Market's view on Trakm8 Hldgs
Published on April 2024
- Watkins family members at the helm are perceived as arrogant and lacking in business expertise, leading to high churn rates and lost opportunities in the fleet segment.
- The company is facing difficult financial times, reflected by high-interest rates offered on Convertible Loan Notes (CLNs) to attract funding, which are primarily benefiting the directors.
- There is skepticism about the effectiveness and future of pay-as-you-go insurance products, with the suggestion that existing insurance companies are using app-based tracking to bypass traditional telematics services.
- There are doubts about the desirability of the company’s products and services to potential buyers like Microlise, despite previous investment and partnership efforts.
- The company’s financial strategies and management decisions are heavily criticized, with continuous cash flow issues and a reliance on complex financial instruments to maintain operations.
- There is a general consensus that the company’s leadership under Watkins has been ineffective, with calls for a change in management and strategy to salvage the company’s declining performance.
- Discussions about a potential takeover or buyout are prevalent, with speculation that major shareholders might step in to restructure or acquire the company at a low cost due to its ongoing financial struggles.