Marc Hasenfuss Editor-at-large

In a market that is slow to applaud companies making valiant operational and strategic progress in dour trading conditions, it is heart-warming to see that the share price of vehicle tracking specialist Cartrack has accelerated more than 35% over the past six months. This is quite a comeback, given that Cartrack’s share price stalled late last year after it announced a more conservative dividend policy to allow it to capitalise on the many growth opportunities on its radar.

It seems the market is now content to forgo bigger cash distributions, with Cartrack’s year to end-February results confirming that business remains brisk. There’s a reassuring annuity underpin, with subscriber growth up 28% to 960,798 and subscription revenue up 30% to over R1.5bn. Cash generated from operations was up 16% to R544m — which may give shareholders cause to ponder whether the more conservative dividend policy may indicate a sizeable acquisition in the offing.

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