Quartix (QTX) Share Price Plunged 32.8% on Latest Trading Update

The Quartix Technologies PLC (LON: QTX) share price plunged 32.75% after issuing a trading update regarding the milestones achieved by the company, including the return of its founder and former CEO, Andy Walters, as the company’s new chairman.

During Walters's brief time back at the company, he has already led a preliminary review of the business on behalf of the board, and the review results were summarised in today’s update. The chairman reviewed Quartix’s telematics subscription base and the impact of 4G network migration in Europe. 

The founder also reviewed the acquisition of Konetik Deutschland GmbH (Konetik) and EVolve and the financial outlook for this year and the next.  The report outlines that the company has continued increasing its telematics subscription base. 

Quartix noted that its annualised recurring revenues from its fleet subscription base was £28.7m on 1 October 2023. The figure represents an increase of £2.1 million compared to last year in constant currency terms based on foreign exchange rates as of 1 October 2023. 

The company has grown its subscription base by 13.0% annually to just under 259,000 vehicles. The firm also noted that new units installed in the first nine months of 2023 have risen by 4.3% compared to last year. 

Quartix also issued an update about its acquisition of Konetik, which provides the critical technology used within its EVolve product. The company noted that the EVolve product is a tool that assists fleet managers with planning their migration to electric vehicles, including evaluating their costs, environmental benefits and potential savings. 

Konetik was founded in 2014 and has four permanent employees based in Berlin, Germany. The company generated revenues worth €0.12 million in the twelve months to 31 December 2022, compared to the €0.14 million it generated in 2021, indicating that its revenues are falling. 

Quartix is acquiring Konetik for a fixed consideration of €2.5 million and will pay €2.25 million once the deal is completed, with the remaining €0.25 million being paid a year later. 

The company also noted that two major network providers in France have brought forward their plans to switch off 2G networks, supporting only 4G in the future. Therefore, about 50,000 Quartix tracking systems will need to be replaced by the Company's customers over the next three years.

Quartix (QTX) share price.  

The Quartix share price plunged 32.75% to trade at 134.50p, from Thursday’s closing price of 200.00p.