themselves, but also help to 
integrate customers to Trakm8 solutions, and provide on-going support and maintenance revenues. 
Projects for Jewson, St Gobain and others have been undertaken in the past 12 months and whilst 
this activity remains a small percentage of the Group revenues it is considered a key differentiator, 
skill and value added capability. 
 
This segment increased by £0.19m over the previous year to £0.41m. 
  
Outlook 
 
The Board is confident that our investments in new products and sales resources will positively impact 
the second half of new financial year and beyond. In the meantime we have a strong pipeline of new 
products and solutions and we are confident that our recurring revenues will carry on growing.  We 
continue to receive inquiries for increasing levels of engineering services work. 
 
The new solutions and agreements we have announced since the year end will provide additional 
revenues and opportunities in the current financial year and after the first two months of trading our 
revenues are ahead of last year.   Trakm8 Holdings PLC 
 
CEO’S STATEMENT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
7 
 
With our strong balance sheet, good cash generation, and robust business model Trakm8 is in a 
position to consider augmenting growth through selective acquisitions alongside our current organic 
growth strategy. Any acquisition will need to meet our narrow market segment objectives and 
financial criteria.  
 
Finally, I would like to thank all the Trakm8 staff for their tremendous hard work over the past twelve 
months. 
 
 
John Watkins 
CEO  Trakm8 Holdings PLC 
 
DIRECTORS’ REPORT  
 
 
8 
Company Number 05452547 
 
The Directors submit their report and financial statements of Trakm8 Holdings PLC for the year ended 
31 March 2013. 
 
Trakm8 Holdings PLC is a public listed company incorporated and domiciled in England (Company 
Number 05452547) whose shares are quoted on AIM, a market operated by the London Stock 
Exchange plc. 
 
PRINCIPAL ACTIVITIES 
 
The principal activities of the Trakm8 Group are the manufacture, marketing and distribution of 
vehicle telematics equipment and services. Trakm8 Holdings PLC is the holding company for the 
Trakm8 Group. 
 
REVIEW OF THE BUSINESS 
 
The review of the business is contained in the Chairman’s and CEO’s Statement on pages 4 to 7.    
 
 
RESULTS AND DIVIDENDS 
 
The Group results for the year ended 31 March 2013 are shown in the Consolidated Statement of 
Comprehensive Income on page 16. The Directors do not recommend the payment of a dividend. 
 
 
FUTURE DEVELOPMENTS 
 
Future developments of the business is contained in the Chairman’s and CEO’s Statement on pages 4 
to 7.    
 
RESEARCH AND DEVELOPMENT 
 
The Board considers that the Group’s research and development activity plays an important role in the 
operational and financial success of the business.  During the year we announced a strategic 
investment in our research and development activities in order to further enhance the Group’s 
development resources and products for future years. 
 
   Trakm8 Holdings PLC 
 
DIRECTORS’ REPORT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
9 
 
KEY PERFORMANCE INDICATORS 
 
The key performance indicators used to assess the performance and financial status of the Group are 
as follows:- 
 
1. Operating profit.  The Group produced an operating profit of £39,577 compared to last year’s 
operating profit of £88,345.  The decrease in operating profit was as a result of our 
investment in sales, marketing and engineering activities.  
2. Borrowings.  The Group monitors its cash and borrowings position and updates cash flow 
forecasts for the following twelve months on a daily basis.  During the year total borrowings 
decreased from £219,316 to £163,083 at the year end.   
3. Customer services.  A weekly analysis is undertaken of outstanding customer service cases to 
ensure compliance with our service level agreements. 
4. Credit control.  All overdue accounts are reviewed and where necessary contacted on a 
weekly basis. 
 
GOING CONCERN 
 
The Directors confirm that they are satisfied that the Group has adequate resources and facilities to 
continue in business for the foreseeable future.  For this reason they continue to adopt the going 
concern basis in preparing the financial statements. 
 
DIRECTORS 
     
The following Directors have held office during the year: 
C D Buck   
M Cowley  
T Cowley  
J Hedges  
J Watkins  
P Wilson  
 
DIRECTORS AND THEIR INTERESTS 
 
The present members of the Board are as listed on page 2.   The Directors’ interests in the shares of 
the Company are detailed below:- 
 
 
1p ordinary shares 
At 31 March 2013 
% of issued 
ordinary share capital 
(18,864,731 ordinary 
shares) 
1p ordinary shares 
At 1 Apr 2012 
or on subsequent date of 
appointment 
% of issued 
ordinary share capital 
(18,764,731 ordinary 
shares) 
C D Buck 641,994 3.37% 541,994 2.87% 
M Cowley  1,269,203 6.66% 1,194,203 6.33% 
T Cowley  1,534,002 8.05% 1,459,002 7.73% 
J Hedges 1,470,808 7.72% 1,171,025 6.21% 
J Watkins 4,581,162 24.05% 3,852,738 20.42% 
P Wilson 555,512 2.86% 420,512 2.23% 
The Directors had no interest in the share capital of the Company’s subsidiary undertakings at 
31
 
March 2013 or on the date on which these financial statements were approved. 
   Trakm8 Holdings PLC 
 
DIRECTORS’ REPORT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
10
 
Directors’ Remuneration 
 
The Directors’ remuneration for the year ended 31 March 2013 was: 
 
Audited 
 
 Salaries & 
 Fees 
 
£ 
Bonuses 
 
 
£ 
Benefits 
 
 
£ 
Share 
Options 
 
£ 
Total 
31 
March  
2013        
 £ 
Total 
31 March 
 2012            
 £ 
D Buck 35,000 - - 748 35,748 35,000 
M Cowley 78,925 893 5,581 2,243 87,642 81,712 
T Cowley 82,106 929 5,581 2,243 90,859 84,798 
J Hedges  82,106 929 5,770 2,990 91,795 84,723 
J Watkins  101,656 7,749 11,047 4,110 124,562 84,769 
P Wilson  75,338 852 9,429 2,243 87,862 83,094 
Total 
455,131 11,352 37,408 14,577 518,468 454,096 
 
Directors’ Share Options 
 
At 31 March 2013 the following options had been granted to the Company's Directors and remain 
current and unexercised: 
 
 Option 
exercise 
price 
Balance as at 
31 March 2012 
Granted 
during 
year 
Exercised 
during year 
Expired/ 
forfeited 
during year 
Balance as at 
31 March 2013 
Expiry date 
D Buck £0.06 100,000 - (100,000) - - - 
 £0.13 - 50,000 - - 50,000 30/07/22 
M Cowley £0.06 75,000 - (75,000) - - - 
 £0.13 - 150,000 - - 150,000 30/07/22 
        
T Cowley £0.06 75,000 - (75,000) - - - 
 £0.13 - 150,000 - - 150,000 30/07/22 
        
J Hedges £0.13 - 200,000 - - 200,000 30/07/22 
        
J Watkins £0.06 200,000 - (200,000) - - - 
 £0.13 - 275,000 - - 275,000 30/07/22 
        
P Wilson £0.06 100,000 - (100,000) - - - 
 £0.13 - 150,000 - - 150,000 30/07/22 
 
The Group provides indemnity cover for the Directors. 
 
 
 
 
 
   Trakm8 Holdings PLC 
 
DIRECTORS’ REPORT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
11
 
SUPPLIERS PAYMENT POLICY 
 
It is the Group's policy to establish payment terms with suppliers and to adhere to those terms, 
provided that the goods and services are in accordance with the agreed terms and conditions.  Trade 
payables for the parent company at the year end represented 68 days of purchases (2012: 45 days). 
 
EMPLOYMENT POLICY 
 
During the year, the Group has consulted with employees in matters likely to affect their interests and 
is committed to involving them in the performance and development of the Group.  
 
DISABLED EMPLOYEES 
 
The Group gives full consideration to applications for employment from disabled persons where the 
requirements of the job can be adequately fulfilled by a disabled person. 
 
Should existing employees become disabled, it is the Group's policy wherever practicable to provide 
continuing employment under normal terms and conditions and to provide training, career 
development and promotion to such employees as appropriate. 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
 
The following are identified as the principle risks and uncertainties facing the Group:- 
 
Technology risk - The Group invests in research and development to enable the delivery of new and 
enhanced products and services. 
 
Liquidity risk - The Group operates a long-term business, and its policy is to finance it primarily with 
equity and short to medium-term borrowings. Short-term flexibility is achieved by cash balances and 
overdraft facilities. 
 
Credit risk - The Group aims to minimise its exposure to credit risk through a mixture of credit 
insurance, credit limits and credit checks on new customers. 
 
Foreign currency risk - Historically the Group has not used hedging instruments to minimise currency 
risk as the exposure is limited. If foreign currency exposure increases, the use of foreign currency 
hedging instruments will be reviewed as necessary.  
  
STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR 
 
The Directors who were in office on the date of approval of these financial statements have 
confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is 
unaware. Each of the Directors has confirmed that they have taken all the steps that they ought to 
have taken as Directors in order to make themselves aware of any relevant audit information and to 
establish that it has been communicated to the auditor. 
 
 
 
 
 
 
  Trakm8 Holdings PLC 
 
DIRECTORS’ REPORT (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
12
 
AUDITORS 
 
A resolution to reappoint Milsted Langdon LLP, Chartered Accountants, as auditors, will be put to the 
members at the annual general meeting. 
 
By approval of the Board on 28 June 2013. 
 
 
 
 
J Hedges 
Secretary  Trakm8 Holdings PLC 
 
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN THE PREPARATION OF 
FINANCIAL STATEMENTS 
 
13 
Company Number 05452547 
 
The Directors are responsible for preparing the Directors’ Report and the financial statements in 
accordance with applicable law and regulations. 
  
Company law requires the Directors to prepare Group and Company financial statements for each 
financial year.  The Directors are required by the AIM Rules of the London Stock Exchange to prepare 
group financial statements in accordance with International Financial Reporting Standards ("IFRS")  as 
adopted by the European Union (“EU”) and have elected under company law to prepare the Company 
financial statements in accordance with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law). 
  
The Group financial statements are required by law and IFRS adopted by the EU to present fairly the 
financial position and performance of the Group; the Companies Act 2006 provides in relation to such 
financial statements that references in the relevant part of that Act to financial statements giving a 
true and fair view are references to their achieving a fair presentation. 
 
Under company law the Directors must not approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the Group and the Company and of the 
profit or loss of the Group for that period.  
  
In preparing each of the Group and Company financial statements, the Directors are required to: 
  
a. select suitable accounting policies and then apply them consistently; 
 
b. make judgements and accounting estimates that are reasonable and prudent; 
 
c. for the Group financial statements, state whether they have been prepared in accordance with 
IFRS adopted by the EU and for the Company financial statements state whether applicable UK 
accounting standards have been followed, subject to any material departures disclosed and 
explained in the Group and Company financial statements; and 
 
d. prepare the financial statements on the going concern basis unless it is inappropriate to presume 
that the Group and the Company will continue in business. 
 
The Directors are responsible for keeping adequate accounting records that are sufficient to show and 
explain the Group’s and the Company’s transactions and disclose with reasonable accuracy at any 
time the financial position of the Group and the Company and enable them to ensure that the financial 
statements comply with the Companies Act 2006.  They are also responsible for safeguarding the 
assets of the Group and the Company and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities. 
 
The Directors are responsible for the maintenance and integrity of the corporate and financial 
information included on the Trakm8 Holdings PLC website. 
 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions. 
 
 
  INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF  
 
Trakm8 Holdings PLC 
 
14 
Company Number 05452547 
 
We have audited the financial statements of Trakm8 Holdings PLC for the year ending 31
st
 March 
2013 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated 
Statement of Changes in Equity, the Consolidated Statement of Financial Position, the Consolidated 
Statement of Cash Flows, the Parent Company Balance Sheet and the related Notes.  The financial 
reporting framework that has been applied in the preparation of the Group financial statements is 
applicable law and International Financial Reporting Standards (IFRS) as adopted by the European 
Union.  The financial reporting framework that has been applied in the preparation of the Parent 
Company financial statements is applicable law and United Kingdom Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice).  
 
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of 
Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to 
the Company’s members those matters we are required to state to them in an auditor’s report and for 
no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for 
this report, or for the opinions we have formed. 
 
Respective responsibilities of directors and auditors 
 
As more fully explained in the Directors’ Responsibilities Statement set out on page 13, the Directors 
are responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view.  Our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland).  Those 
standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for 
Auditors. 
 
Scope of the audit of the financial statements 
 
A description of the scope of an audit of financial statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/private.cfm. 
 
Opinion on the financial statements 
 
In our opinion  
 
• the financial statements give a true and fair view of the state of the Group’s and of the Parent 
Company’s affairs as at 31 March 2013 and of the Group’s profit for the year then ended; 
• the Group financial statements have been properly prepared in accordance with IFRS as adopted 
by the European Union;  
• the Parent Company financial statements have been properly prepared in accordance with United 
Kingdom Generally Accepted Accounting Practice; and 
• the financial statements have been prepared in accordance with the requirements of the 
Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
 
In our opinion the information given in the Directors’ Report for the financial year for which the 
financial statements are prepared is consistent with the financial statements.   INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF  
 
Trakm8 Holdings PLC (continued) 
 
 
 
 
Company Number 05452547 
 
 
 
15 
 
Matters on which we are required to report by exception 
 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires 
us to report to you if, in our opinion: 
 
• adequate accounting records have not been kept by the Parent Company, or returns 
adequate for our audit have not been received from branches not visited by us; or 
• the Parent Company financial statements are not in agreement with the accounting records 
and returns; or 
• certain disclosures of Directors’ remuneration specified by law are not made; or 
• we have not received all the information and explanations we require for our audit.  
 
 
 
 
 
 
Nigel Fry (Senior Statutory Auditor) 
For and behalf of Milsted Langdon LLP 
Chartered Accountants and Statutory Auditors 
Winchester House 
Deane Gate Avenue 
Taunton 
TA1 2UH 
 
28 June 2013 
 
 
  Trakm8 Holdings PLC 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  
for the year ended 31 March 2013 
 
16 
Company Number 05452547 
 
 
 Notes 2013 2012 
    
  £ £ 
    
REVENUE 6 4,749,916 5,215,565 
Cost of sales  (1,332,833) (1,889,499) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Gross profit 3,417,083 3,326,066 
 
Other income 7 - 5,039 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 3,417,083 3,331,105 
   
Administrative expenses (3,377,506) (3,242,760) 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
OPERATING PROFIT 7 39,577 88,345 
 
Finance income  2,423 788 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
  42,000 89,133 
    
Finance costs 8 (4,478) (5,249) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
PROFIT BEFORE TAXATION 37,522 83,884 
 
Income tax credit  9 112,537 50,666 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE 
PARENT 
 150,059 134,550 
    
OTHER COMPREHENSIVE INCOME    
Currency translation differences  (1,615) 1,493 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE 
TO OWNERS OF THE PARENT  
148,444 136,043 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
    
EARNINGS PER ORDINARY SHARE (PENCE) ATTRIBUTABLE TO 
OWNERS OF THE PARENT  
 
 
Basic 11 0.79p 0.71p 
    
Diluted 11 0.78p 0.70p 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
There were no discontinued operations in 2013 or 2012.  Accordingly the results relate to continuing operations. 
   Trakm8 Holdings PLC 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
17 
 Share 
Capital 
Share 
premium 
Merger  
Reserve 
Translation 
reserve 
Retained 
Earnings 
Total equity 
attributable to 
owners of the 
parent 
 £ £ £  £ £  £  
       
Balance as at 1 April 2011 187,647 1,719,402 509,837 206,321 (387,218) 2,235,989 
Comprehensive income       
Profit for the year 
- - - - 
134,550 134,550 
Other comprehensive income 
      
Exchange differences on 
translation of overseas  
operations 
- - - (1,493) - (1,493) 
Total comprehensive income - - - (1,493) 134,550 133,057 
       
Transactions with owners       
Shares issued 1,000 4,250 - - - 5,250 
IFRS2 Share based payments 
- -  - - 5,537 5,537 
Transactions with owners 1,000 4,250 - - 5,537 10,787 
Balance as at 1 April 2012 188,647 1,723,652 509,837 204,828 (247,131) 2,379,833 
       
Comprehensive income       
Profit for the year - - - - 150,059 150,059 
Other comprehensive income       
Exchange differences on 
translation of overseas  
operations 
- - - (1,615) - (1,615) 
Total comprehensive income - - - (1,615) 150,059 148,444 
       
Transactions with owners       
Shares issued 5,500 27,500 - - - 33,000 
Purchase of own shares - - - - (57,924) (57,924) 
IFRS2 Share based payments - - - - 19,656 19,656 
Transactions with owners 5,500 27,500 - - 111,791 143,176 
Balance as at 31 March 2013 194,147 1,751,152 509,837 203,213 (135,340) 2,523,009 
       
 
  Trakm8 Holdings PLC 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
as at 31 March 2013 
 
18 
Company Number 05452547 
   
 
 
2013 2012 
 
 
  
 
Notes 
£ £ 
NON CURRENT ASSETS 
 
  
Intangible assets      12 868,530 1,005,107 
Property and equipment      13 560,175 517,118 
Deferred income tax asset      16 110,290 98,421 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -   
 1,538,995 1,620,646 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
CURRENT ASSETS 
Inventories      14 548,143 410,016 
Trade and other receivables      15 643,172 782,375 
Current tax assets 
     9 
100,668 15,488 
Cash and cash equivalents 
 
1,405,133 1,087,474 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 2,697,116 2,295,353 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
CURRENT LIABILITIES 
 
  
Trade and other payables      17 (1,532,349) (1,250,672) 
Borrowings      18 (46,740) (56,223) 
 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
 
(1,579,089) (1,306,895) 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
   
CURRENT ASSETS LESS CURRENT LIABILITIES 1,118,027 988,458 
   
TOTAL ASSETS LESS CURRENT LIABILITIES 2,657,022 2,609,104 
   
NON CURRENT LIABILITIES    
Borrowings      18 (116,343) (163,093) 
Provisions      19 (17,670) (66,178) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - 
NET ASSETS 2,523,009 2,379,833 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  EQUITY 
  Share capital  21 194,147 188,647 
  Share premium account  1,751,152 1,723,652 
  Merger reserve account  509,837 509,837 
  Translation reserve  203,213 204,828 
  Retained earnings  (135,340) (247,131) 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT  2,523,009 2,379,833 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
These financial statements were approved by the Board of Directors and authorised for issue on 
28 June 2013 and are signed on their behalf by: 
 
 
 
 
J Watkins       J Hedges 
Director        Director 
  Trakm8 Holdings PLC 
 
CONSOLIDATED STATEMENT OF CASH FLOWS 
for the year ended 31 March 2013 
 
19 
Company Number 05452547 
 
   
 Notes 2013 2012 
    
  £ £ 
NET CASH INFLOW FROM OPERATING ACTIVITIES  23 496,650 110,845 
    
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of property, plant and equipment  (97,834) (91,232) 
Purchases of intangible assets - (89,241) 
 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
NET CASH USED IN INVESTING ACTIVITIES   (97,834) (180,473) 
  
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
   
CASH FLOWS FROM FINANCING ACTIVITIES   
Issue of new shares 33,000 5,250 
Purchase of Treasury shares (57,924) - 
(Repayment) / new obligations under hire purchase agreements (35,125) 53,296 
Repayment of loans (21,108) (20,471) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
NET CASH (USED IN) /FROM FINANCING ACTIVITIES (81,157) 38,075 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 317,659 (31,553) 
  
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,087,474 1,119,027 
 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,405,133 1,087,474 
 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS 
for the year ended 31 March 2013 
 
 
 
 
20 
Company Number 05452547 
1.     GENERAL INFORMATION 
 
Trakm8 Holdings PLC (“Company”) is a public limited company incorporated in the United 
Kingdom (registration number 05452547). The Company is domiciled in the United Kingdom and 
its registered address is Lydden House, Wincombe Business Park, Shaftesbury, Dorset, SP7 9QJ. 
The Company’s Ordinary Shares are traded on the AIM market of the London Stock Exchange. 
 
The Group’s principal activity is the manufacture, marketing and distribution of vehicle telematics 
equipment and services. The Company’s principal activity is to act as a holding company for its 
subsidiaries. 
 
2. AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS 
 
The Group’s financial statements have been prepared in accordance with International Financial 
Reporting Standards (“IFRS”) and International Financial Reporting Interpretations Committee 
(“IFRIC”) interpretations as endorsed by the European Union, and with those parts of the 
Companies Act 2006 applicable to companies reporting under IFRS.  
 
3. BASIS OF PREPARATION 
 
The accounting policies set out in note 4 have been applied consistently to all periods presented 
in these consolidated financial statements. 
 
These financial statements are presented in sterling as that is considered to be the currency of 
the primary economic environment in which the Group operates.  This decision was based on the 
Group’s workforce being based in the UK and that sterling is the currency in which management 
reporting and decision making is based. 
 
4. ACCOUNTING POLICIES 
 
 BASIS OF ACCOUNTING 
 
The preparation of the financial statements requires management to make estimates and 
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and 
the disclosure of contingent liabilities at the date of the financial statements.  If in the future 
such estimates and assumptions which are based on management’s best judgement at the date 
of the financial statements, deviate from the actual circumstances, the original estimates and 
assumptions will be modified as appropriate in the year in which the circumstances change.  
Where necessary, the comparatives have been reclassified or extended from the previously 
reported results to take into account presentational changes.   
 
 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
21 
4.    ACCOUNTING POLICIES (continued) 
 
BASIS OF CONSOLIDATION 
 
The consolidated financial statements incorporate the financial statements of the Company and 
entities controlled by the Company (its subsidiaries) made up to 31 March each year.  Control is 
achieved where the Company has the power to govern the financial and operating policies of an 
investee entity so as to obtain benefits from its activities. 
 
The trading results of subsidiaries acquired or disposed of during the year are included in the 
consolidated Statement of Comprehensive Income from the effective date of acquisition or up to 
the effective date of disposal, as appropriate. 
 
All intra-group transactions, balances, income and expenditure are eliminated on consolidation. 
 
The purchase method of accounting is used to account for the acquisition of subsidiaries by the 
Group.  The cost of an acquisition is measured as the fair value of the assets given, equity 
instruments issued and liabilities incurred or assumed at the date of exchange.  Identifiable 
assets acquired and liabilities and contingent liabilities assumed in a business combination are 
initially measured at fair value at the acquisition date irrespective of the extent of any minority 
interest.  The excess of cost of acquisition over the fair values of the Group’s share of identifiable 
net assets acquired is recognised as goodwill.  Any deficiency of the cost of acquisition below the 
fair value of identifiable net assets acquired (i.e. discount on acquisition) is recognised directly in 
the Statement of Comprehensive Income.   
 
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the 
accounting policies used into line with those used by other members of the Group. 
 
 
SHARE-BASED PAYMENTS 
 
The Group has applied the requirements of IFRS 2 Share-based Payment.  In accordance with 
the transitional provisions, IFRS 2 has been applied to all grants of equity instruments after 
7 November 2002 that were unvested as of 1 April 2006. 
 
The Group issues equity-settled share-based payments to certain employees. Equity-settled 
share-based payments are measured at fair value at the date of grant. The fair value determined 
at the grant date of equity-settled share-based payments is expensed on a straight-line basis 
over the vesting period, based on the Group’s estimate of shares that will eventually vest. 
 
The fair value is measured by use of the Black-Scholes option pricing model. The expected life 
used in the model has been adjusted, based on management’s best estimate, for the effect of 
non-transferability, exercise restrictions, and behavioural considerations. No expense is 
recognised for awards that do not ultimately vest.  
 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
22 
4.     ACCOUNTING POLICIES (continued) 
 
FINANCIAL INSTRUMENTS 
 
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the 
Group becomes a party to the contractual provisions of the instrument. 
 
Trade receivables 
Trade receivables are initially recognised at fair value and subsequently measured at their 
amortised cost using the effective interest method less any provision for impairment.  A provision 
for impairment is made where there is objective evidence, (including customers with financial 
difficulties or in default on payments), that amounts will not be recovered in accordance with 
original terms of the agreement.  A provision for impairment is established when the carrying 
value of the receivable exceeds the present value of the future cash flow discounted using the 
original effective interest rate.  The carrying value of the receivable is reduced through the use of 
an allowance account and any impairment loss is recognised in the Statement of Comprehensive 
Income. 
 
Cash and cash equivalents 
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term 
highly liquid investments that are readily convertible to a known amount of cash and are subject 
to an insignificant risk of change in value.  For the purposes of the Cash Flow Statement, cash 
and cash equivalents includes bank overdrafts.  
 
Financial liabilities and equity 
Financial liabilities and equity instruments are classified according to the substance of the 
contractual arrangements entered into.  An equity instrument is any contract that evidences a 
residual interest in the assets of the Group after deducting all of its liabilities. 
 
Bank borrowings 
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct 
issue costs. Finance charges, including premiums payable on settlement or redemption, are 
accounted for on an accruals basis and are added to the carrying amount of the instrument to 
the extent that they are not settled in the period in which they arise. 
 
Trade payables 
Trade payables are initially recognised at fair value and subsequently at amortised cost using the 
effective interest method. 
 
GOODWILL  
 
Goodwill arising on consolidation is recorded as an intangible asset and is the surplus of the cost 
of acquisition over the Group’s interest in the fair value of identifiable net assets acquired.  
Goodwill is reviewed annually for impairment.  Any impairment identified as a result of the review 
is charged in the Statement of Comprehensive Income.  Negative goodwill is written off in the 
year in which it arises. 
 
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of 
goodwill is included in the determination of the profit or loss on disposal.  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
23 
4.    ACCOUNTING POLICIES (continued) 
 
INTANGIBLE ASSETS OTHER THAN GOODWILL 
  
An intangible asset, which is an identifiable non-monetary asset without physical substance, is 
recognised to the extent that it is probable that the expected future economic benefits 
attributable to the asset will flow to the Group and that its cost can be measured reliably.  Such 
intangible assets are carried at cost less amortisation.  Amortisation is charged to ‘Administrative 
expenses’ in the Statement of Comprehensive Income on a straight line basis over the intangible 
assets’ useful economic life (1-10 years). 
 
Expenditure on research activities is recognised as an expense in the period in which it is 
incurred.   
 
Development expenditure is capitalised as an intangible asset only if the following conditions are 
met: 
 
• an asset is created that can be identified; 
• it is probable that the asset created will generate future economic benefit;  
• the development cost of the asset can be measured reliably; 
• it meets the Group’s criteria for technical and commercial feasibility; and 
• sufficient resources are available to meet the development to either sell or use as an asset. 
 
 Development expenditure thus capitalised is amortised on a straight-line basis over its useful life.  
Where the criteria are not met, development expenditure is recognised as an expense in the 
‘Administrative expenses’ line of the Statement of Comprehensive Income. 
 
 PROPERTY, PLANT AND EQUIPMENT 
 
Property, plant and equipment are stated at cost less any subsequent accumulated depreciation 
or impairment losses.  With the exception of freehold buildings held at 31 March 2006 (the date 
of transition to IFRS), cost represents purchase price together with any incidental costs to 
acquisition.  As permitted by IFRS 1, the cost of freehold buildings at 31 March 2006 represents 
deemed cost, being the market value of the property for existing use at that date. 
 
Depreciation is provided on all property, plant and equipment, other than freehold land, at rates 
calculated to write each asset down to its estimated residual value over its expected useful life, 
as follows: 
 
Buildings 2%  straight line 
Furniture, fixtures and equipment 25% reducing balance 
Computer equipment 33% straight line 
 
Assets held under finance leases or hire purchase arrangements are depreciated over their 
expected useful lives on the same basis as owned assets or, where shorter, over the term of the 
relevant agreement. 
 
The assets’ residual values and useful lives are reviewed at each balance sheet date and 
adjusted if appropriate.  The carrying values of property, plant and equipment are reviewed for 
impairment when events or changes in circumstances indicate that the carrying value may not be 
recoverable.  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
24 
4.     ACCOUNTING POLICIES (continued) 
 
INVENTORIES 
 
Inventories are valued at the lower of cost and net realisable value. In general cost is determined 
on a first in first out basis and includes all direct expenditure and production overheads based on 
a normal level of activity. Net realisable value is the price at which the stocks can be sold in the 
normal course of business after allowing for the costs of realisation and where appropriate for 
the costs of conversion from its existing state to a finished condition. Provision is made for 
obsolete, slow moving and defective stocks. 
 
LEASES 
 
Assets held under finance leases, which are leases where substantially all the risks and rewards 
of ownership of the asset have been transferred to the Group, are capitalised in the balance 
sheet and depreciated over the shorter of the lease term or their useful lives.  The asset is 
recorded at the lower of its fair value and the present value of the minimum lease payments at 
the inception of the lease.  The capital elements of future obligations under finance leases are 
included in liabilities in the balance sheet and analysed between current and non-current 
amounts.  The interest elements of future obligations under finance leases are charged to the 
Statement of Comprehensive Income over the periods of the leases and represent a constant 
proportion of the balance of capital repayments outstanding in accordance with the effective 
interest rate method. 
 
Leases where the lessor retains substantially all the risks and rewards of ownership are classified 
as operating leases.  The cost of operating leases (net of any incentives received from the lessor) 
is charged to the Statement of Comprehensive Income on a straight line basis over the periods 
of the leases. 
 
FOREIGN CURRENCIES 
 
Foreign currency assets and liabilities are converted to sterling at the rates of exchange ruling at 
the end of the financial year. Transactions in foreign currencies are converted to sterling at the 
rates of exchange ruling at the transaction date. All of the resulting exchange differences are 
recognised in the Statement of Comprehensive Income as they arise. 
 
For the purpose of presenting consolidated financial statements, the assets and liabilities of the 
Group’s foreign operations are translated at exchange rates prevailing on the balance sheet date.  
Income and expense items are translated at the average exchange rates for the period.  
Exchange differences arising are classified as equity and transferred to the Group’s reserves.  
Such translation differences are recognised as income or expense in the period in which the 
operation is disposed of. 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
25 
4. ACCOUNTING POLICIES (continued) 
 
TAXATION 
The tax expense represents the sum of the current tax expense and deferred tax expense. 
The tax currently payable is based on taxable profit for the year.  Taxable profit differs from net 
profit as reported in the Statement of Comprehensive Income because it excludes items of 
income or expense that are taxable or deductible in other years and it further excludes items that 
are never taxable or deductible. The Group’s liability for current tax is calculated by using tax 
rates that have been enacted or substantively enacted by the balance sheet date. 
Deferred tax is the tax expected to be payable or recoverable on differences between the 
carrying amount of assets and liabilities in the financial statements and the corresponding tax 
bases used in the computation of taxable profit, and is accounted for using the balance sheet 
liability method.  
Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax 
assets are recognised to the extent that it is probable that taxable profits will be available against 
which deductible temporary differences can be utilised.  
Deferred tax is calculated at the tax rates that are expected to apply to the period when the 
asset is realised or the liability is settled based upon tax rates that have been enacted or 
substantively enacted.  
 
REVENUE RECOGNITION 
 
Revenue represents the total of amounts receivable for goods and services provided excluding 
value added tax.  Revenue is recognised on the delivery of the goods to the customer.  Where a 
service is provided covering a future period the applicable revenue is shown as Deferred Income 
under Current Liabilities. 
 
WARRANTY CLAIMS 
 
Provision is made for liabilities arising in respect of expected warranty claims. 
 
GOVERNMENT GRANTS 
 
Government grants towards research and development projects are recognised as income over 
the periods necessary to match them with the related costs and are included within Other 
Income. 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
26 
4. ACCOUNTING POLICIES (continued) 
 
SEGMENTAL REPORTING 
 
Operating segments are reported in a manner consistent with the internal reporting provided to 
the chief operating decision-maker.  The chief operating decision maker, who is responsible for 
allocating resources and assessing performance of the operating segments, has been identified 
as the Board of Directors. 
 
EQUITY  
  
Equity comprises the following:  
  
- Share capital represents the nominal value of equity shares. 
- Share premium represents the excess over nominal value of the fair value of 
consideration received for equity shares, net of expenses of the share issue.  
- Merger reserve represents the excess over nominal value of the fair value of consideration 
received for equity shares issued on reverse acquisition of subsidiaries, net of expenses of 
the share issue prior to the date of transition to IFRS. 
- Translation reserve represents cumulative foreign exchange gains and losses on 
retranslation of overseas operations. 
- Retained earnings represents retained losses. 
 
 
CHANGES IN ACCOUNTING STANDARDS AND DISCLOSURES 
 
a) The Group has not adopted any new interpretations or amendments to existing standards in 
the year ended 31 March 2013. 
 
 
b) There are no standards or interpretations that have been issued by the IASB that will have a 
material impact on the Group’s financial statements. 
 
 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
27 
 
5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY  
 
Critical judgements in applying the Group’s accounting policies 
 
In the process of applying the Group’s accounting policies, which are described in note 4, 
management has made the following judgements that have the most significant effect on the 
amounts recognised in the financial statements (apart from those involving estimations, which 
are dealt with below). 
 
Valuation of intellectual property 
 
In assessing the fair value of the intellectual property, management have considered the 
underlying value of the income streams.  Attention has been paid to the potential introduction of 
new products and services and the return anticipated from these and existing product sales.  The 
Directors believe that the fair value of the intellectual property is both appropriate and a realistic 
assessment of its long term value to the Group. 
 
Key sources of estimation uncertainty 
 
The key assumptions concerning the future, and other key sources of estimation uncertainty at 
the balance sheet date, that have a significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial year are discussed below. 
 
Recoverability of internally-generated intangible asset 
 
During the year, management reconsidered the recoverability of its internally generated 
intangible asset which is included in the balance sheet at £237,281.  The costs relate to the 
development of the Group’s portfolio of hardware and software products and management 
continue to believe that the anticipated revenues will enable the carrying amount to be 
recovered in full.  Assumptions have been made on the number of years over which the costs will 
be recovered based on management’s best expectations and these could turn out to be longer or 
shorter although any subsequent adjustment is not expected to be material. 
 
 
Recoverability of trade debtors 
 
The withdrawal or reduction of credit facilities from Banks and leasing companies is affecting a 
wide range of businesses.  Management are particularly conscious of the financial weakness of 
some companies and is closely monitoring its outstanding debtor book in order to minimise the 
risk associated with future bad debts.  Weekly cash receipts are analysed and future supplies are 
stopped if accounts remain overdue.  An increasing number of customers taking the Group’s 
services pay by direct debit and this is reducing the Group’s exposure to the non-recoverability of 
trade debtors in the future.  
 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
28 
6.     SEGMENTAL ANALYSIS 
 
The format of segmental reporting is based on the Group’s management and internal reporting 
of the segments below which carry different risks and rewards and are used to make strategic 
decisions.  Products is the sale of hardware through the Group’s distributors.  Solutions 
represents the sale of the Group’s full vehicle telematics service direct to customers.  Engineering 
services comprises bespoke professional services and mapping solutions. 
 
The Board review the revenue results by segment and the gross margin.  Cost of sales comprise 
hardware costs and have been allocated to the segments based on the number of units sold.  
Administration costs and assets and liabilities are not separated out by segment. 
 
Year ended 31 March 
2013 
Products 
 
 
£ 
Solutions 
 
£ 
Engineering 
services 
£ 
Unallocated 
 
 
£ 
Total 
 
 
£ 
      
Segment revenue 1,308,627 3,035,466 405,823 - 4,749,916 
      
Gross profit 306,945 2,704,315 405,823 - 3,417,083 
      
Depreciation & amortisation (117,841) (66,569) (90,052) - (274,462) 
      
Finance income - - - 2,423 2,423 
      
Finance costs  - - - (4,478) (4,478) 
      
Income tax - - - 112,537 112,537 
      
      
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
29 
6. SEGMENTAL ANALYSIS (continued) 
 
 
Year ended 31 March 
2012 
Products 
 
 
£ 
Solutions 
 
£ 
Engineering 
services 
£ 
Unallocated 
 
 
£ 
Total 
 
 
£ 
      
Segment revenue 2,226,230 2,776,872 212,463 - 5,215,565 
      
Gross profit 789,858 2,323,746 212,462 - 3,326,066 
      
Government grant income - - 5,039 - 5,039 
      
Depreciation & amortisation (124,058) (53,703) (93,230) - (270,991)
      
Finance income - - - 788 788 
      
Finance costs  - - - (5,249) (5,249)
      
Income tax - - - 50,666 50,666 
      
 
 
The Group’s operations are located in the UK and the Czech Republic.  The following table 
provides an analysis of the Group’s revenue by geography based upon location of the Group’s 
customers.   
 
Year ended 31 March 2013 
Products 
 
£ 
Solutions 
 
£ 
Engineering 
services 
£ 
Total 
 
£ 
     
United Kingdom 219,703 2,942,885 303,152 3,465,740 
Europe 608,186 65,744 5,646 679,576 
Africa 93,000 - 90,525 183,525 
Rest of the World 387,738 26,837 6,500 421,075 
 1,308,627 3,035,466 405,823 4,749,916 
 
The Group had one customer who accounted for more than 10% of the Group revenue (2012: one). 
 
 
Year ended 31 March 2012 
Products 
 
£ 
Solutions 
 
£ 
Engineering 
services 
£ 
Total 
 
£ 
     
United Kingdom 1,291,621 2,767,583 98,205 4,157,409 
Europe 171,772 9,289 24,258 205,319 
Africa 214,928 - 90,000 304,928 
Rest of the World 547,909 - - 547,909 
 2,226,230 2,776,872 212,463 5,215,565 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
30 
7. PROFIT FROM OPERATIONS 
 
 2013 2012 
 £ £ 
Profit from operations is stated after charging/ (crediting):    
   
Other income - Government grant - (5,039) 
   
Loss on disposal of fixed assets 2,633 - 
Depreciation - owned fixed assets 
                   - assets on hire purchase 
33,560 
18,417 
30,205 
6,417 
Amortisation of intangible assets  219,852 234,369 
Operating lease rentals   
 Land and buildings 17,729 14,251 
 Other 76,187 31,123 
Loss on foreign exchange transactions 6,936 11,180 
Staff costs (note 10) 1,945,388 1,714,323 
 
 2013 2012 
 £ £ 
Auditor’s remuneration   
  - audit services   
    Parent Company and consolidation 4,825 4,680 
    Subsidiary audits 11,250 10,920 
  - tax advisory services 2,340 2,285 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
  
 
2013 2012 
 
£ £ 
R&D Cost   
  
- Expensed 
457,067 598,818 
- Amortised 
66,978 55,109 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
8. FINANCE COSTS 
 
  
2013 
 
2012 
 £ £ 
   
Interest on finance leases - 54 
Interest on other loans 4,478 5,195 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 4,478 5,249 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
   
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
31 
9. INCOME TAX 
  
 
 2013 2012 
 £ £ 
R&D tax credit (100,668) (15,488) 
Recognition of deferred tax  (40,868) (112,689) 
Current year deferred tax movement 28,999 77,511 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Income tax credit (112,537) (50,666) 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Factors affecting the tax charge 
 
 The tax assessed for the year is lower (2012: lower) than the applicable rate of corporation tax 
in the UK. The difference is explained below: 
 
 2013 2012 
 £ £ 
Profit before tax 37,522 83,884 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
   
 
 
Profit on ordinary activities multiplied by the standard rate of 
corporation tax in the UK of 24% (2011: 26%) 9,005 21,810 
   
Effects of:   
   
Expenses not deductible/income not taxable 1,687 23,167 
Share option adjustment (4,717) (706) 
Temporary differences 4,717 16,979 
Change in deferred tax rates 18,307 16,261 
Deferred tax brought forward recognised (40,868) (112,689) 
R&D tax credit (100,668) (15,488) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Total tax (112,537) (50,666) 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
10. EMPLOYEES 
 2013 2012 
 No.  No.  
The average monthly number of persons (including Directors) 
employed by the Group was: 
   
 Research and development 18 15 
 Selling and distribution 24 19 
 Production 1 1 
 Administration 10 10 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - 
 53 45 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
32 
10. EMPLOYEES (continued) 
 
Staff costs for the employees and Directors (included under Administrative expenses): 
 
  2013 2012 
 £ £ 
Wages and salaries 1,707,001 1,509,854 
Social security costs 218,731 198,931 
Share based payments 19,656 5,537 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 1,945,388 1,714,322 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 Costs relating to the Directors who are the key management of the Group: 
  2013 2012 
 £ £ 
Wages and salaries 466,483 434,337 
Benefits 37,408 19,759 
Social security costs 53,525 49,659 
Share based payments 14,577 1,103 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - 
 571,993 504,858 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Further details of Directors’ fees and salaries, bonuses and pensions are given in the Directors’ 
Report on page 18. 
 
 
11. EARNINGS PER ORDINARY SHARE 
 
The earnings per ordinary share has been calculated using the profit for the year and the 
weighted average number of ordinary shares in issue during the year as follows: 
 
  2013 2012 
  £ £ 
Earnings for the year after taxation  150,059 134,550 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
    
                No.               No. 
Number of ordinary shares of 1p each  19,044,731 18,864,731 
    
Basic weighted average number of ordinary shares of 1p 
each  
 18,999,526 18,820,621 
Basic weighted average number of ordinary shares of 1p 
each (diluted) 
 19,208,565 19,159,446 
  
           = = = = = = = = = = = = = = = = = = = = = =    = =           = = = = = = = = = = = = = = = = = = = = = =    = =
Basic profit pence per share  0.79p 0.71p 
  
Diluted profit pence per share  0.78p 0.70p 
  
     = = = = = = = = = = = = = = = = = = = = = =    = =     = = = = = = = = = = = = = = = = = = = = = =    = =
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
33 
12. INTANGIBLE ASSETS  
     Intellectual 
property 
Development 
costs 
Total 
                    
£ 
                £ £ £ 
 COST     
 As at 1 April 2011  1,673,863 486,510 2,160,373 
 Additions  - 89,241 89,241 
   ───────  ───────  ──────
 As at 31 March 2012  1,673,863 575,751 2,249,614 
 Additions  - 126,375 126,375 
 Reduction in acquisition cost  (43,100) - (43,100) 
   ───────  ───────  ──────
 As at 31 March 2013  1,630,763 702,126 2,332,889 
   ───────  ───────  ──────
 
     Intellectual 
property 
Development 
Costs 
Total 
    
 
 
 £ £ £ 
 AMORTISATION     
 As at 1 April 2011  667,381 342,757 1,010,138 
  Charge for year  179,260 55,109 234,369 
   ──────  ──────  ──────  
 As at 31 March 2012  846,641 397,866 1,244,507 
 Charge for year  152,874 66,978 219,852 
   ──────  ──────  ──────  
 As at 31 March 2013  999,515 464,844 1,464,359 
   ──────  ──────  ──────  
 NET BOOK VALUE     
 As at 31 March 2013  631,248 237,282 868,530 
   
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 As at 31 March 2012  827,222 177,885 1,005,107 
   = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 As at 1 April 2011  1,006,482 143,753 1,150,235 
   = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
Development costs have been internally generated. 
 
Amortisation expenses of £219,852 (2012: £234,369) have been charged to Administrative 
expenses in the Consolidated Statement of Comprehensive Income.  Development costs will be 
fully amortised within the next four years and Intellectual Property will be fully amortised within 
the next four years.   
 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
34 
13. PROPERTY & EQUIPMENT 
 
  Freehold 
property 
Furniture, 
fixtures and 
equipment 
Computer 
equipment 
Total 
  £ £  £  £  
 COST 
As at 1 April 2011  420,000 84,269 181,165 685,434 
Additions  -    10,498 80,734 91,232 
Exchange differences  -    (504) - (504) 
 ___________   ____________ ____________ ____________ 
As at 31 March 2012  420,000 94,263 261,899 776,162 
Additions  900 76,659 20,275 97,834 
Exchange differences  - (172) (177) (349) 
Disposals  - (23,418) (60,265) (83,683) 
 ____________   ____________ ____________ ____________ 
As at 31 March 2013 420,900 147,332 221,732 789,964 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
  Freehold 
property 
Furniture, 
fixtures and 
equipment 
Computer 
equipment 
Total 
  £ £  £  £  
 DEPRECIATION 
As at 1 April 2011  22,040 41,191 159,196 222,427 
Charge for year  4,408 11,332 20,882 36,622 
Exchange differences  - (5) - (5) 
 _____________  _____________ _____________ _____________ 
As at 31 March 2012 26,448 52,518 180,078 259,044 
Charge for year  4,419 10,148 37,410 51,977 
Exchange differences  - (3) (177) (180) 
Disposals - (20,787) (60,265) (81,052) 
 
_____________  _____________ ________ ________ 
As at 31 March 2013 30,867 41,876 157,046 229,789 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 NET BOOK VALUE 
As at 31 March 2013  390,033 105,456 64,686 560,175 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
As at 31 March 2012  393,552 41,745 81,821 517,118 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
As at 1 April 2011  397,960 43,078 21,969 463,007 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Included within freehold property is £199,585 (2012: £199,585) relating to land which is not 
depreciated. The net book value of computer equipment includes £33,333 (2012: £51,750) in respect of 
assets held under finance leases and hire purchase contracts. The depreciation charge in respect of 
these assets was £18,417 (2012: £6,417). 
 
Total depreciation expenses of £51,977 (2012: £36,622) have been charged to administrative expenses 
in the Consolidated Statement of Comprehensive Income.  
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
35 
14. INVENTORIES 
 
 2013 2012 
 £ £ 
Finished goods and goods for resale 548,143 410,016 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The cost of inventories recognised as an expense and included in cost of sales amounted to 
£1,332,833 (2012: £1,889,499).  During the year old inventory lines totalling £35,000 (2012: 
£40,947) were written down and charged to cost of sales in the Consolidated Statement of 
Comprehensive income.  
 
 
15. TRADE AND OTHER RECEIVABLES 
 
 2013 2012 
 £ £ 
Trade receivables 543,390 690,354 
Prepayments 99,782 92,021 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 643,172 782,375 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The analysis of trade receivables by currency is as follows: 
 2013 2012 
 £ £ 
Pound sterling 519,433 570,532 
Euro - 54,147 
Other 23,957 65,675 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 543,390 690,354 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
An allowance for impairment is made where there is an identified event which, based on previous 
experience, is evidence of a reduction in the recoverability of the outstanding amount.  The 
allowance that has been made for estimated irrecoverable trade receivables is nil  
(2012: £20,500).   
 
As at 31 March 2013 trade receivables of £192,177 were past due but not impaired.  The ageing 
analysis of these trade receivables is as follows:- 
 
      
2013 2012 
      
  
      
£ £ 
 
Up to 3 months 187,806 359,411 
 
3 to 6 months 4,371 14,721 
   
 
  
──────  ──────  
 
 
192,177 374,132 
  
 
   
══════ ══════ 
 
The Directors consider that the carrying amount of trade and other receivables approximates to 
their fair values.  The maximum exposure to credit risk at the reporting date is the carrying value 
of each class of receivable mentioned above. 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
36 
16. 
DEFERRED TAX 
 
  The analysis of deferred tax assets and deferred tax liabilities is as follows: 
      
2013 2012 
 Deferred tax asset   
£ £ 
      
  
 
Deferred tax asset to be recovered after more than 12 months 128,149 116,443 
      ──────  ────── 
      
  
 Deferred tax liability 
Deferred tax asset 
  
£ £ 
        
 
Deferred tax liability to be recovered after more than 12 months (17,859) 
(18,022) 
      ──────  ────── 
 
 
  
 
Deferred tax asset net 
110,290 98,421 
      ══════ ══════ 
 
  The movement in the deferred income tax assets and liabilities during the year is as follows:- 
 
 Deferred tax assets   Accelerated 
tax 
depreciation 
Utilisation of 
unrecognised 
losses 
Total 
     
£ £ £ 
 
As at 1 April 2012 (16,739) 133,182 116,443 
 
Charged to the income statement (6,829) 18,535 11,706 
     ────── ────── ────── 
 At 31 March 2013   
(23,568) 151,717 128,149 
     ══════ ══════ ══════ 
 
 
 Deferred tax liabilities     Building 
revaluation 
     
  £ 
 
As at 1 April 2011   (18,185) 
 
Credited to the income statement   163 
       ────── 
 At 31 March 2012   
  (18,022) 
 
Credited to the income statement   163 
       ────── 
 
At 31 March 2013   (17,859) 
     
  ══════ 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
37 
17. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES  
 2013 2012 
 £ £ 
Trade payables 684,417 429,574 
Taxation and social security 146,277 136,333 
Other payables 14,400 14,801 
Accruals and deferred income 687,255 669,964 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 1,532,349 1,250,672 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
The Directors consider that the carrying amount of trade payables approximates to their fair 
value. 
 
18. BORROWINGS 
 
 2013 2012 
 £ £ 
Bank loan 138,083 159,191 
Obligations under finance leases and hire purchase arrangements 
(see note 20) 
25,000 60,125 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - 
 163,083 219,316 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 2013 2012 
 £ £ 
On demand or within one year  46,740 56,223 
After one and within two years 22,402 46,740 
After two and within five years 71,377 69,269 
After five years 22,564 47,084 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 163,083 219,316 
Less: Amount due for settlement within one year (shown as current 
liabilities) (46,740) (56,223) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Amount due for settlement after more than one year 116,343 163,093 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 The bank loan is secured by a fixed and floating charge on all the assets of the Group. It is 
repayable by monthly instalments until 2019 and bears interest at a floating rate of 2.50% over 
base rate. 
 
19. PROVISIONS 
 
 2013 2012 
 £ £ 
As at 1 April 66,178 70,000 
Decrease during the year (48,508) (3,822) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - 
At 31 March 17,670 66,178 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
The provision relates to the estimated additional costs payable under the terms of the contract 
for the acquisition of the telematics assets from Vincotech Gmbh.  The costs relate to commission 
payable and have been estimated based on the anticipated numbers of units that will be sold. 
 
  Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
38 
20. OBLIGATIONS UNDER HIRE PURCHASE CONTRACTS 
 
   2013 2012 
   £ £ 
Gross hire purchase liabilities – minimum payments:   
No later than 1 year  25,000 35,125 
Later than 1 year and no later than 5 years  - 25,000 
   25,000 60,125 
Less future finance charges   - - 
Present value    25,000 60,125 
  
The present value of minimum hire purchase payments is analysed as follows: 
   2013 2012 
 £ £ 
No later than 1 year 25,000 35,125 
Later than 1 year and no later than 5 years - 25,000 
 25,000 60,125 
   
All contracts are denominated in sterling and are secured on the assets.  The fair value of the 
hire purchase obligations approximates to their carrying amount. 
 
 
21. SHARE CAPITAL 
 
 2013 2012 
 No’s  
‘000’s £  
No’s 
 ‘000’s £ 
Authorised     
Ordinary shares of 1p each 200,000 2,000,000 200,000 2,000,000 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Allotted, issued and fully paid     
Ordinary shares of 1p each 19,414 194,147 18,864 188,647 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Movement in share capital: 
   2013 2012 
 £ £ 
As at 1 April 188,647 187,647 
New shares issued  5,500 1,000 
As at 31 March 194,147 188,647 
 
The Company currently holds 370,000 Ordinary Shares in treasury representing 1.9% of the 
Company’s issued share capital. The number of 1 pence Ordinary Shares that the Company has 
in issue less the total number of treasury shares is 19,044,731.   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
39 
22. SHARE-BASED PAYMENTS 
 
Trakm8 Holdings PLC has issued options (under the Trakm8 Approved Option Scheme) to 
subscribe for ordinary shares of 1p in the Company. The purpose of the Option Scheme is to 
retain and motivate eligible employees.  
 
The exercise price and number of shares to which the options relate are as follows: 
 
Option 
Exercise 
Price 
Balance as 
at 31 March 
2012 
Granted 
during 
year 
Exercised 
during 
year 
Expired/ 
forfeited 
during the 
year 
Balance as 
at 31 March 
2013 
Grant date Option & 
expected 
Life 
(years) 
Risk 
free 
rate of 
return 
Volatility 
6p 550,000 - (550,000) - - 30/07/09 3.0 - - 
15.5p 300,000 - - - 300,000 30/04/10 3.0 3.02% 54% 
12.5p 100,000 - - - 100,000 31/07/11 3.0 3.02% 54% 
13p - 1,225,000 - - 1,225,000 30/07/12 10.0 3.02% 54% 
 
The share price was 13.5 pence on 1 May 2012 being the date of exercise of the above 550,000 
options.  The weighted average exercise price of share options which were outstanding as at 
31 March 2013 was 13.5 pence.   
 
The exercise of all share options is the closing market price on the day of grant.  A vesting period 
of 1 to 3 years is applicable according to the terms of each scheme. 
 
The fair value of the equity settled share options granted is estimated as at the date of grant 
using the Black Scholes option pricing model taking into account the terms and conditions upon 
which the options were granted.  The volatility has been based on historic share prices and the 
dividend yield has been assumed to be 0% for all schemes. 
 
The Group charged £19,659 to the Statement of Comprehensive Income in respect of Share-
Based Payments for the financial year ended 31 March 2013 (2012: £5,537). 
 
Share options exercisable at the 31 March 2013 were 400,000. 
 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
40 
23. CASH FLOWS 
 
  2013 2012 
  £ £ 
 Reconciliation of profit before tax to net cash flow from 
operating activities: 
   
 Profit before tax 37,522 83,884 
 Depreciation 54,610 36,622 
 Bank and other interest charges 2,055 4,461 
 Amortisation of intangible assets 219,852 234,369 
 Capitalised development costs (126,375) - 
 Share based payments 19,656 5,537 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 Operating cash flows before movement in working capital 207,320 364,873 
 Movement on retranslation of overseas operations (1,446) (994) 
 Movement in inventories (138,127) (150,974) 
 Movement in trade and other receivables 139,203 110,797 
 Movement in trade and other payables 276,267 (226,224) 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 Cash generated from operations 483,217 97,478 
    
 Interest paid (4,478) (5,249) 
 Interest received 2,423 788 
 Income taxes received 15,488 17,828 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 Net cash inflow from operating activities 496,650 110,845 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Cash and cash equivalents comprise cash at bank, other short-term highly liquid investments 
with a maturity of three months or less (together presented as ‘Cash and cash equivalents’ on 
the face of the balance sheet). 
 
24. FINANCIAL COMMITMENTS 
  
 At the balance sheet date, the Group had outstanding commitments for future minimum 
operating lease payments under non-cancellable operating leases, which fall due as follows: 
  
2013 2012 
 Operating Leases 
£ £  
  
  
Land and buildings   
 Within one year 17,729 17,522 
 In the second to fifth years inclusive 53,186 70,086 
   
Other   
 Within one year 86,898 34,112 
 In the second to fifth years inclusive 62,995 36,646 
 
Land and buildings under operating leases represents one lease payable by the Group which has 
an expiry date in March 2017. 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
41 
25. RELATED PARTY TRANSACTIONS 
 
Details of the remuneration and share transactions with the company of the Directors, who are 
the key management personnel of the Group, are disclosed in the Directors’ report.  
 
J Watkins was a Director and shareholder of Omitec Group Limited until 2 July 2012 when the 
Group was sold to Continental.  Omitec Limited was a wholly owned subsidiary of Omitec Group 
Limited.  Since that date Linda Watkins, wife of John Watkins, remained a Director of Omitec 
Limited but resigned on the 31 March 2013. 
 
During the year ended 31 March 2013 a total of £1,263,349 was invoiced to Trakm8 Limited by 
Omitec Limited (2012: £1,678,110) and Trakm8 Limited invoiced Omitec Limited £12,673 
(2012: £20,056).   
 
 
26. FINANCIAL INSTRUMENTS 
 
Financial risk factors 
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk 
and interest rate risk), credit risk and liquidity risk.  Where appropriate, the Group seeks to 
mitigate potential adverse effects on its financial performance. 
 
Liquidity risk 
The Group’s objective is to maintain a balance between continuity and flexibility of funding 
through the use of borrowings and financial assets with a range of maturities.  Borrowing 
facilities are monitored against the Group’s forecast requirements and it is the Group’s policy to 
mitigate the risk by maintaining undrawn overdraft facilities and cash reserves. The bank 
overdraft facility is £250,000 and as at 31 March 2013 this facility was not being utilised.   
      
Credit risk 
The Group’s principal financial assets are bank balances, cash and trade and other receivables.  
The Group’s credit risk is primarily attributable to its trade receivables and the Group attaches 
considerable importance to the collection and management of trade receivables.   The Group 
minimises its credit risk through the application of appropriate credit limits to customers based on 
an assessment of net worth and trading history with the Group.  Standard credit terms are net 30 
days from date of invoice.  Overdue trade receivables are managed through a phased escalation 
culminating in legal action.   
 
The credit risk on liquid funds is limited because the counterparties are banks with high credit-
ratings assigned by international credit-rating agencies. 
 
Significant accounting policies 
Details of the significant accounting policies and methods adopted, including the criteria for 
recognition, the basis of measurement and the basis on which income and expense are 
recognised, in respect of each class of financial asset, liability and equity instrument are disclosed 
in note 4 to the financial statements. 
 
   Trakm8 Holdings PLC 
 
NOTES TO THE FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
42 
26. FINANCIAL INSTRUMENTS (continued) 
 
Capital risk management 
 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as 
a going concern in order to provide returns for shareholders and benefits for other stakeholders 
and to maintain an optimal capital structure to reduce the cost of capital. 
 
In order to maintain or adjust the capital structure, the Group may adjust the amount of 
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to 
reduce debt. 
 
Consistent with others in the industry, the Group monitors capital on the basis of the gearing 
ratio.  This ratio is calculated as debt divided by total capital.  Debt is calculated as total 
borrowings including “current and non-current borrowings” as shown in the consolidated balance 
sheet.  Total capital is calculated as “equity” as shown in the consolidated balance sheet plus 
debt. 
 
The Group’s strategy has been to reduce gearing and to increase cash and cash equivalents.  
This has been successfully achieved through the profits generated during the year. 
 
 
  2013 2012 
  £ £ 
Total borrowings (note 18)  163,083 219,316 
    
Total equity  2,523,009 2,379,833 
    
Total capital  2,686,092 2,599,149 
Gearing ratio 
 
6% 8% 
 
Financial instruments by category 
 
Assets as per balance sheet   Loans and receivables 
  2013 2012 
  £ £ 
Trade and other receivables excluding prepayments  644,058 705,842 
Cash and cash equivalents  1,405,133 1,087,474 
  2,049,191 1,793,316 
 
 
  
Liabilities as per balance sheet 
 
Financial liabilities at 
amortised cost 
  2013 2012 
  £ £ 
    
Borrowings (excluding finance lease liabilities)  138,083 159,191 
Hire purchase  25,000 60,125 
Trade and other payables excluding statutory liabilities  1,386,072 1,114,339 
  1,549,155 1,333,655  Trakm8 Holdings PLC 
 
PARENT COMPANY BALANCE SHEET 
as at 31 March 2013 
 
 
43 
Company Number 05452547 
 
    
 Notes 2013 2012 
  £ £ 
FIXED ASSETS    
Investments 3 801,782 801,782 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - 
CURRENT ASSETS 
Debtors  4 150,005 894,364 
Cash at bank 1,049,958 312,375 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - 
 1,199,963 1,206,739 
   
CREDITORS: Amounts falling due within one year 5 (42,455) (34,134) 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - 
NET CURRENT ASSETS 1,157,508 1,172,605 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - 
NET ASSETS 1,959,290 1,974,387 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
CAPITAL AND RESERVES 
Called up share capital  6 194,147 188,647 
Share premium 7 1,751,152 1,723,652 
Profit and loss account 7 13,991 62,088 
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
SHAREHOLDERS’ FUNDS   1,959,290 1,974,387 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
 
These financial statements were approved by the Directors and authorised for issue on 28 June 2013 
and are signed on their behalf by: 
 
 
 
 
 
 
J Watkins       J Hedges 
Director        Director 
   Trakm8 Holdings PLC 
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS 
for the year ended 31 March 2013 
 
 
44 
Company Number 05452547 
 
1. ACCOUNTING POLICIES 
 
 BASIS OF ACCOUNTING 
 
 The financial statements have been prepared under the historical cost convention in accordance 
with the applicable accounting standards. 
 
SHARE-BASED PAYMENTS 
 
The company has applied the requirements of FRS 20 Share-based Payments. In accordance 
with the transitional provisions, FRS 20 has been applied to all grants of equity instruments after 
7 November 2002 that were unvested as of 1 April 2006.  
 
The Company issues equity-settled share-based payments to certain employees. Equity-settled 
share-based payments are measured at fair value at the date of grant. The fair value determined 
at the grant date of equity-settled share-based payments is expensed on a straight-line basis 
over the vesting period, based on the Company’s estimate of shares that will eventually vest. 
 
The fair value is measured by use of the Black-Scholes option pricing model. The expected life 
used in the model has been adjusted, based on management’s best estimate, for the effect of 
non-transferability, exercise restrictions, and behavioural considerations. No expense is 
recognised for awards that do not ultimately vest.  
 
FINANCIAL INSTRUMENTS 
 
Financial liabilities and equity instruments are classified according to the substance of the 
contractual arrangements entered into. Instruments issued by the Company are recorded at the 
proceeds received, net of direct issue costs. 
 
INVESTMENTS 
 
 Fixed asset investments are stated at cost less impairment against the cost of investments. The 
carrying values of investments in subsidiaries are reviewed for impairment if events or changes 
in circumstances indicate the carrying value may not be recoverable. 
 
FOREIGN CURRENCIES 
 
Foreign currency assets and liabilities are converted to sterling at the rates of exchange ruling at 
the end of the financial year. Transactions in foreign currencies are converted to sterling at the 
rates of exchange ruling at the transaction date. All of the resulting exchange differences are 
recognised in the profit and loss account as they arise. 
  
DEFERRED TAXATION 
 
 Provision is made for deferred taxation in respect of all material timing differences that have 
originated but not reversed by the balance sheet date. Timing differences represent differences 
between gains and losses recognised for tax purposes in periods different from those in which 
they are recognised in the financial statements. No deferred tax is recognised on permanent 
differences between the Company’s taxable gains and losses and its results as stated in the 
financial statements.  Deferred tax assets and liabilities are included without discounting.  
 
 
  Trakm8 Holdings PLC 
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
45 
 
2. PROFIT AND LOSS ACCOUNT 
 
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the 
Company is not presented as part of these financial statements. 
 
The (loss)/profit after tax for the year in the Company is (£9,829) (2012: Profit £2,953).   
 
3.     INVESTMENTS 
 
  Subsidiaries 
Cost   £ 
At 1 April 2012 and 31 March 2013 801,782 
  = = = = = = = = = = = = = = = = = = = = = = 
 
Name of subsidiary 
Country of 
incorporation 
Class of 
holding 
Proportion 
held and 
voting rights Nature of business 
     
Trakm8 Limited England and Wales Ordinary 
 
100% 
 
Marketing and 
distribution of vehicle 
telematics 
Trakm8 s.r.o. (formally PJsoft 
s.r.o.) 
Czech Republic Ordinary 100% Mapping services 
Interactive Projects Limited England and Wales Ordinary 100% Dormant 
Purple Reality Limited England and Wales Ordinary 100% Dormant 
 
 
4. DEBTORS 
 
   
 2013 2012 
 £ £ 
Amounts due from subsidiary undertakings 149,633 887,619 
Prepayments  372 6,745 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 150,005 894,364 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
5. CREDITORS: Amounts falling due within one year 
 
 2013 2012 
 £ £ 
Trade creditors 22,115 14,649 
Accruals and other creditors 20,340 19,485 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 42,455 34,134 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
   Trakm8 Holdings PLC 
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS (continued) 
for the year ended 31 March 2013 
 
 
 
 
Company Number 05452547 
 
 
 
46 
6. SHARE CAPITAL 
 
Details of share capital and share options are shown in notes 21 and 22 to the consolidated 
accounts above.  
 
7. RESERVES 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.    FINANCIAL COMMITMENTS 
 
At the balance sheet date, the company had outstanding commitments for future minimum 
operating lease payments under non-cancellable operating leases, which fall due as follows: 
  
2013 2012 
 Operating Leases 
£ £  
  
  
Motor Vehicles   
 Within one year 4,464 - 
 In the second to fifth years inclusive 6,325 - 
 
 
 
 
9.    RELATED PARTIES 
 
The Company has taken advantage of the exemptions conferred by FRS 8 from the requirement 
to disclose transactions between wholly owned subsidiary undertakings.   
 Share Capital Share 
premium 
Profit and  
loss reserve 
Total 
 £ £  £ £  
At 1 April 2011 187,647 1,719,402 53,598 1,960,647 
Shares issued 1,000 4,250  5,250 
FRS20 Share based payments - - 5,537 5,537 
profit for the year - - 2,953 2,953 
At 1 April 2012 188,647 1,723,652 62,088 1,974,387 
Shares issued 5,500 27,500 - 33,000 
FRS20 Share based 
payments  
 
- - 19,656 19,656 
Purchase of own shares - - (57,924) (57,924) 
Loss for the year - - (9,829) (9,829) 
 ---------------------- ---------------------- --------------------- ------------------------- 
As at 31 March 2013 194,147 1,751,152 13,991 1,959,290 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =