Listings Information

Pre-Listing Statement

Pre-Listing Statement (abridged version) –  Download PDF
Pre-Listing Statement (full version) –  Download PDF

Fact Sheet

Fact Sheet – Read More

Investment Case

Cartrack has a history of strong cash flow generation and cash conversion, low financial leverage and strong dividends.

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Subscription growth and scale in all geographies

Our business is annuity income driven, with 88% of revenue generated from subscription income. Growing the number of subscribers is key to long term sustainable value creation.

Geographical expansion is costly and only creates value if sufficient scale is achieved for the businesses to be profitable. Cartrack has a proven expansion model with well-established operations across a number of countries, as well as greenfield developments in regions such as Asia and the USA. There is a strong focus on growing these newly established businesses to scale as quickly as possible.

Availability of skills

Significant growth comes with additional requirements for distribution infrastructure and skills. In South Africa specifically, the challenge is to find the technical skills to keep up with the demand. We established the Cartrack Academy three years ago to develop these skills and have also started an apprenticeship programme to meet this demand.

Geographical diversification of income streams

Geographical diversification improves the resilience of our business by reducing Cartrack’s dependency on the vagaries of individual economies and customer groups.

Cartrack has a strong focus on extending its subscriber base and, at the same time, continuing to diversify the base across a range of dimensions. These include diversification across the types of subscriber, the types of income from subscribers, as well as the geographies covered.

The graph below indicates the extent of the diversification since 2012.

Culture transfer into new regions

As we continue to expand globally, it is imperative to instil a universal set of values and way of doing business across all operations. Cultural fit is considered during the recruitment process. Our policies and processes apply globally and regular awareness sessions and training are done, both face-to-face and electronically. Senior management undergoes induction training in South Africa and general training is offered in-country. Senior management and key staff attend annual workshops. Risk and compliance reports are regularly submitted to the board.

Remaining at the forefront of the technology spectrum and utilising data to provide a competitive edge

In an industry where new application of technology and data are among key growth drivers, a deep understanding of emerging trends and continuous innovation are critical ingredients for successful value creation. Cartrack’s customer proposition, competitive positioning and capacity to expand globally are strongly linked to its technological platform. Cartrack invests heavily in R&D and technology platforms undergo continuous evolution to adapt to new compliance requirements, customer demands and developing trends. Our participation in sophisticated international markets with complex logistical and regulatory requirements which demand an advanced level of functionality, is stimulating Cartrack’s development of innovative technologies. Cartrack has been able to develop and apply such learnings globally.

We have developed an extensive competitive database of behavioural and technical data over a number of years. Data analytics have the potential to add substantial new revenue streams to Cartrack and additional value-added services for customers. The launch in 2018 of our R9,99 insurance product is a good example of how data can be utilised to give Cartrack a competitive edge.

Service excellence and customer retention

Cartrack maintains a strong focus on exceptional service from every customer facing aspect of its business. As a result, customer retention is high, with the average lifecycle per customer currently at more than 64 months. This compares favourably to capitalised rental units which are depreciated over 36 months, indicating a substantial increase in profitability in the period post depreciation. Keeping customers for longer through service excellence and a superior product offering is, therefore, highly beneficial to the long-term profitability of the company.