Cartrack forecasts strong earnings growth

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The stolen-vehicle recovery company says its subscriber base had grown to more than 1-million users

Cartrack, which provides fleet-management and stolen-vehicle recovery services, says it expects double-digit earnings growth in the year to February 2020 as its subscriber base swells.

The company, which grew net profit by 16.3% in the 2019 financial year, said its subscriber base had grown by more than a fifth over the past year to more than 1-million users, making it “one of the largest telematics players globally”. “Cartrack has achieved this through a founder-led geographical expansion into underpenetrated markets that offer strong demand for the management of vehicles and drivers,” it said on Friday.

The company expects double-digit growth in total revenue, subscription revenue and earnings per share in the year to February 2020. Earnings will be boosted by “a positive trading performance and execution of the organisational plan”. The company said it is considering new markets. It is optimistic about trading conditions in Europe and Asia, “and while SA’s economy remains under pressure, we continue to be well positioned to continue to grow”.

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