Get your own back: Chuck a buck at fast-moving Cartrack
Double-digit growth and aggressive expansion plans
Vehicle tracking and fleet management specialist Cartrack is one of the few JSE-listed counters that can boldly predict double-digit bottom line growth for the foreseeable future.
What stands out in the latest year to end-February results is that the core market in South Africa is still firing on all cylinders … and there are still plenty of growth opportunities to snag.A divisional breakdown showed the South African operations churning R981-million in revenue – a sprightly gain over the R861-million recorded in the 2017 financial year.
But what is impressive is the margin achieved by Cartrack’s local core. The gross profit margin was 81% and operating profit margin topped 38% – two reassuring figures when considering the company’s determination (and recent successes) in finding new growth niches in the local market. Africa still looks compelling with revenue of R105-million.
Overall the impressive cash conversion ratio and increased annuity income flows from Cartrack’s fast growing subscriber base offer a tangible underpin to directors’ double-digit growth forecasts.
But there is a slight downside. With so many growth opportunities to chase, it seems Cartrack will have to put the brakes on its generous dividend policy.