MiX Telematics prepares for tougher year ahead

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MiX Telematics prepares for tougher year ahead

Published Date: 2020-05-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

MiX Telematics prepares for tougher year ahead

The vehicle tracking and asset management solutions group has suspended guidance due to market uncertainty.

MiX Telematics says its fourth-quarter performance was solid in the face of unprecedented uncertainty cause by Covid-19, volatile exchange rates and challenges in the oil and gas market. Subscriber numbers continued to grow but a R53 million deferred tax charge and a R6.7 million foreign exchange loss resulted in a net loss for the three months to end-March, taking the shine off an otherwise strong year.

Releasing its quarterly and full-year results, the vehicle tracking and asset management solutions group said it added a net 68,000 new subscribers over the course of the year, lifting its total base to 818,000. Subscription revenue increased by 9% on a constant currency basis to R1.89 billion, taking total revenue 8.9% higher to R2.15 billion. Operating profit declined 8.1% to R311 million and net profit came in 28% lower at R145 million, impacted by the foreign-exchange loss and tax charge. Adjusted earnings per share fell 9% to 40c. It's paying a dividend of 4c for the fourth quarter, taking its total dividend for the year to 16c.

MiX said Covid-19 had disrupted the operations of its customers and channel partners, its operations and the results of its operations. It may also need to consider alternative funding sources due to the impact on capital and other financial markets, which could increase future borrowing costs.

Due to uncertainty surrounding the level of business disruption resulting from the pandemic, the company said it was suspending its usual practice of issuing financial guidance for the current quarter and the year ahead.

Its shares rose 3.5% to R5.90 yesterday.





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