Fleet and mobile asset management solutions group MiX Telematics has celebrated the tenth anniversary of its JSE listing by ending the year to March 31, 2018, with strong results.
The group, which was established in 1996 – and is perceived to be the industry underdog that “missed the boat” – listed on the JSE in 2008, followed by a capital raising on the New York Stock Exchange in 2013, says CEO and founder Stefan Joselowitz.
The listing aimed to establish a global brand, streamline the company’s structure, instill a common culture and focus, achieve a “big win” and “deliver the numbers”, he explains.
MiX further embarked on a rebranding early in 2008 to align the company with its vision of becoming the leading global provider of information and related services for mobile assets.
Ten years later, MiX is a now a global player with yearly revenues in excess of R1.7-billion, offices in nine countries and a network of more than 130 fleet partners worldwide.
Subscriptions grew from 200 000 in 2008 to 600 000-plus in 2018, along with its market capitalisation, which expanded from R902-million in March 2008 to R5.1-billion in May 2018.
This culminated in the company being recognised as the best-performing technology stock on the JSE in 2017.
“We are well positioned to maintain its momentum in the 2019 financial year and beyond, as MiX continues to leverage its global reputation and proven track record,” says Joselowitz.
During the year ended March 31, MiX posted a profit of R181.2-million, surging from R121.4-million in 2017.
Operating profit increased 56% from R137.9-million in 2017 to R215-million in the year under review, with an operating profit margin of 12.6%, compared with the 9% achieved in 2017.
Earnings per diluted ordinary share were 32c in the 2018 financial year, compared with the 19c reported in the prior year.
During the year, the company made significant progress towards achieving its long-term adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) margin target of 30%-plus.
The company posted an adjusted Ebitda of R442-million in the 2018 financial year, up 47% year-on-year and ahead of guidance, with an adjusted Ebitda margin expansion in excess of 600 basis points from 19.6% in 2017 to the current 25.8%.
“This performance was due to ongoing strength across the portfolio globally, although our premium fleet portfolio was the dominant contributor,” Joselowitz says.
The fleet portfolio comprises two-thirds of the company’s revenue, with the technology management of fleets averaging 50 vehicles or more, with 21 fleets in excess of 2 500 vehicles.
MiX has a subscriber base of over 676 000 subscribers, with a subscription revenue of R1.4-billion, up 15.7% in 2017, owing to an 8.8%, or 54 800, increase in subscribers during the year to March.
Total revenue for 2018 was R1.7-billion, an increase of 11.2%, compared with the R1.5-billion reported in 2017.