Cartrack more than quadruples interim dividend
The vehicle tracking company says the Covid-19 pandemic has not affected interest in its software
Cartrack, which provides fleet-management and stolen-vehicle recovery services, has more than quadrupled its interim dividend after reporting that the Covid-19 pandemic failed to dull interest in its software.
The group has opted for a R260m interim dividend for the six months to end-August, or 87c per share, up from 20c in the year-earlier period.
Revenue grew 16% to R1.08bn, while the group added 13% more subscribers, bringing the number of subscibers to 1.17-million. Group profit rose almost 20% to R267.8m.
Cartrack said it remained highly cash generative with a strong cash flow forecast for the foreseeable future, opting to proceed with the dividend payment.
The telematics firm, which started operating in 2004 in SA, providing stolen recovery services. It subsequently expanded to 24 countries and five continents.
“Our predictable and resilient subscription-based business model, combined with our strategic broad industry approach and low customer and industry concentration risk has resulted in Cartrack delivering consistently strong year-on-year subscriber, subscription revenue and operating profit growth,” said CEO Zak Calisto.
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