Quartix Technologies : Interim Report 30 June 2021

Interim Financial Statements Quartix Technologies plc

For the half year ended 30 June 2021

The unaudited interim results to 30 June 2021 for Quartix Technologies plc are set out below:

Statement of Directors' responsibilities

The Directors are responsible for preparing the interim financial report, in accordance with applicable law and regulations.

As permitted, this Interim Report has been prepared in accordance with UK AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting".

These interim financial statements do not include all the information required in annual financial statements in accordance with IFRS and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2020.

By order of the Board of Directors on 27 July 2021.

Andrew Walters

Chief Executive Officer

Company No.06395159

Quartix Technologies plc	1
Financial statements for the half year ended 30 June 2021
Contents
	Page
Highlights	2
Chairman's Statement	5
Consolidated statement of Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash flows	12
Notes to the Consolidated Financial Statements (unaudited)	13
Company information	19

Quartix Technologies plc	2
Financial statements for the half year ended 30 June 2021

Highlights

Financial highlights

• Group revenue decreased by 5% to £12.5m (2020: £13.1m) o Fleet revenue1 grew by 7% to £11.6m (2020: £10.8m)
  o Fleet revenue represented 93% of total revenue (2020: 85%)
  o Insurance revenue2 decreased by 61% to £0.9m (2020: £2.3m)
• Adjusted EBITDA3 of £2.7m (2020: £4.6m)

1. Fleet telematics services profits4 increased by 3% to £9.0m (2020: £8.7m)

• 1. Fleet customer acquisitions investment5 increased by 25% to £4.1m (2020: £3.2m) o Insurance segment profit6 decreased by 65% to £0.5m (2020: £1.3m)
• Operating profit of £2.1m (2020: £4.3m)
• Profit before tax of £2.0m (2020: £4.3m)
• Diluted earnings per share of 3.66p (2020: 7.48p)
• Free cash flow7 of £1.4m (2020: £3.2m)
• Interim dividend of 1.50p per share proposed (2020: 2.50p plus supplementary 0.87p giving a total of 3.37p)

1. Total Fleet segmental revenue (see note 3)
2. Insurance segmental revenue (see note 3)
3. Earnings before interest, tax, depreciation, amortization and share based payment expense (see note 5)
4. Profit for the Fleet Segment before customer acquisition costs and central fleet costs (see note 3)
5. Sales, marketing, net equipment, net installation and carriage cost for new fleet customers (see note 3 for full explanation)
6. Insurance segmental profit decreased as a result of a reduced volume in the segment (see note 3)
7. Cash flow from operations after tax and investing activities

Quartix Technologies plc	3
Financial statements for the half year ended 30 June 2021

Key Performance Indicators ("KPIs")

The KPIs are used by the Board to assess the performance of the business are listed below and discussed in the Chairman's statement.

Period ended 30 June	2021	2020	% change
Fleet subscriptions1 (new units)	25,493	19,454	31
Fleet subscription base2 (units)	188,155	173,793	8
Fleet customer base3	20,698	19,039	9
Fleet attrition (annualised)4 (%)	12	12
Price erosion5 (%)	7	8
Fleet revenue6 (£'000)	11,610	10,841	7
Fleet invoiced recurring revenue7 (£'000)	11,052	10,200	8
Annualised recurring revenue8 (£'000)	22,972	21,477	7
Insurance installations9 (new units)	3,543	9,915	(64)
Insurance revenue10 (£'000)	883	2,257	(61)

1. New vehicle tracking unit subscriptions added to the subscription base in 6 months to 30 June before any attrition
2. The number of vehicle tracking units subscribed to the Group's fleet tracking services, including units waiting to be installed for which subscription payments have started or are committed (comparative Dec 2020)
3. The number of customers associated with the fleet subscription base (comparative Dec 2020)
4. The number of new vehicle tracking unit subscriptions, less the increase in the subscription base, expressed as a percentage of the mean subscription base
5. The annual decrease in average subscription price of the base expressed as a percentage of the average subscription price at the start of the period, all measured in constant currency
6. Total Fleet Segment revenue (see note 3)
7. Invoiced subscription charges before provision for deferred revenue
8. Annualised data services revenue for the subscription base at 30 June, before deferred revenue, including revenue for units waiting to be installed for which subscription payments have already started or are committed
9. The number of new vehicle tracking installations in the Insurance Segment
10. Insurance Segment revenue (see note 3)

Quartix Technologies plc

4

Financial statements for the half year ended 30 June 2021

Fleet

Good progress in the fleet business

UK (including Ireland)

• New fleet subscriptions increased by 21% to 12,055 units (6 months June 2020: 9,994)
• 120,451 active vehicle subscriptions, up 5% (31 December 2020: 115,065)
• 10,943 customers, up 4% (31 December 2020: 10,573)

France

• New fleet subscriptions increased by 42% to 5,631 (6 months June 2020: 3,957)
• 35,364 active vehicle subscriptions, up 13% (31 December 2020: 31,345)
• 4,811 customers, up 12% (31 December 2020: 4,299)

Other European territories

• New fleet subscriptions increased by 140% to 2,955 units (6 months June 2020: 1,229)
• 6,494 active vehicle subscriptions, up 66% (31 December 2020: 3,904)
• 1,429 customers, up 55% (31 December 2020: 920)

USA

• New fleet subscriptions increased by 14% to 4,852 units (6 months June 2020: 4,274)
• 25,846 active vehicle subscriptions, up 10% (31 December 2020: 23,479)
• 3,515 customers, up 8% (31 December 2020: 3,247)

Insurance

• Insurance installations decreased by 64% to 3,543 (6 months June 2020: 9,915)
• Insurance revenue decreased by £1.4m (61%) to £0.9m (6 months June 2020: £2.3m)