2008 1 trakm8 holdings plc
contents
2 officers and advisers
3 highlights
4 chairman’s statement
5 chief executive officer’s review
7 products and market
9 directors’ report
11 corporate governance
13 directors’ remuneration report
16 statement of directors’ responsibilities
17 independent auditor’s report to the members of trakm8 holdings plc
18 consolidated income statement
18 consolidated statement of recognised income and expense
19 consolidated balance sheet
20 consolidated cashflow statement
21 notes to the consolidated financial statements
44 parent company balance sheet
45 notes to the parent company financial statements 2 trakm8 holdings plc
officers and advisers
”
directors
c d buck
c p knapton
m cowley
t cowley
t couling
j watkins
secretary
c giles
registered office
lydden house
wincombe business park
shaftesbury
dorset
sp7 9qj
bankers
hsbc bank plc
165 high street
southampton
so14 2nz
auditor
baker tilly uk audit llp
chartered accountants
hartwell house
5561 victoria street
bristol
bs1 6ad
financial public relations
tavistock communications
131 finsbury pavement
london
ec2a 1nt 3 trakm8 holdings plc
highlights
year ended 31 march 2008 year ended 31 march 2007
£000’s £000’s
cost
revenue 4656 6370
gross profit 2024 2490
gross profit  435 391
other income 79 
operating loss  profit 891 115
loss  profit on ordinary activities before taxation 958 90
net cash and cash equivalents 153 439
net assets 1572 1483
financial highlights
• gross profit  up 44
• turnover down 27 at £467m
• loss before tax of £090m
• net assets increased to £157m 2007 £148m
• net cash of £015m 2007 £044m
operational highlights
• acquisition of pjsoft
• launch of t6
• government grant projects commenced 4 trakm8 holdings plc
chairman’s statement
overview
the past 12 months has been demanding for
the group as we continue the
transformation strategy from pure telematics
hardware design and manufacture to an
integrated telematics service provider
the headline operating result set out in this
report whilst disappointing reflects the
challenges we have faced over the last year
nevertheless margins are holding and whilst
we have not achieved profitability this year
the directors’ believe that the group is on
track to generate shareholder value
the group remains committed to its
transition to a fully integrated telematics
service provider tsp and i believe we are
firmly on track to achieve this revenue and
operating profit declined in the first half due
to a period of brand impact from our
reported supplier issue april 2007 and a
delay in orders as customers waited for the
t6 launch these two identified issues were
compounded in the second half by a sharp
decline in the eurogbp exchange rate which
increased the cost of the group’s proprietary
hardware platforms by 11 on average an
increase which has not been passed on to
customers additionally whilst initially
seeing an increase in sales from trakm8
swift® during the first half of the year sales
growth slowed in the latter half
in seeking to mitigate the impact of these
latter two events the group was mindful of
considerable interest in an early launch of t6
however the directors took the practical
view that it was inadvisable to bring forward
the planned march 2008 launch of the t6
product without incurring additional
technical risk to a new platform
nevertheless the group recognised the need
to address the sales strategy of the group
and therefore accelerated the recruitment of
a senior sales professional and i am pleased
to report that the recruitment process was
successfully concluded in january with
encouraging results to date
the board
as announced late april 2007 tim evans
the strategy and marketing director resigned
from the board to pursue other
opportunities there is no current intention
to appoint a replacement
the group also announced on 2 june 2008
that tim couling the group’s finance
director was stepping down for personal
reasons and would leave the board and the
company later in the year the board has
identified a replacement whose
appointment is expected to be announced
when tim formally leaves the position on
behalf of the board i would like to thank tim
for his hard work over the last four years and
wish him well for the future
outlook
the executive team remain fully committed
to the delivery of higher margin sales growth
and a return to profitability the group will
continue to develop our business and as
noted at half year will continue to examine
expansion by acquisition organically or other
means i would like to close by thanking all
trakm8 personnel for their continued
commitment to the group over the last year
dawson buck
chairman
the executive team
remain fully committed
to the delivery of
higher margin sales
growth and a return to
profitability
dawson buck
chairman
“
” 5 trakm8 holdings plc
chief executive officer’s review
i believe that
the combination of
revitalised organic sales
direction and rd
leadership positions the
group for improved
financial performance
in the coming year
cary knapton
chief executive officer
“
”
introduction
the last year has seen the group continue to
develop its service offerings centred on
enhancements to trakm8 swift® the
group has also been successful in securing
participation in two government grant
funded rd projects the acquisition of
pjsoft sro pjsoft has also proved positive
for the group increasing our rd capability
at an important time in late march 2008
the group launched our newest hardware
platform the trakm8 t6 t6 which
represents a significant step forward in high
functionality low cost telematics hardware
during the second half of the year the group
was successful in recruiting a senior sales
professional to head up group sales initial
indications are very positive and recent sales
performance shows an encouraging trend
this dedicated sales leadership role fills an
important position within the business and
the directors are confident that renewed
focus in this area will yield significant
benefits this is a pivotal role as the group’s
transition strategy continues and new
products and services are delivered to market
operational review
trakm8 continues the transformation
journey to fully integrated tsp which we
began over a year ago the launch of our
next generation platform the t6 which was
rolled out in late march 2008 brings further
improvement to the group’s competitive
edge in terms of functionality form factor
and ease of installation
the markets in which the group operates
have proved challenging in the year with
strong competition emerging across the
product range revenue has declined over
the year in part due to continued brand
impact from our reported supplier issue
april 07 having an extended impact on
hardware sales another factor affecting
sales performance was the evidenced delay
in orders as customers appeared to wait for
the launch of the t6
these factors have been compounded by a
strengthening of the euro in the second half
year which has pushed the group’s cost of
hardware up correspondingly this latter
change together with the weakening of the
us dollar has substantially reduced the
group’s competitiveness in dollar
denominated countries principally the
united states of america “us”
concurrent to this the group was notified by
its major us customer that it was ceasing to
take our product for competitive reasons
which resulted in the group losing significant
but low margin hardware sales in the us
as a result the group has unfortunately not
been profitable this year
strategy
the group’s strategic transition to a fully
integrated tsp remains on course achieving
success means closely interweaving the
threads of innovative rd with excellence in
sales and thereby delivering sustainable
growing profitability the group is some
way down this road and success is in sight
as a result of the acquisition of pjsoft and
our involvement in the government
sponsored projects the group’s rd activities
have been significantly scaled up this rd
effort is expected to allow for early
commercial exploitation of various project 
customer lead initiatives in areas such as
driver behaviour monitoring duty of care
and vehicle emissions monitoring as well as
in the data management software area
the government sponsored projects bring
together leading industry players in our
sector with academia and major transport
data users the group’s selection by the
technology strategy board tsb to lead the
trusted road users – emissions profiling
project is further clear evidence that the
group can effectively shape and lead major
advanced telematics rd programmes and is
a major sign of confidence in the group in
addition the group’s participation in the
future intelligent transport systems –
freeflow project places us close to major
regional initiatives in road tolling congestion
charging and vehicle workplace safety 6 trakm8 holdings plc
the group’s transition to integrated tsp
continues to move forward though now
reinforced with the increased value that
these collaborative rd programmes bring
additionally the recruitment of the senior
sales professional has enabled greater sales
focus and increasing sales leadership within
the group thus the transition strategy for
the business is strengthened and i am
confident that the group is entering the final
phase of this difficult but necessary period
financial review
this is the first full year we have had
to prepare our financial statements
under international financial reporting
standards ifrs
revenue for the year ended 31 march 2008
was £466m 2007 £637m a decrease of
268 gross profit decreased to £202m
2007 £249m gross margins have
increased to 435 2007 391
increased administrative expenses of £299m
2007 £238m have resulted in the group
announcing a loss on ordinary activities
before taxation for the period of £096m
2007 profit £009m
in the second half of the year the
strengthening of the euro has had a
corresponding increase in the cost of the
group’s hardware the net increase in
hardware costs directly attributable to
exchange rate fluctuations in the second half
of the year was between 86 and 133
depending on product the group has not
passed on this increase to customers
the group is encouraged to note that whilst
operating in a relatively competitive industry
our products are not materially suffering
from the continued pricing and margin
pressures that we have experienced in the
past trakm8 swift® has seen somewhat
slower sales growth than anticipated
however the directors perceive this to be due
to an increased number of competitors with
consequential increased order closure
timescales nevertheless in likeforlike sales
situations trakm8 swift® remains
competitive and it is the group’s firm belief
that a proportion of the reported revenue
shortfall is therefore likely to have been
delayed but not lost
the group responded to the revenue
shortfall with a review of operating
expenses which had increased in the period
primarily due to trakm8 swift® service and
airtime costs nonimpacting savings were
therefore identified which included a
reduction in contract staff and a necessary
reduction in permanent headcount thereby
reducing core overheads the group
however was able to bring forward elements
of the international rollout of trakm8
swift® through the unexpected availability
of key incountry personnel the resultant
necessary costs of setup in country
although mitigated wherever possible
largely negated the anticipated savings from
the review of operating expenses
in summary therefore the operating losses
reported above were primarily due to slower
than planned recovery in sales from the
period of brand impact the flatter sales
profile of trakm8 swift® international
launch costs and the significant
strengthening of the eurogbp and usdgbp
exchange rates
acquisition of pjsoft sro
as announced on 7 august 2007 the group
acquired pjsoft a czech software house
with significant expertise in cartographic
technologies this acquisition brought the
last external elements of our product
intellectual property inhouse and allows the
group to further leverage our software
offerings in a cost effective manner as
noted at the time pjsoft had a close working
relationship with the group and no
significant integration issues were
anticipated i am pleased to report that no
significant integration issues have been
encountered and pjsoft are currently
preparing for the launch of trakm8 swift®
into the czech republic and eastern europe
outlook
the transition strategy is on course for
completion in the coming financial year and
i believe that this strategic shift for the group
will be enhanced by our participation in the
government sponsored projects which we
announced in december 2007 and march
2008
i believe that our products and services now
span the telematics value chain and the
group expects to derive revenues from all
areas of the portfolio our supplier and
customer agreements demonstrate the
group’s commitment and confidence in our
products and service offerings our
enhanced and renewed sales focus together
with our collaborative rd programme will
cement the transition of the business to a
fully integrated tsp  we expect that these
developments will contribute to driving the
business forward and enable the delivery of
profitability and increased shareholder value
the group continues to identify international
sales opportunities for its hardware platforms
and i am pleased to report that our pipeline
currently includes major bids in the uk
europe south africa and south america
the group is also actively pursuing
organic growth routes in other countries for
trakm8 swift®
the launch of the t6 significantly improves
our hardware product capability and the
group is well placed to capitalise on the
opportunities presenting themselves in the
market place i believe that the combination
of revitalised organic sales direction and rd
leadership positions the group for improved
financial performance in the coming year
the group therefore looks forward to the
future with enthusiasm we remain firmly
on course to complete the transition to
integrated tsp and i remain confident we will
deliver our innovative products to market
with increased success
cary knapton
chief executive officer
chief executive officer’s review
continued 7
trakm8 holdings plc
products and market
marketplace
as with previous years trakm8 has derived the
majority of its revenues from the fleet
management market and continues to
consolidate its established worldwide
presence
the primary markets for the group are the uk
europe and south africa the swift
proposition has recently been test marketed in
the usa and the group views this territory as
essential to its sales expansion strategy the
group has also maintained its presence in
ireland south america the middle east and
other locations through third party distributors
the european telematics hardware and
services market continues to develop at
varying regional rates the group perceives
the uk continuing to lead the way both in
maturity of utilisation and political leadership
the past year has seen a number of uk
competitors emerge and then fall away for a
variety of reasons the group is therefore
pleased to note that the group’s hardware and
service products have proved resilient to
competition in terms of both pricing and
functionality elsewhere in europe the benelux
countries and germany are seeing some
maturity for commercial uses of telematics
our expectation is that the continental
european market is expected to grow in a
similar vein to the uk market and the directors
believe that the group is well positioned to
access a share of this growing market
product portfolio developments
during the course of the year the group has
in partnership with tyco electronics continued
the development of its nextgeneration
advanced telematics platform the t6
t6 advanced telematics platform
launched in the last quarter of the year the
t6 family of products has been designed to
improve the group’s competitive positioning
and open up previously closed markets take
up has been encouraging with several
telematics service providers tsps impressed
by the significant improvements in standard
feature delivery coupled with the
introduction of integrated controller area
network can and fleet management
systems fms capability the t6 also allows
webbased user configuration management
and allows for overtheair commissioning
post installation in addition the t6 has full
international approvals for all major markets
and full backward compatibility with past
group products
building on trakm8’s reputation for feature
rich reliable products t6 now also delivers
advanced integration functionality connecting
with vehicle management systems as well as
other tracking and business process
management software applications
evolving the proposition
the last year has seen a number of important
steps in the evolution of the group’s service
propositions
during the course of the year the group has
also been successful in securing a number of
licensing contracts for the trakm8 swift®
software platform and the directors believe
that there are further opportunities in this area
the group is confident that other market
segments such as retail logistics 
distribution central  local government and
construction will soon start to recognise the
benefits that telematics can bring to their
management of remote assets that being the
case the directors believe that the take up of
telematics propositions will increase and that
the group’s products and services are well
positioned to tap these segments
the group has demonstrated that incremental
fuel efficiency increased profitability and
reducing risk are some of the quantifiable
benefits that can be obtained through
business use of telematics applications the
introduction of the t6 and in particular its can
and fms integration capability further increase 8 trakm8 holdings plc
the available benefits to telematics users and
place the group in a good position to increase
sales in these areas
in addition to the above opportunities the
vehicle oem market remains largely untapped
and the group believes this area is set for
sizeable growth in the coming years the t6
with its can interface is well positioned to
penetrate this area the group expects that its
partnership with omitec to further develop
can applications will unlock some early
exploitation of this segment
the group has continued to build brand
awareness primarily by having a presence at
selective trade shows our presence at the
commercial vehicle show has again proved to
be a valuable exercise with significant leads
being generated particularly for trakm8
swift® further initiatives are in the pipeline
overall the group is well placed to take
advantage of increased telematics awareness
and interest at a time of economic challenge
greater scrutiny of vehicle operational costs
and the potential environmental advantages of
improved vehicle efficiency are the key
emergent business drivers at this time trakm8
looks forward to exploiting these trends in the
future
products and market
continued 9 trakm8 holdings plc
directors’ report
the directors submit their report and
financial statements of trakm8 holdings plc
for the year ended 31 march 2008
trakm8 holdings plc is a public listed
company incorporated and domiciled in
england company number 05452547
whose shares are quoted on the alternative
investment market aim of the london
stock exchange
principal activity
the principal activity of the trakm8 group is
the marketing manufacture 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  chief executive officer’s
reports on pages 4 to 6
the directors monitor key performance
indicators kpi on a regular basis to ensure
sustained progress is made towards the
group’s overall objectives these kpi include
sales revenues margins gross and product
cash balances units despatched customer
substantial shareholding
the directors have been notified or are aware of the following interests in 3 or more of the ordinary share capital of the company excluding
directors as at 15 july 2008
service performance levels returns and
rework debtors and creditors balances
results and dividends
the group results for the year ended 31
march 2008 are shown in the income
statement on page 18 the directors do not
recommend the payment of a dividend
outlook
the outlook of the business is contained in
the chairman’s  chief executive officer’s
reports on pages 4 to 6
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
the group continues to identify exciting
technology developments in the telematics
arena these form the centre point of the
group’s product strategy and will enable the
delivery of new and enhanced products and
services in the coming year this investment
continues to complement prior year spend
on the trakm8 swift® proposition and now
includes participation in two government
sponsored projects as announced previously
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 this is
detailed in note 4 to the financial
statements
directors
the following directors have held office since
1 april 2007
c d buck
t couling
m cowley
t cowley
t d evans – resigned 24 april 2007
c p knapton
j watkins
directors and their interests
details of directors’ share interests and of
their rights to subscribe for shares are shown
in the directors’ remuneration report on
pages 13 to 15
ordinary shares at 1p each ordinary shares at 1p each
number percentage
redmayne nominees 1577748 117
pershing nominees 1169042 87
r white 965042 71
edric property and investment company and related parties 644240 48
lr nominees limited 712463 53
barclayshare nominees 524515 39
hsdl nominees 451655 33
hsbc global custody nominees uk limited 407120 30 10 trakm8 holdings plc
creditors payment policy
it is the groups 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 creditors for the parent
company at the year end represented 67
days of purchases 2007 58 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 handicapped
or disabled person
should existing employees become disabled
it is the groups 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
political and charitable donations
the group made charitable donations in the
year of £1084 2007 £ nil
financial instruments
the group raises finance through equity and
borrowings and places surplus cash on short
term deposits the primary source of
borrowings is the bank facility which is in
place for use as required
the main risks arising from the group’s
financial instruments are interest rate risk
liquidity risk credit and currency risk the
policies for managing these are reviewed by
the board
interest rate  the group uses fixed and
floating interest rates where appropriate in
order to minimise any interest rate risks
liquidity  the group operates a longterm
business and its policy is to finance it
primarily with equity and short to medium
term borrowings shortterm 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
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 have 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
auditor
a resolution to reappoint baker tilly uk
audit llp  chartered accountants as auditor
will be put to the members at the annual
general meeting
by approval of the board on 26 august 2008
dawson buck
chairman
directors’ report
continued 11 trakm8 holdings plc 11 trakm8 holdings plc
corporate governance
whilst the 2006 frc combined code “the
code” on corporate governance formally
applies only to companies listed on the
london stock exchange the group has
developed and deployed procedures to
ensure that as far as is practicable and
having regard to the size of the group it is
able to comply with most of the main
principles of the combined code as the
group expands the directors intend to
continue to develop further measures for
compliance with the combined code
the directors review the internal controls of
the group on a regular basis normally not
less than twice a year taking into
consideration the size and complexity of the
group it is the directors view that the group
does not need an internal audit function
although this is reviewed periodically
board of directors and committees
the board currently comprising four
executive directors and two nonexecutive
directors meets regularly throughout
the year
for the financial year ended 31 march 2008 the directors’ attendance at board and committee meetings has been as follows
during the reporting period tim evans
resigned as executive director on 24 april
2007 and subsequently left the company
during his contractual notice period as part
of a restructuring programme in order to
adjust the board balance between executive
and non executive directors the decision
was made not to appoint a replacement
the board of trakm8 holdings plc is
responsible for the strategic direction of the
group’s businesses the board’s specific roles
include corporate governance policy and
direction as well as strategy formation and
monitoring the achievement of the group
against the business plan the daytoday
management of the group is the
responsibility of the team of executive
directors under the ceo the board
meetings of trakm8 holdings plc cover
matters required to be covered by the boards
of the group’s subsidiary entities
the board members have operated audit
remuneration and nomination committees
throughout the period although the
nomination committee met outside of the
reporting period on the 18 april 2008 these
bodies operate under formally delegated
duties and responsibilities and seek advice
from independent third parties as the need
arises the committees have comprised of
two nonexecutive directors c d buck and
j f watkins both non executives bring
extensive and diverse commercial experience
for the benefit of the group c d buck is
considered by the board to be a fully
independent nonexecutive director
type board audit nomination remuneration
total held in period 13 20 1
t couling 12 2
m cowley 13
t cowley 11
c d buck 12 2 1
c knapton 12
j f watkins 12 2 1 12 trakm8 holdings plc 12 trakm8 holdings plc
corporate governance
continued
the audit committee is responsible for
ensuring that the group’s financial
performance is properly monitored
controlled and reported it meets and reviews
reports from the auditor on a regular basis
the finance director and other directors
attend as required the committee and the
external auditor have safeguards to avoid a
potential compromise of auditor’s objectivity
and independence these include the
adoption of a policy that segregates the
supply of audit and nonaudit services and
requires committee approval for the supply
of services such as tax services and
acquisition related due diligence
the remuneration committee’s terms of
reference include making recommendations
on directors’ compensation packages to
ensure that the group board enjoys and
retains an appropriate level of motivated
resources the committee engages with
external consultants as and where it is
deemed beneficial
the group has adopted and operates a share
dealing code for directors in accordance with
the requirements of the combined code
operational and internal controls
the board is ultimately responsible for the
group’s system of internal measurement and
control processes and for reviewing their
effectiveness this system is designed to
identify quantify and manage rather than
eliminate all risk and can therefore only
provide reasonable and not absolute
assurance against material misstatement
or loss
the key elements of the group’s control
system are currently
•
a comprehensive budgeting system with
an annual budget approved by the board
•
actual results compared on a monthly
basis with budgets and past results
as appropriate
•
all significant capital expenditure and
organisational changes reviewed and
approved by the board
•
the integrity and competence of
personnel to be ensured through high
recruitment standards aligned personal
objectives with associated appraisal
mechanisms and subsequent training and
personal development planning
•
a clearly defined organisation structure
•
high quality personnel being seen as an
essential part of the control environment
•
board reviews of kpi’s and periodic
assessment as to the effectiveness and
completeness of those kpi’s in relation to
the business environment
the process of monitoring and updating
internal controls and procedures and
monitoring their effectiveness continued
throughout the year
performance evaluation
during the period the remuneration and
nomination committees evaluated the
performance of the executive team along
with the individual performances of the
directors
as a result various actions and development
plans are being developed where
appropriate 13 trakm8 holdings plc 13 trakm8 holdings plc 13 trakm8 holdings plc
directors’ remuneration report
trakm8 holdings plc is an aim listed
company and is not required to produce a
directors’ remuneration report however
given the structure of the board of directors
the levels of equity held by the directors and
taking into consideration the guidance
contained within the 2006 frc combined
code on corporate governance the
company takes the view that an appropriate
level of disclosure of directors’ remuneration
is desirable the disclosures contained in this
section of the report are therefore given as
additional information only and are not
intended or required to comply with the full
listing rules requirement of london stock
exchange
directors’ remuneration policy
the remuneration policy for the executive
directors is determined by the remuneration
committee which as previously stated
consists solely of the non executive directors
the current members of the committee are
c d buck and j f watkins the committee
acts within its agreed terms of reference
within the framework of the agreed
remuneration policy the committee
determines the remuneration packages of
the executive directors including the size of
and conditions applying to awards made
under the company’s cash bonus and share
option schemes in preparation for the
annual salary review the committee met on
18 april 2007 the committee’s policy on
executive directors remuneration will
continue to apply for the year to 31 march
2009 and so far as is practicable for
future years
the committee aims to provide executive
directors’ with packages which are
sufficiently competitive to attract retain and
motivate individuals of the quality required
to achieve the objectives of the company
and thereby enhance shareholder value
each package consists of a basic salary
discretionary cash bonus and share
option plan
 of issued 1p ordinary shares  of issued
1p ordinary shares ordinary share capital at 1 apr 2007 ordinary share capital
at 31 march 2008 13517033 or on subsequent  1 1  4 7 2  4 2 3
ordinary shares date of appointment ordinary shares
c d buck    
t couling 37520 028 37520 033
m cowley 773178 572 771750 673
t cowley 759756 562 759756 662
t evans
1
 35760 031
c knapton 1717021 1270 1623021 1415
j f watkins
2
1066328 789 
directors and their interests
the present members of the board reflecting the changes that occurred during the year are as listed on page 2 the directors’ interests in the
shares of the company are detailed below
1
resigned 24 april 2007
2
beneficial interest in a self invested pension plan sipp legally held by trustees hornbuckle mitchell group plc
the directors had no interest in the share capital of the company’s subsidiary undertakings at 31 march 2008 or on the date on which these
financial statements were approved
na 14 14 trakm8 holdings plc
directors’ service contracts
after 12 months from appointment
executive directors’ service contracts provide
termination provisions of 6 months notice in
writing by either side
the service contracts for executive directors
do not provide for any predetermined
compensation amounts in the event of early
termination other than a standard payment
in lieu of notice provision applicable at the
company’s discretion
non executive directors are engaged under
letters of appointment for an initial period of
12 months subject to termination by either
party upon 3 months notice
directors’ remuneration report
continued
31 march 2008 31 march 2007
table data audited salary £ bonus £ total £ total £
executive director
c knapton 87780  87780 98500
t couling 73150 1688 74838 73833
m cowley 62700 1447 64147 67000
t cowley 60610 1399 62009 54508
t evans
resigned 24 april 2007 2479 1414 3893 59655
286719 5948 292667 353496
31 march 2008 31 march 2007
table data audited salary £ bonus £ total £ total £
non executive director
c d buck 30000  30000 24582
j watkins
appointed 29 january 2007 20000  20000 4167
a r d white
resigned 16 october 2006   31731
50000  50000 60480
directors’ remuneration
the directors’ remuneration for the year ended 31 march 2008 was
during the course of the year no director exercised any share options 15 trakm8 holdings plc 15 trakm8 holdings plc 15 trakm8 holdings plc 15 trakm8 holdings plc
directors’ remuneration report
continued
all executive and non executive directors are
subject to retirement and reelection by
shareholders in line with the company’s
articles of association the directors do not
directors’ share options
at 31 march 2008 the following options had been granted to the companys directors and remain current and unexercised
the highest share price during the year was £0340 the lowest share price during the year was £0225 the closing price of the companys shares
on 31 march 2008 was £0225 2007 £0250
receive any pension entitlement through
their appointment to the board of the
company
appointment contract
date date
executive director
t couling 20102005 24112005
m cowley 20102005 24112005
c knapton 20102005 24112005
t cowley 26052006 26052006
non executive director
c d buck 23022006 23022006
j f watkins 29012007 29012007
option balance as at granted exercised expired balance as at expiry date
exercise 31 march during year during year forfeited 31 march
price 2007 during year 2008
t couling £025 25750  25750 31 march 2010
£026 114725 114725 31 march 2010
m cowley £025 25750   25750 31 march 2010
t cowley £025 10000  10000 31 march 2010
£026 20305 20305 31 march 2010
c knapton £025 37080   37080 31 march 2010 16 trakm8 holdings plc 16 trakm8 holdings plc 16 trakm8 holdings plc
the directors are responsible for preparing
the annual report and the financial
statements in accordance with applicable law
and regulations
uk company law requires the directors to
prepare group and company financial
statements for each financial year under
that law the directors are required to prepare
group financial statements in accordance
with international financial reporting
standards ifrs as adopted by the eu and
have elected 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 1985
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
the company financial statements are
required by law to give a true and fair view
of the state of affairs of the company
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 estimates that are
reasonable and prudent
c for the group financial statements state
whether they have been prepared in
accordance with ifrss 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
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
proper accounting records which disclose
with reasonable accuracy at any time the
financial position of the company and to
enable them to ensure that the financial
statements comply with the requirements of
the companies act 1985 they are also
responsible for safeguarding the assets of
the group 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
companys website
legislation in the united kingdom governing
the preparation and dissemination of
financial statements may differ from
legislation in other jurisdictions
statement of directors’ responsibilities in
the preparation of financial statements 17 trakm8 holdings plc
independent auditor’s report to the
members of trakm8 holdings plc
we have audited the financial statements on
pages 18 to 47
this report is made solely to the company’s
members as a body in accordance with
section 235 of the companies act 1985 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 auditor
the directors’ responsibilities for preparing
the annual report and the group financial
statements in accordance with applicable
law and international financial reporting
standards ifrss as adopted by the
european union “eu” and for preparing
the parent company financial statements in
accordance with applicable law and united
kingdom accounting standards united
kingdom generally accepted accounting
practice are set out in the statement of
directors’ responsibilities
our responsibility is to audit the financial
statements in accordance with relevant legal
and regulatory requirements and international
standards on auditing uk and ireland
we report to you our opinion as to whether
the financial statements give a true and fair
view and whether the financial statements
have been properly prepared in accordance
with the companies act 1985 we also
report to you whether in our opinion the
information given in the directors’ report is
consistent with the financial statements the
information given in the directors’ report
includes that specific information presented
in the chairman and chief executive officer’s
reports that is cross referenced from the
review of business and outlook sections of
the directors’ report
in addition we report to you if in our
opinion the company has not kept proper
accounting records if we have not received
all the information and explanations we
require for our audit or if information
specified by law regarding directors’
remuneration and other transactions is
not disclosed
we read other information contained in the
annual report and consider whether it is
consistent with the audited financial
statements this other information
comprises only the highlights the
chairman’s statement the chief executive
officer’s review products  market
directors’ report the corporate
governance report and the directors’
remuneration report we consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the financial
statements our responsibilities do not
extend to any other information
basis of audit opinion
we conducted our audit in accordance with
international standards on auditing uk and
ireland issued by the auditing practices board
an audit includes examination on a test basis
of evidence relevant to the amounts and
disclosures in the financial statements it also
includes an assessment of the significant
estimates and judgements made by the
directors in the preparation of the financial
statements and of whether the accounting
policies are appropriate to the group’s and
company’s circumstances consistently applied
and adequately disclosed
we planned and performed our audit so as
to obtain all the information and
explanations which we considered necessary
in order to provide us with sufficient
evidence to give reasonable assurance that
the financial statements are free from
material misstatement whether caused by
fraud or other irregularity or error in forming
our opinion we also evaluated the overall
adequacy of the presentation of information
in the financial statements
opinion
in our opinion
•
the group financial statements give a
true and fair view in accordance with
ifrss as adopted by the european union
of the state of the group’s affairs as at 31
march 2008 and of its loss for the year
then ended
•
the parent company financial statements
give a true and fair view in accordance
with united kingdom generally
accepted accounting practice of the
state of the parent company’s affairs as
at 31 march 2008
•
the financial statements have been
properly prepared in accordance with the
companies act 1985 and the information
given in the directors’ report is
consistent with the financial statements
emphasis of matter – going concern
in forming our opinion on the financial
statements which is not qualified we have
considered the adequacy of the disclosure
made in note 4 to the financial statements
concerning the groups ability to continue as
a going concern the group incurred a net
loss of £901165 during the year ended 31
march 2008 and as of that date the
groups current liabilities exceeded its
current assets by £197286 these
conditions along with the other matters
explained in note 4 to the financial
statements indicate the existence of a
material uncertainty which may cast
significant doubt about the groups ability to
continue as a going concern the financial
statements do not include the adjustments
that would result if the group was unable to
continue as a going concern
baker tilly uk audit llp
registered auditor
chartered accountants
hartwell house
5561 victoria street
bristol bs1 6ad
26 august 2008 18 trakm8 holdings plc
consolidated income statement
for the year ended 31 march 2008
consolidated statement of recognised
income and expense
for the year ended 31 march 2008
notes 2008 2007
£ £
continuing operations revenue 6 4656124 6370007
cost of sales 2631725 3879599
gross profit 2024399 2490408
other income 7 78779 
2103178 2490408
administrative expenses 2994453 2375739
loss  profit from operations 7 891275 114669
finance income 9547 15052
881728 129721
finance costs 8 76561 39301
loss  profit before taxation 958289 90420
income tax 9 57124 18309
loss  profit for year attributable to equity
shareholders of parent 22 901165 108729
earnings  loss per ordinary share pence
basic eps 11 76 10
diluted eps 11 76 09
2008 2007
££
exchange differences on translation of overseas operations 202930 
net income for the year directly recognised in equity 202930 
loss  profit for the year 901165 108729
total recognised expense  income for the year 698235 108729
attributable to the equity holders of the parent company 19 trakm8 holdings plc
consolidated balance sheet
as at 31 march 2008
notes 2008 2007
£ £
noncurrent assets
intangible assets 12 1597781 822635
property plant and equipment 13 478061 508931
2075842 1331566
current assets
inventories 15 146027 332522
trade and other receivables 16 809751 1272057
current tax assets 32902 
cash and cash equivalents 363371 708588
1352051 2313167
current liabilities
bank overdrafts 19 210280 269294
bank and other loans 19 50269 49209
trade and other payables 18 1287183 950477
obligations under finance leases and hire purchase arrangements 20 1605 12188
current tax liabilities  25091
1549337 1306259
current assets less current liabilities 197286 1006908
total assets less current liabilities 1878556 2338474
non current liabilities
bank and other loans 19 287470 837718
deferred tax liabilities 17 18674 17805
net assets 1572412 1482951
equity
share capital 21 135170 114724
share premium account 22 1256334 754279
shares to be issued 22 246032 
merger reserve account 22 509837 509837
share based payment reserve 22 47787 28624
translation reserve 22 202930 
retained earnings 22 825678 75487
total equity attributable to the equity shareholders 1572412 1482951
of the parent
these financial statements were approved by the directors and authorised for issue on 26 august 2008 and
are signed on their behalf by
c d buck t couling
director director 20 trakm8 holdings plc
consolidated cash flow
statement
for the year ended 31 march 2008
notes 2008 2007
£ £
net cash inflow from operating activities 24 238909 425622
investing activities
purchases of property plant and equipment 23153 71203
proceeds on disposal of property plant and equipment 1479 999
expenditure on product development 124094 220420
acquisition of subsidiary net of cash acquired 319573 189475
net cash used in investing activities 465341 480099
financing activities
repayment of loans 59771 244565
issue of loan stock  500000
net cash used infrom financing activities 59771 255435
net decreaseincrease in cash and cash equivalents 286203 200958
cash and cash equivalents at beginning of year 439294 238336
cash and cash equivalents at end of year 153091 439294
cash and cash equivalents comprise ‘cash and cash equivalents’ and ‘bank overdrafts’ 21 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008
1 general information
trakm8 holdings plc is a public limited
company “company” incorporated in
the united kingdom under the companies
act 1985 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 alternative investment market “aim”
the group’s principal activity is the
marketing manufacture 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 1985 applicable to
companies reporting under ifrs
3 basis of preparation
these are the group’s first financial
statements prepared under ifrs and ifrs 1
“first time adoption of international
financial reporting standards” has been
applied the last financial statements under
uk generally accepted accounting principles
“uk gaap” were for the year to 31 march
2007 and the comparatives have been
restated to comply with ifrs the transition
from uk gaap to ifrs is explained in note 28
the accounting policies set out in note 4
have been applied consistently to all periods
presented in these consolidated financial
statements and in preparing an opening
balance sheet at 1 april 2006 for the
purposes of transition to ifrs
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
from these financial statements the group
decided for operational reasons to reclassify
licence fees paid from cost of sales to
operating expenses the 2007 comparatives
have been adjusted to similarly reclassify the
licence fees paid
going concern
these financial statements have been
prepared on a going concern basis the
directors believe that the group has
sufficient funds for the foreseeable future
and have an expectation of improved trading
for the coming year based on these
assessments the directors are confident that
the current year losses shown on the income
statement and the net current liabilities
shown on the balance sheet are exceptional
rather than indicative of any long term trend
during the year the group incurred a loss
after tax of £901165 and ended the year
with net current liabilities of £197286 in
preparing these financial statements on a
going concern basis the directors considered
the group’s overall financial position and its
strategy and made a number of decisions to
refocus the activities of the group the
directors have prepared detailed forecasts
which set out the ongoing cash
requirements of the business taking into
account such items as anticipated trading
performance rd government grant
funding relevant currency exchange rates
and including planned manufacturing
efficiencies there are inherent uncertainties
in the preparation of such forecasts where
elements of such forecasts are not fully
under the group’s control nevertheless the
directors believe that the assumptions used
in these forecasts are reasonable and that
they have taken into account all factors
which may reasonably be expected to be
identified in the preparation of such
forecasts based on these forecasts and
monthly management accounts to the date
of these statements the directors are
confident that it is appropriate to prepare
the financial statements on the going
concern basis and the financial statements
do not include any adjustments that would
result from the group not being able to meet
its liabilities as they fall due
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 income statement from the
effective date of acquisition or up to the
effective date of disposal as appropriate
all intragroup 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 22 trakm8 holdings plc
liabilities incurred or assumed at the date of
exchange plus costs directly attributable to
the acquisition 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 ie discount
on acquisition is recognised directly in the
income statement
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
sharebased payments
the group has applied the requirements of
ifrs 2 sharebased 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 equitysettled sharebased
payments to certain employees equity
settled sharebased payments are measured
at fair value at the date of grant the fair
value determined at the grant date of equity
settled sharebased payments is expensed on
a straightline 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
blackscholes option pricing model the
expected life used in the model has been
adjusted based on management’s best
estimate for the effect of nontransferability
exercise restrictions and behavioural
considerations no expense is recognised for
awards that do not ultimately vest
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 recognised and carried
at original invoice amount less provision for
impairment a provision for impairment is
established when there is objective evidence
that the group will not be able to collect all
amounts due the impairment is recognised
in the income statement
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
cashflow 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
interestbearing 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 accrual
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 recognised at original
invoice amount
convertible loan notes
convertible loan notes are regarded as
compound instruments consisting of a
liability component and an equity
component at the date of issue the fair
value of the liability component is estimated
using the prevailing market interest rate for
similar nonconvertible debt the difference
between the proceeds of the issue of the
convertible loan notes and the fair value
assigned to the liability component
representing the embedded option to
convert the liability into equity of the group
is included in equity
issue costs are apportioned between the
liability and equity components of the
convertible loan notes based on their relative
carrying amounts at the date of issue the
portion relating to the equity component is
charged directly against equity
the interest expense on the liability
component is calculated by applying the
prevailing market interest rate for similar
nonconvertible debt to the liability
component of the instrument the
difference between this amount and the
interest paid is added to the carrying amount
of the convertible loan note
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 income statement 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
intangible assets other than
goodwill
an intangible asset which is an identifiable
nonmonetary 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 an annual impairment
review is undertaken on all intangible assets
and any impairment identified is charged to
the income statement such intangible
notes to the financial statements
for the year ended 31 march 2008 continued 23 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
assets are carried at cost less amortisation
amortisation is charged to ‘administrative
expenses’ in the income statement on a
straight line basis over the intangible assets’
useful economic life 110 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 straightline 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
income statement
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 25 reducing
and equipment balance
computer 33 straight line
equipment
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
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 noncurrent amounts the
interest elements of future obligations under
finance leases are charged to the income
statement 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
income statement 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 income statement 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
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 income
statement 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 24 trakm8 holdings plc
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 such assets and
liabilities are not recognised if the temporary
difference arises from the initial recognition of
goodwill or from the initial recognition other
than in a business combination of other
assets and liabilities in a transaction which
affects neither the taxable profit nor the
accounting profit
deferred tax liabilities are recognised for
taxable temporary differences arising on
investments in subsidiaries and associates and
interests in joint ventures except where the
group is able to control the reversal of the
temporary difference and it is probable that
the temporary difference will not reverse in
the foreseeable future
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
segmental reporting
a segment is a distinguishable component of
the group that is engaged in providing
products and services as the risks and rates of
return are predominantly affected by
differences in these products and services the
primary format for reporting segment
information is based on business segments
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
 shares to be issued represents the equity
element of deferred consideration arising
on business combinations
 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
 share based payment reserve represents
the cumulative periodic charge for
outstanding commitments to equity
settled share based payments under ifrs 2
 translation reserve represents cumulative
foreign exchange gains and losses on
retranslation of overseas operations
 retained earnings represents retained
profits
notes to the financial statements
for the year ended 31 march 2008 continued
effective date to be adopted
commencing by the group
international financial reporting standards ifrs during years
ifrs 8 operating segments 01012009 31032009
ias1a amendment – presentation of financial statements 01012009 31032009
ias 23 amendment – borrowing costs 01012009 31032009
international financial reporting interpretations committee ifric
ifric 12 service concession agreements 01012008 31032009
ifric 13 customer loyalty programmes 01072008 31032010
ifric 14 ias 19 – the limit on a defined benefit asset
minimum funding requirements and their interaction 01012008 31032009
ifric 15 agreements for construction of real estate 01012009 31032009
ifric 16 hedges of a net investment in foreign operations 01012009 31032009
standards issued by the international accounting standards board iasb not effective for the current year and
not adopted by the group
the following standards and interpretations have been issued by the iasb they become effective after the current year and have not been early
adopted by the group
the impact on the group’s financial statements is not expected to be material 25 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
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 on
acquisition of subsidiaries
note 14 details the fair values ascribed by
management to the assets and liabilities
acquired by the group when it acquired the
share capital of pjsoft sro on 7 august 2007
in assessing the fair value of the intellectual
property acquired management have
considered the current and likely future
performance of pjsoft particular attention has
been paid to the potential introduction of new
products and services to the pjsoft portfolio
and the return anticipated from these and
existing product sales the directors therefore
believe that the fair value of the acquisition 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 internallygenerated
intangible aset
during the year management reconsidered
the recoverability of its internally generated
intangible asset which is included in its
balance sheet at £344514 the projects
continue to progress satisfactorily and
management continue to believe that the
anticipated revenues will enable the carrying
amount to be recovered in full
6 segmental analysis
the group’s primary segmental reporting
format is based on the group’s management
and internal reporting structure of it’s
business segments secondary information
is reported by geographical area of sales
business segments
segment results assets and liabilities include
items directly attributable to a segment as
well as those that can be allocated on a
reasonable basis unallocated items include
central overhead expenses assets and
liabilities which cannot be reasonably
allocated intersegment transactions are
conducted on an arm’s length basis in a
manner similar to transactions with third
parties
segment results include transfers between
business segments those transfers are
eliminated on consolidation segment capital
expenditure is the total cost incurred during
the period to acquire segment assets that are
expected to be used for more than one
period 26 trakm8 holdings plc
6 segmental analysis continued
notes to the financial statements
for the year ended 31 march 2008 continued
year ended 31 march 2008 telematics projects unallocated total
£ ££
segment revenue 4656124   4656124
other income  78779  78779
segment result 485527 238478 1138324 891275
finance costs   67014 67014
profitloss before tax 485527 238478 1205338 958289
income tax   57124 57124
profitloss for year 485527 238478 1180084 901165
segment assets 2419805 78779 929310 3427893
segment liabilities 705078  844259 1549337
other information
 purchase of noncurrent assets 124094  23153 147247
 depreciation and amortisation 178304  59264 237568
year ended 31 march 2007 telematics projects unallocated total
££ £
segment revenue 6370007  6370007
segment result 1337268 445520 777079 114669
finance costs  24249 24249
profitloss before tax 1337268 445520 801328 90420
income tax  18309 18309
profitloss for year 1337268 445520 783019 108729
segment assets 2335240  1309493 3644733
segment liabilities 613823  692436 1306259
other information
 purchase of noncurrent assets 220420  71203 291623
 depreciation and amortisation 114436  55574 170010
revenue other income segment assets capital expenditure
2008 2007 2008 2007 2008 2007 2008 2007
££ £ £ £ £ £ £
united kingdom 2709333 3440539 78779  2423809 3644733 147247 1077864
europe 1056139 2248965  840967  836076 
rest of the world 890652 680503  163117  
4656124 6370007 78779  3427893 3644733 983323 1077864
geographical segments
the group’s operations are located in the uk and the czech republic the following table provides an analysis of the group’s sales by geography
based upon location of the group’s customers segment assets and capital expenditure are based on the geographical location of assets
additions to capital expenditure include additions resulting from acquisitions through business combinations 27 trakm8 holdings plc
7 lossprofit from operations
notes to the financial statements
for the year ended 31 march 2008 continued
2008 2007
££
lossprofit from operations is stated after charging  crediting
other income  government grant 78779 
depreciation  owned fixed assets 52272 48467
 assets on finance leases 6992 7107
negative goodwill written off  14198
amortisation of intangible assets 178304 114436
operating lease rentals
equipment 5145 19436
land and buildings 19339 27025
research and development 43309 59470
loss on foreign exchange transactions 11106 18834
writedowns of inventories recognised as an expense 91608 
staff costs note 10 1549331 1519964
2008 2007
££
auditor’s remuneration
baker tilly uk audit llp and associates
 audit services
parent company and consolidation 8200 7000
subsidiary audits 32000 31000
 tax advisory services 15525 18129
 other services 6250 4750
2008 2007
££
bank interest payable 42404 25802
interest on loan stock 33754 12482
interest on finance leases 403 1017
76561 39301
8 finance costs 28 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
9 taxation
2008 2007
££
current tax  25091
adjustment in respect of prior period 25091 
rd tax credit 32902 47699
57993 22608
deferred tax
deferred tax charge for current year 163 4299
adjustment in respect of prior periods 1032 
tax credit 57124 18309
2008 2007
££
lossprofit on ordinary activities before tax 958289 90420
lossprofit on ordinary activities multiplied by the standard rate of corporation tax
in the uk of 30 2007 30 287487 27126
effects of
expenses not deductibleincome not taxable 56712 8499
share option adjustment 3491 6385
temporary differences 15624 1999
tax losses for which no deferred income tax asset was recognised 211497 
marginal relief  10621
adjustment in respect of previous periods 56961 47699
total tax 57124 18309
factors affecting the tax charge
the tax assessed for the years are lower than the applicable rate of corporation tax in the uk the difference is explained below 29 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
2008 2007
no no
the average monthly number of persons including directors employed by the group was
research and development 75
selling and distribution 17 8
production 12 11
administration 12 12
48 36
2008 2007
££
staff costs for the employees and directors included under administrative expenses
wages and salaries 1366380 1353197
social security costs 163788 145485
share based payments 19163 21282
1549331 1519964
2008 2007
££
directors emoluments 342667 413976
2008 2007
££
emoluments for qualifying services 87780 98500
included in the above are costs relating to directors who are the key management personnel of the group as follows
the directors in office during the year ended 31 march 2008 received no pension contributions 2007 nil
emoluments disclosed above include the following amounts paid to the highest paid director
further details of directors’ remuneration can be found in the directors’ remuneration report on pages 13 to 15
10 employees 30 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
2008 2007
££
lossprofit for the year after taxation 901165 108729
no no
number of ordinary shares of 1p each 13517033 11472423
number of ordinary shares of 1p each diluted 14096212 12596941
basic weighted average number of ordinary shares of 1p each 11926158 11175215
basic weighted average number of ordinary shares of 1p each diluted 11926158 11760871
basic lossearnings pence per share 76p 10p
diluted lossearnings pence per share 76p 09p
goodwill development costs intellectual property total
££ £ £
cost
as at 1 april 2006    
acquisition of ipl 14198  716651 702453
additions  220420  220420
charged to income 14198   14198
as at 31 march 2007  220420 716651 937071
acquisition of pjsoft   633022 633022
additions  124094  124094
exchange difference   196334 196334
as at 31 march 2008  344514 1546007 1890521
amortisation
as at 1 april 2006    
charged to income  42771 71665 114436
as at 31 march 2007  42771 71665 114436
charged to income  70742 107562 178304
as at 31 march 2008  113513 179227 292740
net book value
as at 31 march 2008  231001 1366780 1597781
as at 31 march 2007  177649 644986 822635
11 lossearnings per ordinary share
the lossearnings per ordinary share has been calculated using the lossprofit for the year and the weighted average number of ordinary shares
in issue during the year as follows
12 intangible assets
in 2008 the weighted average number of shares for the purpose of calculating the diluted earnings per ordinary share is identical to that used for
the basic earnings per ordinary share as any adjustment to the number of ordinary shares would be antidilutive
amortisation expenses of £178304 2007 £114436 have been charged in administrative expenses 31 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
freehold furniture fixtures computer total
property and equipment equipment
££ £ £
cost
as at 1 april 2006 420000 22773 44563 487336
additions  23529 47674 71203
acquired with ipl  50204 33584 83788
disposals  1141  1141
as at 31 march 2007 420000 95365 125821 641186
additions  419 22734 23153
acquired with pjsoft  20188 5038 25226
exchange differences  5582 1563 7145
disposals  4387  4387
as at 31 march 2008 420000 117167 155156 692323
depreciation
as at 1 april 2006  7779 23116 30895
charged to income 4408 16198 34968 55574
acquired with ipl  18683 27245 45928
disposals  142  142
as at 31 march 2007 4408 42518 85329 132255
charged to income 4408 15968 38888 59264
acquired with pjsoft  16718 3038 19756
exchange differences  4952 943 5895
disposals  2908  2908
as at 31 march 2008 8816 77248 128198 214262
net book value
as at 31 march 2008 411184 39919 26958 478061
as at 31 march 2007 415592 52847 40492 508931
13 plant property  equipment
included within freehold property is £199585 2007 £199585 relating to land which is not depreciated the net book value of plant and
computer equipment includes £14032 2007 £21071 in respect of assets held under finance leases and hire purchase contracts the depreciation
charge in respect of these assets was £6992 2007 £7107
total depreciation expenses of £59264 2007 £55574 have been charged in administrative expenses 32 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
book value fair value
as at august 2007 as at august 2007
££
intangible assets  633022
property plant and equipment 5470 5470
inventories 3407 3407
trade and other receivables 21326 21326
cash and cash equivalents 4672 4672
trade and other payables 4091 4091
30784 663806
goodwill 
total consideration 663806
satisfied by
cash 259259
deferred cash 93528
costs of acquisition 64986
fair value of shares issued 246033
663806
14 acquisition of pjsoft sro “pjs”
on 7 august 2007 the company acquired the entire issued share capital of pj soft sro the consideration was €385000 in cash paid to the
vendors on 7 august 2007 €150000 payable on 7 august 2008 and 340136 and 453516 ordinary shares to be allotted and issued to the
vendors on 7 august 2008 and 7 august 2009 respectively
the deferred cash consideration of €150000 has been discounted at a rate of 8 in order to arrive at the present value as at the date of
acquisition the ordinary shares have been valued at 310 pence being the mid market closing share price of trakm8 holdings at the date of
acquisition the transaction has been accounted for by the purchase method of accounting as detailed in ifrs3 business combinations
the following assets and liabilities were acquired at the date of acquisition
the results of pjs have been consolidated in the income statement for the group for the eight months from the date of acquisition to
31 march 2008
intangible assets represent intellectual property owned by pjs the directors have reviewed the fair value of these assets and revalued them at the
date of acquisition the valuation has been based on the expected licence fee income to be received over the next 10 years
pjs contributed £96277 of revenue and £13454 to the group’s loss before tax for the period between the date of acquisition and the balance sheet date
if the acquisition of pjs had been completed on the first day of the financial year group revenues for the period would have been increased by
£37278 and the group loss attributable to equity holders of the parent would have been increased by £10283 33 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
15 inventories
2008 2007
££
finished goods and goods for resale 146027 332522
2008 2007
££
trade receivables 675997 1180083
other receivables 78779 6356
prepayments 54975 55110
vat recoverable  30508
809751 1272057
2008 2007
££
euro 9566 362786
pound sterling 639934 817297
other 26497 
675997 1180083
16 trade and other receivables
2008 2007
££
as at 1 april 17805 13506
charged to income note 9 869 4299
balance at 31 march 18674 17805
revaluation of building 18674 18837
accelerated tax depreciation  1032
18674 17805
17 deferred tax
the analysis of trade receivables by currency is as follows
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 an allowance has been made for estimated irrecoverable trade receivables of £26065 2007 £ nil
trade receivables of £30745 are past due but not provided for
the directors consider that the carrying amount of trade and other receivables approximates to their fair values
at the balance sheet date the group had unused tax losses of £1079000 2007 £396396 available for offset against future profits no deferred
tax asset has been recognised in respect of this due to the unpredictability of future profit streams
the cost of inventories recognised as an expense and included in the cost of sales amounted to £2631725 2007 £3879599 34 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
2008 2007
£ £
trade payables 766337 793714
taxation and social security 89294 36426
other payables 140021 21518
accruals and deferred income 291531 98819
1287183 950477
18 current liabilities – trade and other payables
the directors consider that the carrying amount of trade payables approximates to their fair value
2008 2007
££
bank overdrafts 210280 269294
bank loan 235060 248534
dti loans 102679 138393
loan stock  500000
548019 1156221
2008 2007
££
on demand or within one year  overdraft 210280 269294
 other loans 50269 49209
after one and within two years 51415 550271
after two and within five years 86165 117878
after five years 149890 169569
548019 1156221
less amount due for settlement within one year shown as current liabilities 260549 318503
amount due for settlement after more than one year 287470 837718
19 borrowings
bank overdrafts are repayable on demand and secured by a floating charge over the assets of the group interest is payable at 25 over base
rate and the effective interest rate was 80 2007 73
the bank loan is secured by a fixed and floating charge on all the assets of trakm8 limited it is repayable by instalments of £2660 per month
until 2019 and bears interest at a fixed rate of 760
the dti loans were provided to ipl in 2006 by national westminster bank under the small firms loan guarantee scheme the two loans are each
repayable at the rate of £1488 per month and interest is payable at the rate of 35 over base rate the average effective interest rate on the
loans was 90 2007 83 during 2007 the loans were transferred to hsbc under the same terms
in january 2007 the company issued £500000 of 9 convertible unsecured loan stock on 31 december 2007 the subscribers elected to convert
their holdings into 2044610 ordinary shares which were admitted to aim on 11 january 2008 35 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
20 obligations under finance leases
all lease obligations are denominated in sterling and are secured by the lessor’s rights over the leased assets the fair value of the lease obligations
approximates to their carrying amount
on 7 august 2007 the company acquired the entire issued share capital of pjsoft sro full details of which are given in note 14 above in part
consideration the company is to issue 340136 ordinary shares on 7 august 2008 and a further 453516 ordinary shares on 7 august 2009
on 10 january 2008 the total value of the loan stock £522500 inclusive of accrued interest of £22500 was converted into 2044610 ordinary
shares of 1p each
minimum lease payments present value of minimum
lease payments
2008 2007 2008 2007
££ £ £
amounts payable under finance leases
due within one year 1655 12596 1605 12188
less future finance charges 50 408
present value 1605 12188
2008 2007
no’s ‘000’s £ no’s ‘000’s £
authorised
ordinary shares of 1p each 200000 2000000 200000 2000000
allotted issued and fully paid
ordinary shares of 1p each 13517 135170 11472 114724
21 share capital
22 reserves
share share shares to merger share based translation retained total
capital premium be issued reserve payment reserve earnings
reserve
££ £ £ ££ £ £
31 march 2006 110260 435087  509837 7342  33242 1029284
shares issued 4464 319192      323656
ifrs2 share based payments     21282   21282
profit for the year       108729 108729
as at 31 march 2007 114724 754279  509837 28624  75487 1482951
shares issued 20446 502055      522501
shares to be issued   246032     246032
exchange differences on     202930  202930
translation of overseas
operations
ifrs2 share based payments     19163   19163
loss for the year       901165 901165
as at 31 march 2008 135170 1256334 246032 509837 47787 202930 825678 1572412 36 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
option balance as at granted exercised expiredforfeited balance as at expiry date
exercise price 31 march 2007 during year during year during the year 31 march 2008
25p 291185 229450  166885 353750 31 march 2010
26p  225429  225429 30 september 2010
totals 291185 454879  166885 579179
historical volatility 89
dividend yield declared 00
riskfree interest rate 48
23 sharebased 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
24 cash flows
the group charged £19163 to the income statement in respect of sharebased payments for the financial year ended 31 march 2008 2007 £21282
the highest share price during the year was £034 the lowest share price during the year was £0225 the closing share price on 31 march 2008
was £0225 2007 £025 the exercise price of all share options is the closing market price on the day of grant
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 following table lists the inputs to the model used for the years
ended 31 march 2007 and 31 march 2008
a vesting period of 1 or 2 years is applicable according to the terms of grant
cash and cash equivalents comprise cash at bank other shortterm 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 and bank overdrafts presented as a single class of liability on the face
of the balance sheet
a reconciliation of lossprofit before tax to net cash flow from operating activities 2008 2007
££
lossprofit before tax 958289 90420
depreciation 59264 55574
bank and other interest charges 67014 24249
amortisation of intangible assets 178304 114436
negative goodwill written off  14198
share based payments 19163 21282
net loss profit before changes in working capital 634544 291763
movement on retranslation of overseas operations 5346 
movement in inventories 189902 107417
movement in trade and other receivables 483632 158967
movement in trade and other payables 261587 166421
cash generated from operations 305923 406634
interest paid 76561 39301
interest received 9547 15052
income taxes received  43237
net cash flow from operating activities 238909 425622 37 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
25 financial commitments
at the balance sheet date the group had outstanding commitments for future minimum operating lease payments under noncancellable
operating leases which fall due as follows
land and buildings under operating leases represent payables by the group on its two principle office properties the leases expire in 2010
and 2011
operating leases 2008 2007
££
land and buildings
within one year 26097 10000
in the second to fifth years inclusive 68433 34167
other
within one year 5088 13691
in the second to fifth years inclusive 5177 1673
26 related party transactions
details of the remuneration of the directors
who are the key management personnel of
the group are disclosed in note 10 above
there were no other related party
transactions
27 financial instruments
financial risk factors
the group’s activities expose it to a variety of
financial risks market risk including currency
risk interest rate risk and price risk credit
risk and liquidity risk where appropriate
the group seeks to mitigate potential
adverse effects on its financial performance
foreign exchange rate risk
the group’s principal exposure to foreign
exchange rate risk arises with the purchase
of inventory which is predominantly
denominated in euros historically the
group has not used derivative instruments to
hedge against possible risks arising from
fluctuations in foreign currency exchange
rates as the exposure is limited if foreign
currency exposure increases the use of
foreign currency hedging instruments will be
reviewed as a means of reducing the effect
of exchange rate fluctuations on the
group’s results
interest rate risk
the group mitigates its exposure to interest
rate fluctuations by using fixed rates or
interest rate derivatives where appropriate
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
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 creditratings assigned by international
creditrating 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 38 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
27 financial instruments continued
foreign currency risk
the group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate fluctuations arise
the carrying amount of the group’s foreign currency denominated monetary assets and liabilities at the reporting date is as follows
foreign currency sensitivity
the group is mainly exposed to the euro the following table details the group’s sensitivity to a 10 strengthening of the euro against gbp  this
has been determined assuming a euro rate 10 stronger than the actual rate achieved during the period
the group’s sensitivity to the euro has increased due to the reduction in sales denominated in euros during the second half of the
2008 financial year
assets liabilities
2008 2007 2008 2007
£ ££ £
euro 44824 500276 617301 532554
other 29367 115132 22491 16172
74191 615408 639792 548726
gbp 1098931 1365237 1197015 1595251
1173122 1980645 1836807 2143977
2008 2007
££
loss 89179 47134 39 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
fair values
there is no material difference between the book value and the fair value of the group’s financial assets or liabilities
27 financial instruments continued
interest rate and liquidity risk
interest rate sensitivity
the sensitivity analysis has been based on the
average exposure to floating rate debt
during the period it has been assumed that
floating interest rates were 50 basis point
higher than those actually incurred
the effect of such a change would be to
increase the loss before tax for the year by
£1565 2007 – reduce the profit before tax
by £2122
liquidity and interest risk tables
the following table details the group’s
remaining contractual maturity for its
financial liabilities the tables have been
drawn up based on the undiscounted
contractual maturities of the financial
liabilities including interest that will accrue
to maturity the discount column reflects
the adjustments necessary to reconcile to the
carrying amounts of the financial liabilities
weighted less than 13 312 15 more than discount total
average 1 month months months years 5 years
effective or on
interest rate demand
£ £ £ ££ £ £
fixed rate
bank loan 76  3536 11019 70615 149890  235060
deferred consideration 80   124416    124416
obligations under 62 138 276 1241   50 1605
finance leases
floating rate
bank overdrafts 80 210280      210280
other loans 90  8929 26785 66965   102679
trade payables  766337      766337
2008
weighted less than 13 312 15 more than discount total
average 1 month months months years 5 years
effective or on
interest rate demand
£ £ £ ££ £ £
fixed rate
bank loans 76  3279 10217 65471 169567  248534
loan stock 90    500000   500000
obligations under 67 1050 2099 9446   407 12188
finance leases
floating rate
bank overdrafts 73 269294      269294
other loans 83  8929 26785 102679   138393
trade payables  793714      793714
2007 40 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
28 reporting under international
financial reporting standards
this annual report is the first to be prepared
under ifrs the comparative figures have
been prepared on the same basis and have
therefore been restated from those
previously prepared under uk gaap  the
commentary below details the key changes
that have arisen due to the transition to
reporting under ifrs the group’s date of
transition is 31 march 2006 which is the
beginning of the comparative period for the
20062007 financial year therefore the
opening balance sheet for ifrs purposes is
that reported at 31 march 2006 as amended
for changes due to ifrs
to explain the impact of the transition
reconciliations are included below that show
the changes made to the statements
previously reported under uk gaap  the
following reconciliations are included
1 reconciliation of group balance sheet at
31 march 2006 from uk gaap to ifrs
2 reconciliation of group balance sheet at
31 march 2007 from uk gaap to ifrs
3 reconciliation of group income statement
for the year ended 31 march 2007 from uk
gaap to ifrs
the transition from uk gaap to ifrs does
not affect the cash flows generated by the
group the ifrs cash flow statement is
presented in a different format than that
required under uk gaap  the reconciling
items between the uk gaap format and the
ifrs format have no net impact on the cash
flows generated and accordingly
reconciliations have not been presented
the accounting policies used for ifrs are set
out in note 4
the group has applied the provisions of ifrs
1 – first time adoption of international
financial reporting standards which
generally requires that ifrs accounting
policies be applied retrospectively in
determining the opening balance sheet at
the date of transition ifrs 1 contains both
mandatory and optional exemptions to the
principle of retrospective application where
the group has made use of an exemption it
is noted below
the significant first time adoption choices
made by the group are as follows
•
business combinations completed prior
to 1 january 2006 have not been restated
under ifrs 3 ‘business combinations’
•
aside from freehold buildings the
opening fair values of fixed assets have
been deemed to be their accounting
values as at 31 march 2006 after
reviewing for impairment as appropriate
deemed cost for freehold buildings is
their open market value for existing use
ifrs 1 ‘first time adoption of ifrs’
the carrying values of fixed assets have been
reviewed on first time adoption of ifrs as
permitted by ifrs 1 the company has opted
to value its freehold land and buildings at
deemed cost the deemed cost has been
assessed as the open market value of the
property at transition date 1 april 2006
accordingly the opening net assets of the
group have been increased by £63331
reflecting the difference between the market
value and net book value of the property at
that date the historical cost of the property
was £368264
increased depreciation of £543 pa has been
charged to the income statement for the
years ended 31 march 2007 and 31 march
2008 to reflect the increased carrying value
ias 38 ‘intangible assets’
the fair value of intangible assets arising on
the acquisition of interactive projects limited
ipl has been revisited using the ‘relief from
royalty’ method permitted by ias38 on this
basis the value of the intellectual property
acquired as a result of the transaction in
may 2006 has been increased by £116651
to £716651 goodwill arising on
consolidation has been reduced by the same
amount resulting in negative goodwill arising
of £14198 the negative goodwill has been
written off immediately to the income
statement and the charge for amortisation
of intangible noncurrent assets has
increased by £1420 pa
accordingly net assets at 31 march 2007 and
the profit for the year then ended have been
increased by £12778 net assets at 31
march 2008 have been increased by
£11358 and the profit for the year then
ended has been decreased by £1420 there
is no impact on the balance sheet at 31
march 2006
ias 12 ‘income taxes’
under uk gaap  deferred tax is not provided
on revaluation of fixed assets unless the
entity has entered into a binding agreement
to sell the asset and has recognised the gain
expected to arise on that sale under ifrs
the entity is required to account for the
impact of deferred tax on all timing
differences
accordingly a deferred tax liability of
£19000 has been recognised at 31 march
2006 to reflect the tax arising on the
increase in carrying value of the freehold
property to its market value at that date a
tax credit of £163 pa has been charged to
the income statement for the years ended 31
march 2007 and 31 march 2008 to reflect
the increased depreciation charge arising 41 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
uk gaap under property income ifrs
ifrs presentation deemed cost taxes
£ ££ £
noncurrent assets
property plant and equipment 393110 63331  456441
393110 63331  456441
current assets
inventories 398306   398306
trade and other receivables 1065490   1065490
deferred tax 5494  5494 
cash and cash equivalents 402454   402454
1871744  5494 1866250
current liabilities
bank overdrafts 164118   164118
bank loans 12175   12175
trade payables 565683   565683
other payables 99698   99698
other loans 185091   185091
1026765   1026765
current assets less current liabilities 844979  5494 839485
total assets less current liabilities 1238089 63331 5494 1295926
noncurrent liabilities
bank loans 253136   253136
other loans    
deferred tax liabilities   13506 13506
253136  13506 266642
net assets 984953 63331 19000 1029284
equity
share capital 110260   110260
share premium account 435087   435087
shares to be issued    
merger reserve 509837   509837
share based payment reserve 7342   7342
retained earnings 77573 63331 19000 33242
total equity attributable to equity
shareholders of the parent 984953 63331 19000 1029284
reconciliation of the group balance sheet under uk gaap to ifrs at 31 march 2006 42 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
uk gaap intellectual property income ifrs
under ifrs property deemed cost taxes
presentation
££ £ £ £
continuing operations
revenue 6370007    6370007
cost of sales 3879599    3879599
gross profit 2490408    2490408
administrative expenses 2387974 12778 543  2375739
profit from operations 102434 12778 543  114669
interest receivable 15052    15052
117486 12778 543  129721
bank and other interest charges 39301    39301
profit before taxation 78185 12778 543  90420
taxation 18146   163 18309
profit for the year attributable to
equity shareholders of parent 96331 12778 543 163 108729
reconciliation of the group profit and loss account under uk gaap to the group income statement
under ifrs for the year ended 31 march 2007 43 trakm8 holdings plc
notes to the financial statements
for the year ended 31 march 2008 continued
uk gaap intellectual property income ifrs
under ifrs property deemed cost taxes
presentation
£ ££ £ £
noncurrent assets
intangible assets 809857 12778   822635
property plant and equipment 446143  62788  508931
1256000 12778 62788  1331566
current assets
inventories 332522    332522
trade and other receivables 1272057    1272057
deferred tax 1032   1032 
cash and cash equivalents 708588    708588
2314199   1032 2313167
current liabilities
bank overdrafts 269294    269294
bank loans 13495    13495
trade payables 793714    793714
other payables 156763    156763
obligations under finance leases and
hire purchase arrangements 12188    12188
current tax 25091    25091
other loans 35714    35714
1306259    1306259
current assets less current liabilities 1007940   1032 1006908
total assets less current liabilities 2263940 12778 62788 1032 2338474
noncurrent liabilities
bank loans 235039    235039
other loans 602679    602679
deferred tax liabilities    17805 17805
837718   17805 855523
net assets 1426222 12778 62788 18837 1482951
equity
share capital 114724    114724
share premium account 754279    754279
merger reserve 509837    509837
share based payment reserve 28624    28624
retained earnings 18758 12778 62788 18837 75487
total equity attributable to equity
shareholders of the parent 1426222 12778 62788 18837 1482951
reconciliation of the group balance sheet under uk gaap to ifrs at 31 march 2007 44 trakm8 holdings plc
company balance sheet
as at 31 march 2008
notes 2008 2007
£ £
fixed assets
investments 3 1285224 595519
current assets
debtors 4 47103 313679
cash at bank 294144 508347
341247 822026
creditors amounts falling due within one year 5 182747 61960
net current assets 158500 760066
total assets less current liabilities 1443724 1355585
creditors amounts falling due after more than one year 6 500000
net assets 1443724 855585
capital and reserves
called up share capital 7 135170 114724
share premium 8 1256334 754279
share based payment reserve 8 47787 28624
shares to be issued 8 246032 
profit and loss account 8 241599 42042
shareholders’ funds 1443724 855585
these financial statements were approved by the directors and authorised for issue on 26 august 2008
and are signed on their behalf by
c d buck t couling
director director 45 trakm8 holdings plc
notes to the company financial
statements continued
for the year ended 31 march 2008
1 accounting policies
basis of accounting
the financial statements have been prepared
under the historical cost convention in
accordance with the applicable accounting
standards
sharebased payments
the company has applied the requirements
of frs 20 sharebased 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 equitysettled share
based payments to certain employees
equitysettled sharebased payments are
measured at fair value at the date of grant
the fair value determined at the grant date
of equitysettled sharebased payments is
expensed on a straightline 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
blackscholes option pricing model the
expected life used in the model has been
adjusted based on management’s best
estimate for the effect of nontransferability
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
convertible loan notes are regarded as
compound instruments consisting of a
liability component and an equity
component at the date of issue the fair
value of the liability component is estimated
using the prevailing market interest rate for
similar nonconvertible debt the difference
between the proceeds of the issue of the
convertible loan notes and the fair value
assigned to the liability component
representing the embedded option to
convert the liability into equity of the
company is included in equity
issue costs are apportioned between the
liability and equity components of the
convertible loan notes based on their relative
carrying amounts at the date of issue the
portion relating to the equity component is
charged directly against equity
the interest expense on the liability
component is calculated by applying the
prevailing market interest rate for similar
nonconvertible debt to the liability
component of the instrument the
difference between this amount and the
interest paid is added to the carrying amount
of the convertible loan note
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
2 profit and loss account
as permitted by section 230 of the
companies act 1985 the profit and loss
account of the company is not presented as
part of these financial statements
the loss before tax for the year in the
company is £199557 2007 profit £2748 46 trakm8 holdings plc
notes to the company financial
statements continued
for the year ended 31 march 2008
subsidiaries
cost £
at 1 april 2007 595519
additions 689705
at 31 march 2008 1285224
3 investments
4 debtors
name of subsidiary country of class of proportion held nature of
incorporation holding and voting rights business
trakm8 limited england and wales ordinary 100 marketing and
distribution of
vehicle telematics
interactive projects limited england and wales ordinary 100 project management
and design
pjsoft sro czech republic ordinary 100 mapping services
purple reality limited england and wales ordinary 100 dormant
trakm8 inc usa ordinary 100 dormant
trakm8 pty ltd australia ordinary 100 dormant
2008 2007
££
amounts due from subsidiary undertakings 37297 291144
vat recoverable 3139 
prepayments 6667 22535
47103 313679
5 creditors amounts falling due within one year
2008 2007
££
trade creditors 46393 29987
taxation and social security  19032
accruals and other creditors 136354 12941
182747 61960 47 trakm8 holdings plc
notes to the company financial
statements continued
for the year ended 31 march 2008
6 creditors amounts falling due after more than one year
2008 2007
££
loan stock  500000
2008 2007
££
after one and within two years  500000
in january 2007 the company issued £500000 of 9 convertible unsecured loan stock on 31 december 2007 the subscribers elected to
convert at a conversion price of 2555 pence their holdings into ordinary shares of the company in line with the provisions of the agreement
7 share capital
details of share capital and share options are shown in notes 21 and 23 to the consolidated accounts above
8 reserves
share shares to share based profit total
premium be issued payment and loss
reserve account
££ £ £ £
at 1 april 2007 754279  28624 42042 740861
shares issued 502055    502055
shares to be issued  246032   246032
loss for the year    199557 199557
frs20 share based payments   19163  19163
as at 31 march 2008 1256334 246032 47787 241599 1308554
9 related parties
the company has taken advantage of the exemptions conferred by frs 8 from the requirement to disclose transactions between subsidiary
undertakings 90 or more of whose voting rights are controlled within the group 48 trakm8 holdings plc
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Summary:
 4 trakm8 holdings plc
chairman’s statement
overview
the past 12 months has been demanding for
the group as we continue the
transformation strategy from pure telematics
hardware design and manufacture to an
integrated telematics service provider
the headline operating result set out in this
report whilst disappointing reflects the
challenges we have faced over the last year
nevertheless margins are holding and whilst
we have not achieved profitability this year
the directors’ believe that the group is on
track to generate shareholder value
the group remains committed to its
transition to a fully integrated telematics
service provider tsp and i believe we are
firmly on track to achieve this revenue and
operating profit declined in the first half due
to a period of brand impact from our
reported supplier issue april 2007 and a
delay in orders as customers waited for the
t6 launch these two identified issues were
compounded in the second half by a sharp
decline in the eurogbp exchange rate which
increased the cost of the group’s proprietary
hardware platforms by 11 on average an
increase which has not been passed on to
customers additionally whilst initially
seeing an increase in sales from trakm8
swift® during the first half of the year sales
growth slowed in the latter half
in seeking to mitigate the impact of these
latter two events the group was mindful of
considerable interest in an early launch of t6
however the directors took the practical
view that it was inadvisable to bring forward
the planned march 2008 launch of the t6
product without incurring additional
technical risk to a new platform
nevertheless the group recognised the need
to address the sales strategy of the group
and therefore accelerated the recruitment of
a senior sales professional and i am pleased
to report that the recruitment process was
successfully concluded in january with
encouraging results to date
the board
as announced late april 2007 tim evans
the strategy and marketing director resigned
from the board to pursue other
opportunities there is no current intention
to appoint a replacement
the group also announced on 2 june 2008
that tim couling the group’s finance
director was stepping down for personal
reasons and would leave the board and the
company later in the year the board has
identified a replacement whose
appointment is expected to be announced
when tim formally leaves the position on
behalf of the board i would like to thank tim
for his hard work over the last four years and
wish him well for the future
outlook
the executive team remain fully committed
to the delivery of higher margin sales growth
and a return to profitability the group will
continue to develop our business and as
noted at half year will continue to examine
expansion by acquisition organically or other
means i would like to close by thanking all
trakm8 personnel for their continued
commitment to the group over the last year
dawson buck
chairman
the executive team
remain fully committed
to the delivery of
higher margin sales
growth and a return to
profitability
dawson buck
chairman
“
”