JOHANNESBURG – Cartrack shares shot up by more than 7 percent on the JSE last week after the fleet management and vehicle tracking firm said it achieved robust growth of over 20 percent largely due to a growing demand for telematics services, globally and in South Africa.
The company said in a trading update to investors on Wednesday last week that both its subscriber base and subscription revenue indicated growth of more than 20 percent despite the subdued economic conditions.
This would be the seventh consecutive set of double-digit growth results for Cartrack, which will report on its half-year results on October 23.
The company, headed by founding majority shareholder Zak Calisto, attributed the exceptional performance in difficult times to the demand by small to large fleet owners for its fleet management platforms that enables tighter operational control to save companies costs and drive efficiencies.
He said the company’s sophisticated business intelligence platforms in conjunction with its consistent track record in maintaining an industry leading vehicle recovery rate of 92 percent is the main factor in Cartrack being the company of choice for South Africans.
It reported that its half-year headline earnings per share were now projected to increase to between 69 cents and 75 cents per share, up from 57 cents in the previous reporting period.
While the group delivered growth in all its key regions, it was eyeing an improvement in the rest of the African continent. In the previous period it had delivered an improved performance in Africa, despite operating in a weak regional economic backdrop.
“Africa continues to play a critical role in ensuring a high level of service to customers who increasingly travel across their borders,” the group said.