Quartix, one of the UK\u2019s leading vehicle tracking specialists, reports record sales and new installations for 2011, with exceptionally strong growth forecast for 2012.<\/p>\n
Andy Walters, the company\u2019s managing director, said: \u201cTelematics is entering its most exciting phase yet, as the technology becomes more widely deployed in the commercial market and as it gains rapid acceptance in the private insurance sector.<\/p>\n
\u201cOnly those companies having complete design ownership and control, together with the cash flow to invest in its technology, will prosper in this dynamic environment. We are uniquely placed to take advantage of these opportunities, as we have both the technical and financial strength to take a leading position.\u201d<\/p>\n
Quartix operates a competitive direct rental model: customers signing up to a 12-month contract are offered free installation and only need to make initial payments of just \u00a310 a month. Despite this revenue model, sales leapt by 46% to \u00a37m in the year.<\/p>\n
Quartix supplied just under 20,000 vehicle tracking systems in 2011. This represented an increase of 125% over 2010 and brought the total number of systems installed to more than 50,000.<\/p>\n
No less than 1300 new fleet customers chose the company\u2019s flexible rental option.<\/p>\n
In addition, substantial investments were made in research and development for the company\u2019s insurance sector business and in the development of its French market, where it won 180 new fleet customers in its first full year of trading.<\/p>\n
Despite allocating large sums for investment, pre-tax profit increased by 10% to \u00a31.8m, while sales growth is currently expected to be at least 50% in 2012 as benefits from the investments materialise.<\/p>\n
During the first half of this year, Quartix expects to launch new supply agreements with at least five leading insurance customers \u2013 in both the private and commercial sectors \u2013 providing a significant endorsement of its technology.<\/p>\n
Mr Walters commented: \u201cThe requirements of the insurance and fleet sectors are converging as the need to monitor driving behaviour is driven by the cost of fuel and insurance. These costs have sky-rocketed in the past twelve to eighteen months, and our technology can save customers money on both counts.<\/p>\n
\u201cBy reviewing harsh acceleration and braking, and controlling speeding, customers can reduce fuel usage and insurance premiums. We can monitor each driver\u2019s performance using the accelerometer and firmware in our system without needing a separate connection into the vehicle CAN bus \u2013 this is a major competitive advantage for us.\u201d<\/p>\n
The only cloud on the horizon for the industry, according to Mr Walters, is the resurgence of lease-finance contracts.<\/p>\n
He said: \u201cUnder this model, customers are asked to commit to payments of \u00a31000 or more per unit \u2013 over an extended period \u2013 to a bank or finance house, despite the fact that the tracking system has a value of \u00a3300 or less.<\/p>\n
\u201cThe supplier gets all his payment on day one and is free to spend it as he sees fit, without necessarily providing for the proper support of the client over the term of the contract.<\/p>\n
\u201cIf the supplier goes under \u2013 as happened extensively in the last recession \u2013 customers are still left with the payments to make, which comes as a major shock to them. Several significant suppliers are resorting to this type of contract again, and I can only believe this is driven by cash-flow issues again. This practice must stop before it gives the industry a bad name.\u201d<\/p>\n
Quartix strongly advises prospective customers to check the credit rating and financial health of its tracking system supplier before entering into any third-party finance arrangement.<\/p>\n","protected":false},"excerpt":{"rendered":"
Quartix, one of the UK\u2019s leading vehicle tracking specialists, reports record sales and new installations for 2011, with exceptionally strong growth forecast for 2012. Andy Walters, the company\u2019s managing director, said: \u201cTelematics is entering its most exciting phase yet, as the technology becomes more widely deployed in the commercial market and as it gains rapid […]<\/p>\n","protected":false},"author":27,"featured_media":25177,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1571],"tags":[],"topic":[],"qtx_fblgauthor":[],"class_list":["post-26063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\n