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(Sharecast News) - Quartix Technologies reported robust trading for the six months ended 30 June on Thursday, with management estimating a 9% rise in revenue to 17.5m and a 30% increase in EBITDA to 3.6m.
Profit before tax was expected to match EBITDA, up from 2.7m in the same period last year, despite absorbing 0.4m of reorganisation costs.
Free cash flow was forecast to more than double to 2.6m, with a closing cash balance of 4.1m.
The company said it remained on track to meet market expectations for revenue and EBITDA, and expected to slightly exceed expectations on free cash flow.
It also intended to raise its interim dividend to 2.5p per share, up from 1.5p last year.
Annualised recurring revenue (ARR), a key metric for the subscription-based telematics group, rose 2.7m during the period to 35m.
That, the board said, represented a 31% increase in growth versus the same period in 2024.
On a trailing 12-month basis, annual recurring revenue rose 4.1m, or 13%, while net revenue retention improved from 95.7% to 97.3%.
Customer acquisition also saw solid progress, with 3,962 new customers added - up 13% - and 40,698 new subscriptions, a 7% increase.
Growth was the strongest in newer markets such as Italy and Spain, where annual recurring revenue expanded 38% and 36% respectively.
In June, Quartix consolidated its two main software teams to streamline development and improve efficiency, with expected annualised cost savings of 0.5m from July.
The reorganisation also created a dedicated front-end team focused on enhancing user experience and supporting further growth in subscription revenue.
"We have made strong progress in the first half of 2025," said executive chairman Andy Walters.
"Over the past 12 months our annualised subscription revenues have risen by a record 4.1m to 35m; we finished the first half with a substantial order backlog for installation in July and August."
Quartix said it would publish its interim results on 24 July.
At 1250 BST, shares in Quartix Technologies were up 3.88% at 249.3p.
Reporting by Josh White for Sharecast.com.