company number 05452547 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
trakm8 holdings plc 
 
report and financial statements 
 
for the year ended  
 
31 march 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  trakm8 holdings plc 
 
contents 
 
 
 
 
1 
company number 05452547 
 
 
 
2 officers and advisers 
 
3 highlights 
 
4 chairman’s statement 
 
5 ceo’s statement 
 
8 directors’ report 
 
13 statement of directors’ responsibilities 
 
14 independent auditors’ report to the members of 
trakm8 holdings plc 
 
16 consolidated statement of comprehensive income 
 
17 consolidated statement of changes in equity 
 
18 consolidated statement of financial position 
 
19 consolidated statement of cash flows 
 
20 notes to the consolidated financial statements 
 
43 parent company balance sheet 
 
44 notes to the parent company financial statements 
 
  trakm8 holdings plc 
 
officers and advisers 
 
 
 
 
company number 05452547 
 
 
 
2 
 
directors 
 
c d buck 
m cowley    
t cowley    
j hedges 
j watkins 
p wilson    
 
secretary 
 
j hedges   
 
registered office 
 
lydden house 
wincombe business park 
shaftesbury 
dorset 
sp7 9qj 
 
bankers 
 
hsbc bank plc 
hsbc house 
mitchell way 
southampton 
so18 2xu 
 
auditor 
 
milsted langdon llp 
winchester house 
deane gate avenue 
taunton 
ta1 2uh 
 
nomad and broker 
 
finncap limited 
60 new broad street 
london 
ec2m 1jj 
 
financial public relations 
 
mhp communications 
60 great portland street 
london 
w1w 7rt 
  trakm8 holdings plc 
 
highlights 
 
3 
company number 05452547 
 
 
financial  
 
• revenue £475m 2012 £522m 
• recurring revenues up by 99 to an annualised £215m 
• gross profit margin up to 719 2012 637 
• ebitda £031m 2012 £036m 
• profit before tax £004m 2012 £008m  
• cash balances up 292 to £141m at year end 
• net assets increased to £252m 2012 £238m 
 
operating 
 
• investment for growth strategy successfully implemented 
• successful transition to recurring revenue business model 
• strong year for new product and service launches including 
o trakm8 eco
n
 logistics and tacho telematics solutions  
• encouraging order pipeline and sales opportunities  
• expanding range of international opportunities 
• completion of product transfer agreement with visilink 
 
current trading 
 
• investments in new products and sales resource expected to positively impact the second half 
of new financial year and beyond  
• successful integration of visilink customers 
• year to date revenues are 23 ahead of last year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  trakm8 holdings plc 
 
chairman’s statement 
 
 
 
company number 05452547 
 
 
 
4 
 
 
 
i am pleased to report that trakm8’s strategy of reinvesting in the business in order to drive long 
term growth is bearing fruit  
 
trakm8 has successfully introduced a number of new products and software solutions that have been 
well received by the market  
 
the strength of the trakm8 financial model where little profit is taken on the original sales is 
demonstrated by the improvement in cash balances to £141m and rising recurring revenues which 
continues to be the key focus of our strategy 
 
i am encouraged by the outlook for the business the group is well positioned with a strong balance 
sheet in a growing market with the increasingly advanced solutions offered by the company’s 
technology i am confident that the business will continue to grow profitably and take advantage of 
opportunities as and when they arrive 
 
as announced separately today i have decided to step down after seven years as chairman and non
executive director of trakm8  john watkins currently our chief executive has become executive 
chairman a new role  at the same time we are appointing keith evans a former partner of 
pricewaterhousecoopers as nonexecutive director  it has been a pleasure contributing to the 
development of the trakm8 story and i am confident that its future is bright and secure       
 
 
dawson buck 
chairman  trakm8 holdings plc 
 
ceo’s statement 
 
 
5 
company number 05452547 
 
 
i am pleased with the progress summarised in the chairman’s statement 
 
the decision was taken last year and implemented early in the second half to make a game changing 
investment in engineering sales and support staff  this increased our operating costs by 
approximately £50000 per month this decision has also negatively impacted the profit and loss 
during the period as our revenues have as expected lagged these investments 
 
due to delays on some product sales which took longer to complete than expected overall revenues 
declined somewhat although disappointing this is a reflection of the increased emphasis on solutions 
sales and engineering services the transition from the hardware supplier trakm8 was five years ago 
to the full solutions supplier of today has made the revenue line move from one off sales today to 
long term recurring service revenues as a result the top line can be strongly influenced by individual 
major contracts but the underlying revenue security of the group continues to improve  
 
trakm8 has enjoyed a significant improvement in sales of complete solutions and engineering services 
during the period this has resulted in strong growth in recurring revenues and higher margins  
 
the group revenues are accounted for in three segments 
 
products  
 
this is the segment where trakm8 supplies other telematics service providers with hardware 
solutions in most cases this also includes our market leading unit configuration firmware this has 
been a year of transition many of our uk customers for our products in the past have migrated to 
alternative suppliers that do not compete with them in the solutions market this migration is perhaps 
a validation of our success in competing at the end user level 
 
following the appointment of an international business development manager early in the year we 
have increased our international sales of hardware this has taken some time to build traction as 
customers conduct extensive trials to ensure that the hardware meets their requirements new 
customers have started to buy units from us in north and south america overall the total number of 
units sold to third parties declined during the year but the trend towards yearend was positive the 
highlight of the year was the significant sales of hardware to motorola as announced on 2 july 2012 
 
whilst the sales of hardware to third party integrators help us to ensure our manufactured cost of 
products are as low as can be achieved these revenues are at lower margins and have no ongoing 
recurring revenues as such they remain important to us but not the most strategically important 
segment 
 
solutions  
 
this segment is where trakm8 supplies customers with a fully integrated service provision customers 
include the aa eon and jewson this solution is also provided through a partner in south africa  
 
the number of units reporting to swift has continued to grow steadily throughout the year and this 
has increased the base of recurring monthly revenue which provides the improved security and 
predictability to future income by the end of the financial year the monthly recurring revenue had 
increased by 99 on the previous year to an annualised £215m the majority of these revenues are 
not taken as upfront payments ensuring our cash receipts are close to sales booked  
 
 
  trakm8 holdings plc 
 
ceo’s statement continued 
 
 
 
 
company number 05452547 
 
 
 
6 
 
we were pleased to announce on 25 april 2013 the completion of a product transfer agreement with 
visilink a cheshire based telematics service provider   under the agreement visilink’s entire 
customer base was offered the opportunity to transfer to our swift solution this process proved that 
we could communicate with third party hardware via our stream servers no revenues accrued during 
the year to march 2013 but we expect over 500 units to eventually migrate onto swift providing a lift 
in recurring revenues for the new financial year 
 
during the year the company enhanced the engineering investments in new solutions and launched 
updated versions of swift and eco
n
  we also launched a new fleet management routing and 
scheduling package called logistics this package has three early adopters and has an encouraging 
number of other inquiries 
 
another new product developed during the year but launched in the last month is the tachograph 
range of solutions that integrate the digital tachograph information into mobile applications for driver 
and operator status reporting and provide operators with the legal compliance data required to meet 
the driver hours regulations again early adopters have expressed positive feedback and the pipeline 
of opportunities is growing 
 
we have also undertaken a considerable amount of development to white label our eco
n
 solution for a 
new customer this has been a considerable engineering task and no solutions revenues were derived 
during the period there are however good opportunities as a result of this development  it is 
encouraging that this product is taking market share from more established competitors 
 
the solutions segment is the core value enhancing activity of the group and overall our revenues 
grew by 93 during the period 
 
engineering services  
 
this is the segment where trakm8 undertakes bespoke software development for customers the 
customer specific application engineering has been a major feature of the product development team 
as the larger customers have demanded their particular requirements this has also helped improve 
our core products  
 
these engineering projects provide profitable consultancy activities in themselves but also help to 
integrate customers to trakm8 solutions and provide ongoing support and maintenance revenues 
projects for jewson st gobain and others have been undertaken in the past 12 months and whilst 
this activity remains a small percentage of the group revenues it is considered a key differentiator 
skill and value added capability 
 
this segment increased by £019m over the previous year to £041m 
  
outlook 
 
the board is confident that our investments in new products and sales resources will positively impact 
the second half of new financial year and beyond in the meantime we have a strong pipeline of new 
products and solutions and we are confident that our recurring revenues will carry on growing  we 
continue to receive inquiries for increasing levels of engineering services work 
 
the new solutions and agreements we have announced since the year end will provide additional 
revenues and opportunities in the current financial year and after the first two months of trading our 
revenues are ahead of last year   trakm8 holdings plc 
 
ceo’s statement continued 
 
 
 
 
company number 05452547 
 
 
 
7 
 
with our strong balance sheet good cash generation and robust business model trakm8 is in a 
position to consider augmenting growth through selective acquisitions alongside our current organic 
growth strategy any acquisition will need to meet our narrow market segment objectives and 
financial criteria  
 
finally i would like to thank all the trakm8 staff for their tremendous hard work over the past twelve 
months 
 
 
john watkins 
ceo  trakm8 holdings plc 
 
directors’ report  
 
 
8 
company number 05452547 
 
the directors submit their report and financial statements of trakm8 holdings plc for the year ended 
31 march 2013 
 
trakm8 holdings plc is a public listed company incorporated and domiciled in england company 
number 05452547 whose shares are quoted on aim a market operated by the london stock 
exchange plc 
 
principal activities 
 
the principal activities of the trakm8 group are the manufacture marketing and distribution of 
vehicle telematics equipment and services trakm8 holdings plc is the holding company for the 
trakm8 group 
 
review of the business 
 
the review of the business is contained in the chairman’s and ceo’s statement on pages 4 to 7    
 
 
results and dividends 
 
the group results for the year ended 31 march 2013 are shown in the consolidated statement of 
comprehensive income on page 16 the directors do not recommend the payment of a dividend 
 
 
future developments 
 
future developments of the business is contained in the chairman’s and ceo’s statement on pages 4 
to 7    
 
research and development 
 
the board considers that the group’s research and development activity plays an important role in the 
operational and financial success of the business  during the year we announced a strategic 
investment in our research and development activities in order to further enhance the group’s 
development resources and products for future years 
 
   trakm8 holdings plc 
 
directors’ report continued 
 
 
 
 
company number 05452547 
 
 
 
9 
 
key performance indicators 
 
the key performance indicators used to assess the performance and financial status of the group are 
as follows 
 
1 operating profit  the group produced an operating profit of £39577 compared to last year’s 
operating profit of £88345  the decrease in operating profit was as a result of our 
investment in sales marketing and engineering activities  
2 borrowings  the group monitors its cash and borrowings position and updates cash flow 
forecasts for the following twelve months on a daily basis  during the year total borrowings 
decreased from £219316 to £163083 at the year end   
3 customer services  a weekly analysis is undertaken of outstanding customer service cases to 
ensure compliance with our service level agreements 
4 credit control  all overdue accounts are reviewed and where necessary contacted on a 
weekly basis 
 
going concern 
 
the directors confirm that they are satisfied that the group has adequate resources and facilities to 
continue in business for the foreseeable future  for this reason they continue to adopt the going 
concern basis in preparing the financial statements 
 
directors 
     
the following directors have held office during the year 
c d buck   
m cowley  
t cowley  
j hedges  
j watkins  
p wilson  
 
directors and their interests 
 
the present members of the board are as listed on page 2   the directors’ interests in the shares of 
the company are detailed below 
 
 
1p ordinary shares 
at 31 march 2013 
 of issued 
ordinary share capital 
18864731 ordinary 
shares 
1p ordinary shares 
at 1 apr 2012 
or on subsequent date of 
appointment 
 of issued 
ordinary share capital 
18764731 ordinary 
shares 
c d buck 641994 337 541994 287 
m cowley  1269203 666 1194203 633 
t cowley  1534002 805 1459002 773 
j hedges 1470808 772 1171025 621 
j watkins 4581162 2405 3852738 2042 
p wilson 555512 286 420512 223 
the directors had no interest in the share capital of the company’s subsidiary undertakings at 
31
 
march 2013 or on the date on which these financial statements were approved 
   trakm8 holdings plc 
 
directors’ report continued 
 
 
 
 
company number 05452547 
 
 
 
10
 
directors’ remuneration 
 
the directors’ remuneration for the year ended 31 march 2013 was 
 
audited 
 
 salaries  
 fees 
 
£ 
bonuses 
 
 
£ 
benefits 
 
 
£ 
share 
options 
 
£ 
total 
31 
march  
2013        
 £ 
total 
31 march 
 2012            
 £ 
d buck 35000   748 35748 35000 
m cowley 78925 893 5581 2243 87642 81712 
t cowley 82106 929 5581 2243 90859 84798 
j hedges  82106 929 5770 2990 91795 84723 
j watkins  101656 7749 11047 4110 124562 84769 
p wilson  75338 852 9429 2243 87862 83094 
total 
455131 11352 37408 14577 518468 454096 
 
directors’ share options 
 
at 31 march 2013 the following options had been granted to the companys directors and remain 
current and unexercised 
 
 option 
exercise 
price 
balance as at 
31 march 2012 
granted 
during 
year 
exercised 
during year 
expired 
forfeited 
during year 
balance as at 
31 march 2013 
expiry date 
d buck £006 100000  100000    
 £013  50000   50000 300722 
m cowley £006 75000  75000    
 £013  150000   150000 300722 
        
t cowley £006 75000  75000    
 £013  150000   150000 300722 
        
j hedges £013  200000   200000 300722 
        
j watkins £006 200000  200000    
 £013  275000   275000 300722 
        
p wilson £006 100000  100000    
 £013  150000   150000 300722 
 
the group provides indemnity cover for the directors 
 
 
 
 
 
   trakm8 holdings plc 
 
directors’ report continued 
 
 
 
 
company number 05452547 
 
 
 
11
 
suppliers 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 
payables for the parent company at the year end represented 68 days of purchases 2012 45 days 
 
employment policy 
 
during the year the group has consulted with employees in matters likely to affect their interests and 
is committed to involving them in the performance and development of the group  
 
disabled employees 
 
the group gives full consideration to applications for employment from disabled persons where the 
requirements of the job can be adequately fulfilled by a disabled person 
 
should existing employees become disabled it is the 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 
 
principal risks and uncertainties 
 
the following are identified as the principle risks and uncertainties facing the group 
 
technology risk  the group invests in research and development to enable the delivery of new and 
enhanced products and services 
 
liquidity risk  the group operates a longterm business and its policy is to finance it primarily with 
equity and short to mediumterm 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 
 
foreign currency risk  historically the group has not used hedging instruments to minimise currency 
risk as the exposure is limited if foreign currency exposure increases the use of foreign currency 
hedging instruments will be reviewed as necessary  
  
statement as to disclosure of information to the auditor 
 
the directors who were in office on the date of approval of these financial statements have 
confirmed as far as they are aware that there is no relevant audit information of which the auditor is 
unaware each of the directors has confirmed that they have taken all the steps that they ought to 
have taken as directors in order to make themselves aware of any relevant audit information and to 
establish that it has been communicated to the auditor 
 
 
 
 
 
 
  trakm8 holdings plc 
 
directors’ report continued 
 
 
 
 
company number 05452547 
 
 
 
12
 
auditors 
 
a resolution to reappoint milsted langdon llp chartered accountants as auditors will be put to the 
members at the annual general meeting 
 
by approval of the board on 28 june 2013 
 
 
 
 
j hedges 
secretary  trakm8 holdings plc 
 
statement of directors’ responsibilities in the preparation of 
financial statements 
 
13 
company number 05452547 
 
the directors are responsible for preparing the directors’ report and the financial statements in 
accordance with applicable law and regulations 
  
company law requires the directors to prepare group and company financial statements for each 
financial year  the directors are required by the aim rules of the london stock exchange to prepare 
group financial statements in accordance with international financial reporting standards ifrs  as 
adopted by the european union “eu” and have elected under company law to prepare the company 
financial statements in accordance with united kingdom generally accepted accounting practice 
united kingdom accounting standards and applicable law 
  
the group financial statements are required by law and ifrs adopted by the eu to present fairly the 
financial position and performance of the group the companies act 2006 provides in relation to such 
financial statements that references in the relevant part of that act to financial statements giving a 
true and fair view are references to their achieving a fair presentation 
 
under company law the directors must not approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the group and the company and of the 
profit or loss of the group for that period  
  
in preparing each of the group and company financial statements the directors are required to 
  
a select suitable accounting policies and then apply them consistently 
 
b make judgements and accounting estimates that are reasonable and prudent 
 
c for the group financial statements state whether they have been prepared in accordance with 
ifrs adopted by the eu and for the company financial statements state whether applicable uk 
accounting standards have been followed subject to any material departures disclosed and 
explained in the group and company financial statements and 
 
d prepare the financial statements on the going concern basis unless it is inappropriate to presume 
that the group and the company will continue in business 
 
the directors are responsible for keeping adequate accounting records that are sufficient to show and 
explain the group’s and the company’s transactions and disclose with reasonable accuracy at any 
time the financial position of the group and the company and enable them to ensure that the financial 
statements comply with the companies act 2006  they are also responsible for safeguarding the 
assets of the group and the company and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities 
 
the directors are responsible for the maintenance and integrity of the corporate and financial 
information included on the trakm8 holdings plc website 
 
legislation in the united kingdom governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions 
 
 
  independent auditor’s report to the members of  
 
trakm8 holdings plc 
 
14 
company number 05452547 
 
we have audited the financial statements of trakm8 holdings plc for the year ending 31
st
 march 
2013 which comprise the consolidated statement of comprehensive income the consolidated 
statement of changes in equity the consolidated statement of financial position the consolidated 
statement of cash flows the parent company balance sheet and the related notes  the financial 
reporting framework that has been applied in the preparation of the group financial statements is 
applicable law and international financial reporting standards ifrs as adopted by the european 
union  the financial reporting framework that has been applied in the preparation of the parent 
company financial statements is applicable law and united kingdom accounting standards united 
kingdom generally accepted accounting practice  
 
this report is made solely to the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006  our audit work has been undertaken so that we might state to 
the company’s members those matters we are required to state to them in an auditor’s report and for 
no other purpose  to the fullest extent permitted by law we do not accept or assume responsibility 
to anyone other than the company and the company’s members as a body for our audit work for 
this report or for the opinions we have formed 
 
respective responsibilities of directors and auditors 
 
as more fully explained in the directors’ responsibilities statement set out on page 13 the directors 
are responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view  our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and international standards on auditing uk and ireland  those 
standards require us to comply with the auditing practices board’s apb’s ethical standards for 
auditors 
 
scope of the audit of the financial statements 
 
a description of the scope of an audit of financial statements is provided on the apb’s website at 
wwwfrcorgukapbscopeprivatecfm 
 
opinion on the financial statements 
 
in our opinion  
 
• the financial statements give a true and fair view of the state of the group’s and of the parent 
company’s affairs as at 31 march 2013 and of the group’s profit for the year then ended 
• the group financial statements have been properly prepared in accordance with ifrs as adopted 
by the european union  
• the parent company financial statements have been properly prepared in accordance with united 
kingdom generally accepted accounting practice and 
• the financial statements have been prepared in accordance with the requirements of the 
companies act 2006 
opinion on other matter prescribed by the companies act 2006 
 
in our opinion the information given in the directors’ report for the financial year for which the 
financial statements are prepared is consistent with the financial statements   independent auditor’s report to the members of  
 
trakm8 holdings plc continued 
 
 
 
 
company number 05452547 
 
 
 
15 
 
matters on which we are required to report by exception 
 
we have nothing to report in respect of the following matters where the companies act 2006 requires 
us to report to you if in our opinion 
 
• adequate accounting records have not been kept by the parent company or returns 
adequate for our audit have not been received from branches not visited by us or 
• the parent company financial statements are not in agreement with the accounting records 
and returns or 
• certain disclosures of directors’ remuneration specified by law are not made or 
• we have not received all the information and explanations we require for our audit  
 
 
 
 
 
 
nigel fry senior statutory auditor 
for and behalf of milsted langdon llp 
chartered accountants and statutory auditors 
winchester house 
deane gate avenue 
taunton 
ta1 2uh 
 
28 june 2013 
 
 
  trakm8 holdings plc 
 
consolidated statement of comprehensive income  
for the year ended 31 march 2013 
 
16 
company number 05452547 
 
 
 notes 2013 2012 
    
  £ £ 
    
revenue 6 4749916 5215565 
cost of sales  1332833 1889499 
                                                                                    
gross profit 3417083 3326066 
 
other income 7  5039 
                                                                                    
 3417083 3331105 
   
administrative expenses 3377506 3242760 
                                                                                      
operating profit 7 39577 88345 
 
finance income  2423 788 
                                                                                      
  42000 89133 
    
finance costs 8 4478 5249 
                                                                                    
profit before taxation 37522 83884 
 
income tax credit  9 112537 50666 
                                                                                   
profit for the year attributable to the owners of the 
parent 
 150059 134550 
    
other comprehensive income    
currency translation differences  1615 1493 
                                                                                 
total comprehensive income for the year attributable 
to owners of the parent  
148444 136043 
                                                 
 
    
earnings per ordinary share pence attributable to 
owners of the parent  
 
 
basic 11 079p 071p 
    
diluted 11 078p 070p 
                                                    
 
 
there were no discontinued operations in 2013 or 2012  accordingly the results relate to continuing operations 
   trakm8 holdings plc 
 
consolidated statement of changes in equity 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
17 
 share 
capital 
share 
premium 
merger  
reserve 
translation 
reserve 
retained 
earnings 
total equity 
attributable to 
owners of the 
parent 
 £ £ £  £ £  £  
       
balance as at 1 april 2011 187647 1719402 509837 206321 387218 2235989 
comprehensive income       
profit for the year 
    
134550 134550 
other comprehensive income 
      
exchange differences on 
translation of overseas  
operations 
   1493  1493 
total comprehensive income    1493 134550 133057 
       
transactions with owners       
shares issued 1000 4250    5250 
ifrs2 share based payments 
     5537 5537 
transactions with owners 1000 4250   5537 10787 
balance as at 1 april 2012 188647 1723652 509837 204828 247131 2379833 
       
comprehensive income       
profit for the year     150059 150059 
other comprehensive income       
exchange differences on 
translation of overseas  
operations 
   1615  1615 
total comprehensive income    1615 150059 148444 
       
transactions with owners       
shares issued 5500 27500    33000 
purchase of own shares     57924 57924 
ifrs2 share based payments     19656 19656 
transactions with owners 5500 27500   111791 143176 
balance as at 31 march 2013 194147 1751152 509837 203213 135340 2523009 
       
 
  trakm8 holdings plc 
 
consolidated statement of financial position 
as at 31 march 2013 
 
18 
company number 05452547 
   
 
 
2013 2012 
 
 
  
 
notes 
£ £ 
non current assets 
 
  
intangible assets      12 868530 1005107 
property and equipment      13 560175 517118 
deferred income tax asset      16 110290 98421 
                                                                                       
 1538995 1620646 
                                                                                      
current assets 
inventories      14 548143 410016 
trade and other receivables      15 643172 782375 
current tax assets 
     9 
100668 15488 
cash and cash equivalents 
 
1405133 1087474 
                                                                                     
 2697116 2295353 
                                                                                      
current liabilities 
 
  
trade and other payables      17 1532349 1250672 
borrowings      18 46740 56223 
 
 
                                                                                    
 
 
1579089 1306895 
                                                                                      
   
current assets less current liabilities 1118027 988458 
   
total assets less current liabilities 2657022 2609104 
   
non current liabilities    
borrowings      18 116343 163093 
provisions      19 17670 66178 
                                                                          
net assets 2523009 2379833 
                                                 
  equity 
  share capital  21 194147 188647 
  share premium account  1751152 1723652 
  merger reserve account  509837 509837 
  translation reserve  203213 204828 
  retained earnings  135340 247131 
                                                                            
total equity attributable to owners of the parent  2523009 2379833 
                                                  
 
these financial statements were approved by the board of directors and authorised for issue on 
28 june 2013 and are signed on their behalf by 
 
 
 
 
j watkins       j hedges 
director        director 
  trakm8 holdings plc 
 
consolidated statement of cash flows 
for the year ended 31 march 2013 
 
19 
company number 05452547 
 
   
 notes 2013 2012 
    
  £ £ 
net cash inflow from operating activities  23 496650 110845 
    
cash flows from investing activities    
purchases of property plant and equipment  97834 91232 
purchases of intangible assets  89241 
 
 
                                                                                   
net cash used in investing activities   97834 180473 
  
                                                                                   
   
cash flows from financing activities   
issue of new shares 33000 5250 
purchase of treasury shares 57924  
repayment  new obligations under hire purchase agreements 35125 53296 
repayment of loans 21108 20471 
                                                                                  
net cash used in from financing activities 81157 38075 
                                                                                  
 
net increase  decrease in cash and cash equivalents 317659 31553 
  
                                                                                 
cash and cash equivalents at beginning of year 1087474 1119027 
 
 
                                                                                 
cash and cash equivalents at end of year 1405133 1087474 
 
 
                                                
  trakm8 holdings plc 
 
notes to the financial statements 
for the year ended 31 march 2013 
 
 
 
 
20 
company number 05452547 
1     general information 
 
trakm8 holdings plc “company” is a public limited company incorporated in the united 
kingdom registration number 05452547 the company is domiciled in the united kingdom and 
its registered address is lydden house wincombe business park shaftesbury dorset sp7 9qj 
the company’s ordinary shares are traded on the aim market of the london stock exchange 
 
the group’s principal activity is the manufacture marketing and distribution of vehicle telematics 
equipment and services the company’s principal activity is to act as a holding company for its 
subsidiaries 
 
2 authorisation of financial statements and statement of compliance with ifrs 
 
the group’s financial statements have been prepared in accordance with international financial 
reporting standards “ifrs” and international financial reporting interpretations committee 
“ifric” interpretations as endorsed by the european union and with those parts of the 
companies act 2006 applicable to companies reporting under ifrs  
 
3 basis of preparation 
 
the accounting policies set out in note 4 have been applied consistently to all periods presented 
in these consolidated financial statements 
 
these financial statements are presented in sterling as that is considered to be the currency of 
the primary economic environment in which the group operates  this decision was based on the 
group’s workforce being based in the uk and that sterling is the currency in which management 
reporting and decision making is based 
 
4 accounting policies 
 
 basis of accounting 
 
the preparation of the financial statements requires management to make estimates and 
assumptions that affect the reported amounts of revenues expenses assets and liabilities and 
the disclosure of contingent liabilities at the date of the financial statements  if in the future 
such estimates and assumptions which are based on management’s best judgement at the date 
of the financial statements deviate from the actual circumstances the original estimates and 
assumptions will be modified as appropriate in the year in which the circumstances change  
where necessary the comparatives have been reclassified or extended from the previously 
reported results to take into account presentational changes   
 
 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
21 
4    accounting policies continued 
 
basis of consolidation 
 
the consolidated financial statements incorporate the financial statements of the company and 
entities controlled by the company its subsidiaries made up to 31 march each year  control is 
achieved where the company has the power to govern the financial and operating policies of an 
investee entity so as to obtain benefits from its activities 
 
the trading results of subsidiaries acquired or disposed of during the year are included in the 
consolidated statement of comprehensive income from the effective date of acquisition or up to 
the effective date of disposal as appropriate 
 
all 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 liabilities incurred or assumed at the date of exchange  identifiable 
assets acquired and liabilities and contingent liabilities assumed in a business combination are 
initially measured at fair value at the acquisition date irrespective of the extent of any minority 
interest  the excess of cost of acquisition over the fair values of the group’s share of identifiable 
net assets acquired is recognised as goodwill  any deficiency of the cost of acquisition below the 
fair value of identifiable net assets acquired ie discount on acquisition is recognised directly in 
the statement of comprehensive income   
 
where necessary adjustments are made to the financial statements of subsidiaries to bring the 
accounting policies used into line with those used by other members of the group 
 
 
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 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 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  
 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
22 
4     accounting policies continued 
 
financial instruments 
 
financial assets and financial liabilities are recognised in the group’s balance sheet when the 
group becomes a party to the contractual provisions of the instrument 
 
trade receivables 
trade receivables are initially recognised at fair value and subsequently measured at their 
amortised cost using the effective interest method less any provision for impairment  a provision 
for impairment is made where there is objective evidence including customers with financial 
difficulties or in default on payments that amounts will not be recovered in accordance with 
original terms of the agreement  a provision for impairment is established when the carrying 
value of the receivable exceeds the present value of the future cash flow discounted using the 
original effective interest rate  the carrying value of the receivable is reduced through the use of 
an allowance account and any impairment loss is recognised in the statement of comprehensive 
income 
 
cash and cash equivalents 
cash and cash equivalents comprise cash on hand and demand deposits and other shortterm 
highly liquid investments that are readily convertible to a known amount of cash and are subject 
to an insignificant risk of change in value  for the purposes of the cash flow statement cash 
and cash equivalents includes bank overdrafts  
 
financial liabilities and equity 
financial liabilities and equity instruments are classified according to the substance of the 
contractual arrangements entered into  an equity instrument is any contract that evidences a 
residual interest in the assets of the group after deducting all of its liabilities 
 
bank borrowings 
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 accruals basis and are added to the carrying amount of the instrument to 
the extent that they are not settled in the period in which they arise 
 
trade payables 
trade payables are initially recognised at fair value and subsequently at amortised cost using the 
effective interest method 
 
goodwill  
 
goodwill arising on consolidation is recorded as an intangible asset and is the surplus of the cost 
of acquisition over the group’s interest in the fair value of identifiable net assets acquired  
goodwill is reviewed annually for impairment  any impairment identified as a result of the review 
is charged in the statement of comprehensive income  negative goodwill is written off in the 
year in which it arises 
 
on disposal of a subsidiary associate or jointly controlled entity the attributable amount of 
goodwill is included in the determination of the profit or loss on disposal  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
23 
4    accounting policies continued 
 
intangible assets other than goodwill 
  
an intangible asset which is an identifiable 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  such 
intangible assets are carried at cost less amortisation  amortisation is charged to ‘administrative 
expenses’ in the statement of comprehensive income on a straight line basis over the intangible 
assets’ useful economic life 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 statement of comprehensive income 
 
 property plant and equipment 
 
property plant and equipment are stated at cost less any subsequent accumulated depreciation 
or impairment losses  with the exception of freehold buildings held at 31 march 2006 the date 
of transition to ifrs cost represents purchase price together with any incidental costs to 
acquisition  as permitted by ifrs 1 the cost of freehold buildings at 31 march 2006 represents 
deemed cost being the market value of the property for existing use at that date 
 
depreciation is provided on all property plant and equipment other than freehold land at rates 
calculated to write each asset down to its estimated residual value over its expected useful life 
as follows 
 
buildings 2  straight line 
furniture fixtures and equipment 25 reducing balance 
computer equipment 33 straight line 
 
assets held under finance leases or hire purchase arrangements are depreciated over their 
expected useful lives on the same basis as owned assets or where shorter over the term of the 
relevant agreement 
 
the assets’ residual values and useful lives are reviewed at each balance sheet date and 
adjusted if appropriate  the carrying values of property plant and equipment are reviewed for 
impairment when events or changes in circumstances indicate that the carrying value may not be 
recoverable  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
24 
4     accounting policies continued 
 
inventories 
 
inventories are valued at the lower of cost and net realisable value in general cost is determined 
on a first in first out basis and includes all direct expenditure and production overheads based on 
a normal level of activity net realisable value is the price at which the stocks can be sold in the 
normal course of business after allowing for the costs of realisation and where appropriate for 
the costs of conversion from its existing state to a finished condition provision is made for 
obsolete slow moving and defective stocks 
 
leases 
 
assets held under finance leases which are leases where substantially all the risks and rewards 
of ownership of the asset have been transferred to the group are capitalised in the balance 
sheet and depreciated over the shorter of the lease term or their useful lives  the asset is 
recorded at the lower of its fair value and the present value of the minimum lease payments at 
the inception of the lease  the capital elements of future obligations under finance leases are 
included in liabilities in the balance sheet and analysed between current and noncurrent 
amounts  the interest elements of future obligations under finance leases are charged to the 
statement of comprehensive income over the periods of the leases and represent a constant 
proportion of the balance of capital repayments outstanding in accordance with the effective 
interest rate method 
 
leases where the lessor retains substantially all the risks and rewards of ownership are classified 
as operating leases  the cost of operating leases net of any incentives received from the lessor 
is charged to the statement of comprehensive income on a straight line basis over the periods 
of the leases 
 
foreign currencies 
 
foreign currency assets and liabilities are converted to sterling at the rates of exchange ruling at 
the end of the financial year transactions in foreign currencies are converted to sterling at the 
rates of exchange ruling at the transaction date all of the resulting exchange differences are 
recognised in the statement of comprehensive income as they arise 
 
for the purpose of presenting consolidated financial statements the assets and liabilities of the 
group’s foreign operations are translated at exchange rates prevailing on the balance sheet date  
income and expense items are translated at the average exchange rates for the period  
exchange differences arising are classified as equity and transferred to the group’s reserves  
such translation differences are recognised as income or expense in the period in which the 
operation is disposed of 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
25 
4 accounting policies continued 
 
taxation 
the tax expense represents the sum of the current tax expense and deferred tax expense 
the tax currently payable is based on taxable profit for the year  taxable profit differs from net 
profit as reported in the statement of comprehensive income because it excludes items of 
income or expense that are taxable or deductible in other years and it further excludes items that 
are never taxable or deductible the group’s liability for current tax is calculated by using tax 
rates that have been enacted or substantively enacted by the balance sheet date 
deferred tax is the tax expected to be payable or recoverable on differences between the 
carrying amount of assets and liabilities in the financial statements and the corresponding tax 
bases used in the computation of taxable profit and is accounted for using the balance sheet 
liability method  
deferred tax liabilities are recognised for all taxable temporary differences and deferred tax 
assets are recognised to the extent that it is probable that taxable profits will be available against 
which deductible temporary differences can be utilised  
deferred tax is calculated at the tax rates that are expected to apply to the period when the 
asset is realised or the liability is settled based upon tax rates that have been enacted or 
substantively enacted  
 
revenue recognition 
 
revenue represents the total of amounts receivable for goods and services provided excluding 
value added tax  revenue is recognised on the delivery of the goods to the customer  where a 
service is provided covering a future period the applicable revenue is shown as deferred income 
under current liabilities 
 
warranty claims 
 
provision is made for liabilities arising in respect of expected warranty claims 
 
government grants 
 
government grants towards research and development projects are recognised as income over 
the periods necessary to match them with the related costs and are included within other 
income 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
26 
4 accounting policies continued 
 
segmental reporting 
 
operating segments are reported in a manner consistent with the internal reporting provided to 
the chief operating decisionmaker  the chief operating decision maker who is responsible for 
allocating resources and assessing performance of the operating segments has been identified 
as the board of directors 
 
equity  
  
equity comprises the following  
  
 share capital represents the nominal value of equity shares 
 share premium represents the excess over nominal value of the fair value of 
consideration received for equity shares net of expenses of the share issue  
 merger reserve represents the excess over nominal value of the fair value of consideration 
received for equity shares issued on reverse acquisition of subsidiaries net of expenses of 
the share issue prior to the date of transition to ifrs 
 translation reserve represents cumulative foreign exchange gains and losses on 
retranslation of overseas operations 
 retained earnings represents retained losses 
 
 
changes in accounting standards and disclosures 
 
a the group has not adopted any new interpretations or amendments to existing standards in 
the year ended 31 march 2013 
 
 
b there are no standards or interpretations that have been issued by the iasb that will have a 
material impact on the group’s financial statements 
 
 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
27 
 
5 critical accounting judgements and key sources of estimation uncertainty  
 
critical judgements in applying the group’s accounting policies 
 
in the process of applying the group’s accounting policies which are described in note 4 
management has made the following judgements that have the most significant effect on the 
amounts recognised in the financial statements apart from those involving estimations which 
are dealt with below 
 
valuation of intellectual property 
 
in assessing the fair value of the intellectual property management have considered the 
underlying value of the income streams  attention has been paid to the potential introduction of 
new products and services and the return anticipated from these and existing product sales  the 
directors believe that the fair value of the intellectual property is both appropriate and a realistic 
assessment of its long term value to the group 
 
key sources of estimation uncertainty 
 
the key assumptions concerning the future and other key sources of estimation uncertainty at 
the balance sheet date that have a significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial year are discussed below 
 
recoverability of internallygenerated intangible asset 
 
during the year management reconsidered the recoverability of its internally generated 
intangible asset which is included in the balance sheet at £237281  the costs relate to the 
development of the group’s portfolio of hardware and software products and management 
continue to believe that the anticipated revenues will enable the carrying amount to be 
recovered in full  assumptions have been made on the number of years over which the costs will 
be recovered based on management’s best expectations and these could turn out to be longer or 
shorter although any subsequent adjustment is not expected to be material 
 
 
recoverability of trade debtors 
 
the withdrawal or reduction of credit facilities from banks and leasing companies is affecting a 
wide range of businesses  management are particularly conscious of the financial weakness of 
some companies and is closely monitoring its outstanding debtor book in order to minimise the 
risk associated with future bad debts  weekly cash receipts are analysed and future supplies are 
stopped if accounts remain overdue  an increasing number of customers taking the group’s 
services pay by direct debit and this is reducing the group’s exposure to the nonrecoverability of 
trade debtors in the future  
 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
28 
6     segmental analysis 
 
the format of segmental reporting is based on the group’s management and internal reporting 
of the segments below which carry different risks and rewards and are used to make strategic 
decisions  products is the sale of hardware through the group’s distributors  solutions 
represents the sale of the group’s full vehicle telematics service direct to customers  engineering 
services comprises bespoke professional services and mapping solutions 
 
the board review the revenue results by segment and the gross margin  cost of sales comprise 
hardware costs and have been allocated to the segments based on the number of units sold  
administration costs and assets and liabilities are not separated out by segment 
 
year ended 31 march 
2013 
products 
 
 
£ 
solutions 
 
£ 
engineering 
services 
£ 
unallocated 
 
 
£ 
total 
 
 
£ 
      
segment revenue 1308627 3035466 405823  4749916 
      
gross profit 306945 2704315 405823  3417083 
      
depreciation  amortisation 117841 66569 90052  274462 
      
finance income    2423 2423 
      
finance costs     4478 4478 
      
income tax    112537 112537 
      
      
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
29 
6 segmental analysis continued 
 
 
year ended 31 march 
2012 
products 
 
 
£ 
solutions 
 
£ 
engineering 
services 
£ 
unallocated 
 
 
£ 
total 
 
 
£ 
      
segment revenue 2226230 2776872 212463  5215565 
      
gross profit 789858 2323746 212462  3326066 
      
government grant income   5039  5039 
      
depreciation  amortisation 124058 53703 93230  270991
      
finance income    788 788 
      
finance costs     5249 5249
      
income tax    50666 50666 
      
 
 
the group’s operations are located in the uk and the czech republic  the following table 
provides an analysis of the group’s revenue by geography based upon location of the group’s 
customers   
 
year ended 31 march 2013 
products 
 
£ 
solutions 
 
£ 
engineering 
services 
£ 
total 
 
£ 
     
united kingdom 219703 2942885 303152 3465740 
europe 608186 65744 5646 679576 
africa 93000  90525 183525 
rest of the world 387738 26837 6500 421075 
 1308627 3035466 405823 4749916 
 
the group had one customer who accounted for more than 10 of the group revenue 2012 one 
 
 
year ended 31 march 2012 
products 
 
£ 
solutions 
 
£ 
engineering 
services 
£ 
total 
 
£ 
     
united kingdom 1291621 2767583 98205 4157409 
europe 171772 9289 24258 205319 
africa 214928  90000 304928 
rest of the world 547909   547909 
 2226230 2776872 212463 5215565 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
30 
7 profit from operations 
 
 2013 2012 
 £ £ 
profit from operations is stated after charging crediting    
   
other income  government grant  5039 
   
loss on disposal of fixed assets 2633  
depreciation  owned fixed assets 
                    assets on hire purchase 
33560 
18417 
30205 
6417 
amortisation of intangible assets  219852 234369 
operating lease rentals   
 land and buildings 17729 14251 
 other 76187 31123 
loss on foreign exchange transactions 6936 11180 
staff costs note 10 1945388 1714323 
 
 2013 2012 
 £ £ 
auditor’s remuneration   
   audit services   
    parent company and consolidation 4825 4680 
    subsidiary audits 11250 10920 
   tax advisory services 2340 2285 
                                         
 
  
 
2013 2012 
 
£ £ 
rd cost   
  
 expensed 
457067 598818 
 amortised 
66978 55109 
 
                                        
 
 
8 finance costs 
 
  
2013 
 
2012 
 £ £ 
   
interest on finance leases  54 
interest on other loans 4478 5195 
                                                              
 4478 5249 
                                       
   
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
31 
9 income tax 
  
 
 2013 2012 
 £ £ 
rd tax credit 100668 15488 
recognition of deferred tax  40868 112689 
current year deferred tax movement 28999 77511 
 
                                                              
income tax credit 112537 50666 
 
                                      
 
factors affecting the tax charge 
 
 the tax assessed for the year is lower 2012 lower than the applicable rate of corporation tax 
in the uk the difference is explained below 
 
 2013 2012 
 £ £ 
profit before tax 37522 83884 
                                                 
 
   
 
 
profit on ordinary activities multiplied by the standard rate of 
corporation tax in the uk of 24 2011 26 9005 21810 
   
effects of   
   
expenses not deductibleincome not taxable 1687 23167 
share option adjustment 4717 706 
temporary differences 4717 16979 
change in deferred tax rates 18307 16261 
deferred tax brought forward recognised 40868 112689 
rd tax credit 100668 15488 
                                                                  
total tax 112537 50666 
                                         
 
 
10 employees 
 2013 2012 
 no  no  
the average monthly number of persons including directors 
employed by the group was 
   
 research and development 18 15 
 selling and distribution 24 19 
 production 1 1 
 administration 10 10 
                                                        
 53 45 
                                   
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
32 
10 employees continued 
 
staff costs for the employees and directors included under administrative expenses 
 
  2013 2012 
 £ £ 
wages and salaries 1707001 1509854 
social security costs 218731 198931 
share based payments 19656 5537 
                                                                     
 1945388 1714322 
                                           
 
 costs relating to the directors who are the key management of the group 
  2013 2012 
 £ £ 
wages and salaries 466483 434337 
benefits 37408 19759 
social security costs 53525 49659 
share based payments 14577 1103 
                                                                 
 571993 504858 
                                           
 
further details of directors’ fees and salaries bonuses and pensions are given in the directors’ 
report on page 18 
 
 
11 earnings per ordinary share 
 
the earnings per ordinary share has been calculated using the profit for the year and the 
weighted average number of ordinary shares in issue during the year as follows 
 
  2013 2012 
  £ £ 
earnings for the year after taxation  150059 134550 
                                                  
    
                no               no 
number of ordinary shares of 1p each  19044731 18864731 
    
basic weighted average number of ordinary shares of 1p 
each  
 18999526 18820621 
basic weighted average number of ordinary shares of 1p 
each diluted 
 19208565 19159446 
  
                                                                          
basic profit pence per share  079p 071p 
  
diluted profit pence per share  078p 070p 
  
                                                              
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
33 
12 intangible assets  
     intellectual 
property 
development 
costs 
total 
                    
£ 
                £ £ £ 
 cost     
 as at 1 april 2011  1673863 486510 2160373 
 additions   89241 89241 
   ───────  ───────  ──────
 as at 31 march 2012  1673863 575751 2249614 
 additions   126375 126375 
 reduction in acquisition cost  43100  43100 
   ───────  ───────  ──────
 as at 31 march 2013  1630763 702126 2332889 
   ───────  ───────  ──────
 
     intellectual 
property 
development 
costs 
total 
    
 
 
 £ £ £ 
 amortisation     
 as at 1 april 2011  667381 342757 1010138 
  charge for year  179260 55109 234369 
   ──────  ──────  ──────  
 as at 31 march 2012  846641 397866 1244507 
 charge for year  152874 66978 219852 
   ──────  ──────  ──────  
 as at 31 march 2013  999515 464844 1464359 
   ──────  ──────  ──────  
 net book value     
 as at 31 march 2013  631248 237282 868530 
   
                                                            
 as at 31 march 2012  827222 177885 1005107 
                                                                     
 as at 1 april 2011  1006482 143753 1150235 
                                                                     
  
development costs have been internally generated 
 
amortisation expenses of £219852 2012 £234369 have been charged to administrative 
expenses in the consolidated statement of comprehensive income  development costs will be 
fully amortised within the next four years and intellectual property will be fully amortised within 
the next four years   
 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
34 
13 property  equipment 
 
  freehold 
property 
furniture 
fixtures and 
equipment 
computer 
equipment 
total 
  £ £  £  £  
 cost 
as at 1 april 2011  420000 84269 181165 685434 
additions      10498 80734 91232 
exchange differences      504  504 
       
as at 31 march 2012  420000 94263 261899 776162 
additions  900 76659 20275 97834 
exchange differences   172 177 349 
disposals   23418 60265 83683 
       
as at 31 march 2013 420900 147332 221732 789964 
                                                                                  
 
 
 
  freehold 
property 
furniture 
fixtures and 
equipment 
computer 
equipment 
total 
  £ £  £  £  
 depreciation 
as at 1 april 2011  22040 41191 159196 222427 
charge for year  4408 11332 20882 36622 
exchange differences   5  5 
      
as at 31 march 2012 26448 52518 180078 259044 
charge for year  4419 10148 37410 51977 
exchange differences   3 177 180 
disposals  20787 60265 81052 
 
     
as at 31 march 2013 30867 41876 157046 229789 
                                                                                          
 net book value 
as at 31 march 2013  390033 105456 64686 560175 
                                                                                          
as at 31 march 2012  393552 41745 81821 517118 
                                                                                          
as at 1 april 2011  397960 43078 21969 463007 
                                                                                          
 
included within freehold property is £199585 2012 £199585 relating to land which is not 
depreciated the net book value of computer equipment includes £33333 2012 £51750 in respect of 
assets held under finance leases and hire purchase contracts the depreciation charge in respect of 
these assets was £18417 2012 £6417 
 
total depreciation expenses of £51977 2012 £36622 have been charged to administrative expenses 
in the consolidated statement of comprehensive income  
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
35 
14 inventories 
 
 2013 2012 
 £ £ 
finished goods and goods for resale 548143 410016 
                                     
 
the cost of inventories recognised as an expense and included in cost of sales amounted to 
£1332833 2012 £1889499  during the year old inventory lines totalling £35000 2012 
£40947 were written down and charged to cost of sales in the consolidated statement of 
comprehensive income  
 
 
15 trade and other receivables 
 
 2013 2012 
 £ £ 
trade receivables 543390 690354 
prepayments 99782 92021 
                                                                     
 643172 782375 
                                                 
 
the analysis of trade receivables by currency is as follows 
 2013 2012 
 £ £ 
pound sterling 519433 570532 
euro  54147 
other 23957 65675 
                                                                     
 543390 690354 
                                                 
 
an allowance for impairment is made where there is an identified event which based on previous 
experience is evidence of a reduction in the recoverability of the outstanding amount  the 
allowance that has been made for estimated irrecoverable trade receivables is nil  
2012 £20500   
 
as at 31 march 2013 trade receivables of £192177 were past due but not impaired  the ageing 
analysis of these trade receivables is as follows 
 
      
2013 2012 
      
  
      
£ £ 
 
up to 3 months 187806 359411 
 
3 to 6 months 4371 14721 
   
 
  
──────  ──────  
 
 
192177 374132 
  
 
   
══════ ══════ 
 
the directors consider that the carrying amount of trade and other receivables approximates to 
their fair values  the maximum exposure to credit risk at the reporting date is the carrying value 
of each class of receivable mentioned above 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
36 
16 
deferred tax 
 
  the analysis of deferred tax assets and deferred tax liabilities is as follows 
      
2013 2012 
 deferred tax asset   
£ £ 
      
  
 
deferred tax asset to be recovered after more than 12 months 128149 116443 
      ──────  ────── 
      
  
 deferred tax liability 
deferred tax asset 
  
£ £ 
        
 
deferred tax liability to be recovered after more than 12 months 17859 
18022 
      ──────  ────── 
 
 
  
 
deferred tax asset net 
110290 98421 
      ══════ ══════ 
 
  the movement in the deferred income tax assets and liabilities during the year is as follows 
 
 deferred tax assets   accelerated 
tax 
depreciation 
utilisation of 
unrecognised 
losses 
total 
     
£ £ £ 
 
as at 1 april 2012 16739 133182 116443 
 
charged to the income statement 6829 18535 11706 
     ────── ────── ────── 
 at 31 march 2013   
23568 151717 128149 
     ══════ ══════ ══════ 
 
 
 deferred tax liabilities     building 
revaluation 
     
  £ 
 
as at 1 april 2011   18185 
 
credited to the income statement   163 
       ────── 
 at 31 march 2012   
  18022 
 
credited to the income statement   163 
       ────── 
 
at 31 march 2013   17859 
     
  ══════ 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
37 
17 current liabilities – trade and other payables  
 2013 2012 
 £ £ 
trade payables 684417 429574 
taxation and social security 146277 136333 
other payables 14400 14801 
accruals and deferred income 687255 669964 
                                                                     
 1532349 1250672 
                                             
the directors consider that the carrying amount of trade payables approximates to their fair 
value 
 
18 borrowings 
 
 2013 2012 
 £ £ 
bank loan 138083 159191 
obligations under finance leases and hire purchase arrangements 
see note 20 
25000 60125 
                                                                
 163083 219316 
                                             
 
 2013 2012 
 £ £ 
on demand or within one year  46740 56223 
after one and within two years 22402 46740 
after two and within five years 71377 69269 
after five years 22564 47084 
                                                                     
 163083 219316 
less amount due for settlement within one year shown as current 
liabilities 46740 56223 
                                                                     
amount due for settlement after more than one year 116343 163093 
                                             
 
 the bank loan is secured by a fixed and floating charge on all the assets of the group it is 
repayable by monthly instalments until 2019 and bears interest at a floating rate of 250 over 
base rate 
 
19 provisions 
 
 2013 2012 
 £ £ 
as at 1 april 66178 70000 
decrease during the year 48508 3822 
                                                                
at 31 march 17670 66178 
                                             
 
the provision relates to the estimated additional costs payable under the terms of the contract 
for the acquisition of the telematics assets from vincotech gmbh  the costs relate to commission 
payable and have been estimated based on the anticipated numbers of units that will be sold 
 
  trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
38 
20 obligations under hire purchase contracts 
 
   2013 2012 
   £ £ 
gross hire purchase liabilities – minimum payments   
no later than 1 year  25000 35125 
later than 1 year and no later than 5 years   25000 
   25000 60125 
less future finance charges     
present value    25000 60125 
  
the present value of minimum hire purchase payments is analysed as follows 
   2013 2012 
 £ £ 
no later than 1 year 25000 35125 
later than 1 year and no later than 5 years  25000 
 25000 60125 
   
all contracts are denominated in sterling and are secured on the assets  the fair value of the 
hire purchase obligations approximates to their carrying amount 
 
 
21 share capital 
 
 2013 2012 
 no’s  
‘000’s £  
no’s 
 ‘000’s £ 
authorised     
ordinary shares of 1p each 200000 2000000 200000 2000000 
                                                                                                 
allotted issued and fully paid     
ordinary shares of 1p each 19414 194147 18864 188647 
                                                                                                 
 
movement in share capital 
   2013 2012 
 £ £ 
as at 1 april 188647 187647 
new shares issued  5500 1000 
as at 31 march 194147 188647 
 
the company currently holds 370000 ordinary shares in treasury representing 19 of the 
company’s issued share capital the number of 1 pence ordinary shares that the company has 
in issue less the total number of treasury shares is 19044731   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
39 
22 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 
 
option 
exercise 
price 
balance as 
at 31 march 
2012 
granted 
during 
year 
exercised 
during 
year 
expired 
forfeited 
during the 
year 
balance as 
at 31 march 
2013 
grant date option  
expected 
life 
years 
risk 
free 
rate of 
return 
volatility 
6p 550000  550000   300709 30   
155p 300000    300000 300410 30 302 54 
125p 100000    100000 310711 30 302 54 
13p  1225000   1225000 300712 100 302 54 
 
the share price was 135 pence on 1 may 2012 being the date of exercise of the above 550000 
options  the weighted average exercise price of share options which were outstanding as at 
31 march 2013 was 135 pence   
 
the exercise of all share options is the closing market price on the day of grant  a vesting period 
of 1 to 3 years is applicable according to the terms of each scheme 
 
the fair value of the equity settled share options granted is estimated as at the date of grant 
using the black scholes option pricing model taking into account the terms and conditions upon 
which the options were granted  the volatility has been based on historic share prices and the 
dividend yield has been assumed to be 0 for all schemes 
 
the group charged £19659 to the statement of comprehensive income in respect of share
based payments for the financial year ended 31 march 2013 2012 £5537 
 
share options exercisable at the 31 march 2013 were 400000 
 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
40 
23 cash flows 
 
  2013 2012 
  £ £ 
 reconciliation of profit before tax to net cash flow from 
operating activities 
   
 profit before tax 37522 83884 
 depreciation 54610 36622 
 bank and other interest charges 2055 4461 
 amortisation of intangible assets 219852 234369 
 capitalised development costs 126375  
 share based payments 19656 5537 
                                                                    
 operating cash flows before movement in working capital 207320 364873 
 movement on retranslation of overseas operations 1446 994 
 movement in inventories 138127 150974 
 movement in trade and other receivables 139203 110797 
 movement in trade and other payables 276267 226224 
                                                                      
 cash generated from operations 483217 97478 
    
 interest paid 4478 5249 
 interest received 2423 788 
 income taxes received 15488 17828 
                                                                        
 net cash inflow from operating activities 496650 110845 
                                            
 
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 
 
24 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 
  
2013 2012 
 operating leases 
£ £  
  
  
land and buildings   
 within one year 17729 17522 
 in the second to fifth years inclusive 53186 70086 
   
other   
 within one year 86898 34112 
 in the second to fifth years inclusive 62995 36646 
 
land and buildings under operating leases represents one lease payable by the group which has 
an expiry date in march 2017 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
41 
25 related party transactions 
 
details of the remuneration and share transactions with the company of the directors who are 
the key management personnel of the group are disclosed in the directors’ report  
 
j watkins was a director and shareholder of omitec group limited until 2 july 2012 when the 
group was sold to continental  omitec limited was a wholly owned subsidiary of omitec group 
limited  since that date linda watkins wife of john watkins remained a director of omitec 
limited but resigned on the 31 march 2013 
 
during the year ended 31 march 2013 a total of £1263349 was invoiced to trakm8 limited by 
omitec limited 2012 £1678110 and trakm8 limited invoiced omitec limited £12673 
2012 £20056   
 
 
26 financial instruments 
 
financial risk factors 
the group’s activities expose it to a variety of financial risks market risk including currency risk 
and interest rate risk credit risk and liquidity risk  where appropriate the group seeks to 
mitigate potential adverse effects on its financial performance 
 
liquidity risk 
the group’s objective is to maintain a balance between continuity and flexibility of funding 
through the use of borrowings and financial assets with a range of maturities  borrowing 
facilities are monitored against the group’s forecast requirements and it is the group’s policy to 
mitigate the risk by maintaining undrawn overdraft facilities and cash reserves the bank 
overdraft facility is £250000 and as at 31 march 2013 this facility was not being utilised   
      
credit risk 
the group’s principal financial assets are bank balances cash and trade and other receivables  
the group’s credit risk is primarily attributable to its trade receivables and the group attaches 
considerable importance to the collection and management of trade receivables   the group 
minimises its credit risk through the application of appropriate credit limits to customers based on 
an assessment of net worth and trading history with the group  standard credit terms are net 30 
days from date of invoice  overdue trade receivables are managed through a phased escalation 
culminating in legal action   
 
the credit risk on liquid funds is limited because the counterparties are banks with high credit
ratings assigned by international 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 
 
   trakm8 holdings plc 
 
notes to the financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
42 
26 financial instruments continued 
 
capital risk management 
 
the group’s objectives when managing capital are to safeguard the group’s ability to continue as 
a going concern in order to provide returns for shareholders and benefits for other stakeholders 
and to maintain an optimal capital structure to reduce the cost of capital 
 
in order to maintain or adjust the capital structure the group may adjust the amount of 
dividends paid to shareholders return capital to shareholders issue new shares or sell assets to 
reduce debt 
 
consistent with others in the industry the group monitors capital on the basis of the gearing 
ratio  this ratio is calculated as debt divided by total capital  debt is calculated as total 
borrowings including “current and noncurrent borrowings” as shown in the consolidated balance 
sheet  total capital is calculated as “equity” as shown in the consolidated balance sheet plus 
debt 
 
the group’s strategy has been to reduce gearing and to increase cash and cash equivalents  
this has been successfully achieved through the profits generated during the year 
 
 
  2013 2012 
  £ £ 
total borrowings note 18  163083 219316 
    
total equity  2523009 2379833 
    
total capital  2686092 2599149 
gearing ratio 
 
6 8 
 
financial instruments by category 
 
assets as per balance sheet   loans and receivables 
  2013 2012 
  £ £ 
trade and other receivables excluding prepayments  644058 705842 
cash and cash equivalents  1405133 1087474 
  2049191 1793316 
 
 
  
liabilities as per balance sheet 
 
financial liabilities at 
amortised cost 
  2013 2012 
  £ £ 
    
borrowings excluding finance lease liabilities  138083 159191 
hire purchase  25000 60125 
trade and other payables excluding statutory liabilities  1386072 1114339 
  1549155 1333655  trakm8 holdings plc 
 
parent company balance sheet 
as at 31 march 2013 
 
 
43 
company number 05452547 
 
    
 notes 2013 2012 
  £ £ 
fixed assets    
investments 3 801782 801782 
                                                                             
current assets 
debtors  4 150005 894364 
cash at bank 1049958 312375 
                                                                         
 1199963 1206739 
   
creditors amounts falling due within one year 5 42455 34134 
                                                                       
net current assets 1157508 1172605 
                                                                       
net assets 1959290 1974387 
                                              
 
 
capital and reserves 
called up share capital  6 194147 188647 
share premium 7 1751152 1723652 
profit and loss account 7 13991 62088 
                                                                        
shareholders’ funds   1959290 1974387 
                                               
 
 
these financial statements were approved by the directors and authorised for issue on 28 june 2013 
and are signed on their behalf by 
 
 
 
 
 
 
j watkins       j hedges 
director        director 
   trakm8 holdings plc 
 
notes to the parent company financial statements 
for the year ended 31 march 2013 
 
 
44 
company number 05452547 
 
1 accounting policies 
 
 basis of accounting 
 
 the financial statements have been prepared under the historical cost convention in accordance 
with the applicable accounting standards 
 
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 sharebased 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 
 
investments 
 
 fixed asset investments are stated at cost less impairment against the cost of investments the 
carrying values of investments in subsidiaries are reviewed for impairment if events or changes 
in circumstances indicate the carrying value may not be recoverable 
 
foreign currencies 
 
foreign currency assets and liabilities are converted to sterling at the rates of exchange ruling at 
the end of the financial year transactions in foreign currencies are converted to sterling at the 
rates of exchange ruling at the transaction date all of the resulting exchange differences are 
recognised in the profit and loss account as they arise 
  
deferred taxation 
 
 provision is made for deferred taxation in respect of all material timing differences that have 
originated but not reversed by the balance sheet date timing differences represent differences 
between gains and losses recognised for tax purposes in periods different from those in which 
they are recognised in the financial statements no deferred tax is recognised on permanent 
differences between the company’s taxable gains and losses and its results as stated in the 
financial statements  deferred tax assets and liabilities are included without discounting  
 
 
  trakm8 holdings plc 
 
notes to the parent company financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
45 
 
2 profit and loss account 
 
as permitted by section 408 of the companies act 2006 the profit and loss account of the 
company is not presented as part of these financial statements 
 
the lossprofit after tax for the year in the company is £9829 2012 profit £2953   
 
3     investments 
 
  subsidiaries 
cost   £ 
at 1 april 2012 and 31 march 2013 801782 
                        
 
name of subsidiary 
country of 
incorporation 
class of 
holding 
proportion 
held and 
voting rights nature of business 
     
trakm8 limited england and wales ordinary 
 
100 
 
marketing and 
distribution of vehicle 
telematics 
trakm8 sro formally pjsoft 
sro 
czech republic ordinary 100 mapping services 
interactive projects limited england and wales ordinary 100 dormant 
purple reality limited england and wales ordinary 100 dormant 
 
 
4 debtors 
 
   
 2013 2012 
 £ £ 
amounts due from subsidiary undertakings 149633 887619 
prepayments  372 6745 
                                                                         
 150005 894364 
                                                 
 
5 creditors amounts falling due within one year 
 
 2013 2012 
 £ £ 
trade creditors 22115 14649 
accruals and other creditors 20340 19485 
                                                                     
 42455 34134 
                                             
 
   trakm8 holdings plc 
 
notes to the parent company financial statements continued 
for the year ended 31 march 2013 
 
 
 
 
company number 05452547 
 
 
 
46 
6 share capital 
 
details of share capital and share options are shown in notes 21 and 22 to the consolidated 
accounts above  
 
7 reserves 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8    financial commitments 
 
at the balance sheet date the company had outstanding commitments for future minimum 
operating lease payments under noncancellable operating leases which fall due as follows 
  
2013 2012 
 operating leases 
£ £  
  
  
motor vehicles   
 within one year 4464  
 in the second to fifth years inclusive 6325  
 
 
 
 
9    related parties 
 
the company has taken advantage of the exemptions conferred by frs 8 from the requirement 
to disclose transactions between wholly owned subsidiary undertakings   
 share capital share 
premium 
profit and  
loss reserve 
total 
 £ £  £ £  
at 1 april 2011 187647 1719402 53598 1960647 
shares issued 1000 4250  5250 
frs20 share based payments   5537 5537 
profit for the year   2953 2953 
at 1 april 2012 188647 1723652 62088 1974387 
shares issued 5500 27500  33000 
frs20 share based 
payments  
 
  19656 19656 
purchase of own shares   57924 57924 
loss for the year   9829 9829 
     
as at 31 march 2013 194147 1751152 13991 1959290 
                                                     
     
     


Summary:
 trakm8 holdings plc 
 
highlights 
 
3 
company number 05452547 
 
 
financial  
 
• revenue £475m 2012 £522m 
• recurring revenues up by 99 to an annualised £215m 
• gross profit margin up to 719 2012 637 
• ebitda £031m 2012 £036m 
• profit before tax £004m 2012 £008m  
• cash balances up 292 to £141m at year end 
• net assets increased to £252m 2012 £238m 
 
operating 
 
• investment for growth strategy successfully implemented 
• successful transition to recurring revenue business model 
• strong year for new product and service launches including 
o trakm8 eco
n
 logistics and tacho telematics solutions  
• encouraging order pipeline and sales opportunities  
• expanding range of international opportunities 
• completion of product transfer agreement with visilink 
 
current trading 
 
• investments in new products and sales resource expected to positively impact the second half 
of new financial year and beyond  
• successful integration of visilink customers 
• year to date revenues are 23 ahead of last year