Quartix Technologies – eagerly awaiting next week’s AGM Trading Update, shares 265p, brokers TP 400p

Mark Watson-Mitchell - 14.04.2026

Capitalised at just £128m, Quartix Technologies (LON:QTX) is one of Europe's leading suppliers of subscription-based vehicle tracking systems, analytical software and services.

It recently released a very good set of results for last year, and I am looking forward to the group’s pre-AGM Trading Update, due on Wednesday, 22^nd April, which could well help to push the group’s shares, now 265p after a 9% rise yesterday, back up towards the 330p level again.

The Business

Based in Newtown, Wales, this group was set up in 2001 by four industry professionals in the UK, who had a combined experience in systems design, telemetry, embedded computing, communications and database design and implementation.

It handles the design, development, marketing and delivery of vehicle telematics services and is a supplier of subscription-based vehicle tracking systems, analytical software and services.

The company provides an integrated tracking and telematics data analysis solution for fleets of commercial vehicles that is designed to improve productivity and lower costs by capturing, analysing and reporting vehicle and driver data.

Its solutions include global positioning system (GPS) Vehicle Tracking, Driver Behaviour, Driver ID, Fleet Management Tools, Geofencing, Electric Vehicle Tracking, Vehicle Inspection App, and Trip Reports.

Its Vehicle Inspection application Quartix Check, which is a daily vehicle inspection and monitoring tool.

Its geographical markets include the UK, France, Other European Territories, and the USA.

Globally the group now has more than 33,000 fleet customers.

In fact, across some 8 countries, it has installed more than 800,000 units since its establishment.

Each month it signs up about 400 new businesses to its services.

The Quartix vehicle tracking lets fleet managers view the live location of their fleet vehicles, at any time, from any device.

Fleet managers from many sectors benefit from the tracking services provided.

And this is the bit that I really like – some 95% of the group’s revenue is derived from recurring subscription services.

As an example, a range of Quartix unit customers operate in various sectors, tracking vehicles, and thus operatives, in:

Building and construction:  like excavation, painting and decorating, plumbing, electrical services, bricklaying, flooring, drywall, roofing, siding, and air conditioning.

Trades and field services:  such as sign installation/ maintenance, shopfitting, pest control, merchandising, machine tools, replacement windows, cleaning, and environmental services.

Transportation:  covering the full range of transportation services, including trucking, courier and dispatch work, taxis and specialised services such as the transportation of fine art and valuables.

Security:  including CCTV installation, patrol car monitoring, staff transportation, monitoring of expensive plant and machinery, and locksmiths.

Distribution:  such as for raw materials, food, poultry, packaging, hardware, electrical goods, jewellery, and component distribution.

The 2025 Final Results

On Wednesday 25^th March, the group reported strong financial results for its 2025 year, with revenue increasing by 12% to £35.7m and pre-tax profit rising by 34% to £8.7m.

EBITDA grew by 23% to £13.2m, and diluted earnings per share increased by 25% to 13.17p.

Free cash flow more than doubled to £5.2m, and the company proposed a final dividend of 7.5p per share, bringing the total for the year to 10p.

Well worth noting was the fact that the group’s annualised recurring revenue (ARR), a key performance indicator, saw record growth of 14% to £37.0m, with the subscription base expanding by 11% to 333,922 vehicles.

Management Comment

Chairman Andy Walters stated that:

"2025 was an exceptionally good year for Quartix both financially and strategically: profit before tax increased by 34% to £8.7m on revenue of £35.7m. 

Earnings per share increased by 25% to 13.18p.

Annualised recurring revenue, our most significant indicator of future revenues, grew by a record £4.5m, or 14%, to £37m.

The subscription base grew by 11% in the year to 334,000 vehicles, of which 50% are outside the UK.

Improved operational efficiency, cost reductions, increased marketing investment and technical innovation all contributed to this strong set of results.

Free cashflow more than doubled to £5.2m and we are recommending a final dividend of 7.5p per share, giving a total of 10.0p for 2025.

The outlook for 2026 is very encouraging.”

The Equity

There are some 48.43m shares in issue.

The largest holder is Founder Andrew Walters (22.43%), while other private investors include Andrew Kirk (8.28%), William Hibbert (5.50%) and Kenneth Giles (3.86%).

The larger professional holders include Liontrust Investment Partners (9.96%), Charles Stanley Investment Management (8.18%), Sanford DeLand Asset Management (6.44%), Schroder Investment Management (6.43%), and JP Morgan Asset Management (3.14%).

Analyst Views

At Cavendish Capital Markets, its analysts Michael Hill and Kimberley Carstens have a Buy note out on the group’s shares, with a 400p Target Price.

They state that the recent upgrades highlight that Quartix is excellently positioned to continue to outperform, with the potential for further revenue upside, further enhancements to gross margin, and further optimisation of overheads driving upside to EBIT and EFCF.

The brokers consider that Quartix is focused on scaling its Fleet subscription business, which benefits from recurring revenue of over 95%, and differentiates due to an outstanding quality of service.

To further increase net revenue retention, it is enhancing the platform’s capabilities, while selectively investing in growth in international markets.

The analysts look forward to the group’s robust operational and financial momentum continuing through FY26, and to further updates in the coming months.

They estimate that the current year to end-December will show an increase in revenues to £40.2m (£35.7m), with adjusted pre-tax profits of £10.1m (£8.7m), lifting earnings up to 16.3p (13.3p) while holding its dividend steady at 10.0p (10.0p) per share.

At Edison, analysts Dan Ridsdale and Ross Jobber see the group’s recurring revenues continuing to build.

They also note that the FY25 results deliver more of what investors have come to expect from Quartix – that is the strong growth in customers, revenues, profits and cash that can only come from having a laser-focus on key business metrics.

For the current year they have pencilled in £41.0m revenues, £9.4m pre-tax profits, 14.60p of earnings, and paying out 11.0p per share in dividend.

My View

Oh – just how much do I like to see ‘recurring revenues’ – they must be a Finance Director’s dream.

And that is what Quartix offers, while its shares at just 265p, could easily rise to trade back into 330p price range within the next year.

Hopefully, positive comments ahead of next Wednesday’s AGM will help the progress.

(Profile 17.10.2024 @ 150p set a Target Price of 185p*)

(Profile 04.07.25 @ 249p set a Target Price of 300p*)

mark@sqcresearch.com