DURBAN – Cartrack Holdings added nearly a billion to its market cap on Wednesday after the vehicle tracking company released a favourable trading update for the six months to end August, with half-year earnings expected to rise as much as 22 percent.
The group told its shareholders that it expected headline earnings per share (Heps) to rise between 20 percent and 22 percent, to be between 87 cents a share and 88c for the six months to end August from 72.3c last year.
It said basic earnings per share (Eps) were also projected to increase between 20 percent and 22 percent, to be between 87c and 88c from 72.2c compared to a year earlier. Tthe group said it, however, experienced significant distribution difficulties in the reporting period as a result of the limited capacity to install the in-vehicle IoT technology due to the imposed Covid-19 operating restrictions.
“Despite these challenges, the group expects to deliver a robust earnings result in line with a significant increase in subscription revenue,” it said.
“The anticipated results show the continued acceleration in demand for Cartrack’s software platform and the resilience of the business model in difficult trading conditions,” the group said.
Cartrack closed 9.44 percent higher at R32.70. The group is expected to release its half-year results next month.