Quartix Technologies (AIM:QTX) reported revenue of £19.4m for the six months to 30 June, up 12% from £17.3m a year earlier, as the AIM-listed vehicle tracking and fleet software provider extended its subscription-led growth.
Profit before tax rose 21% to £4.8m, from £4m, while adjusted EBIT climbed the same rate to £4.9m. Diluted earnings per share fell to 5.51p from 6.50p, reflecting a higher tax charge that included a £1.1m prior-year adjustment tied to a change in accounting policy for tracking hardware under IAS 16.
Free cash flow increased 18% to £3m, and net cash stood at £4.8m at period end, up from £4.1m a year earlier. The board proposed an interim dividend of 2.70p per share, against 2.50p last year.
Annualised recurring revenue rose 11% on a trailing 12-month basis to £38.9m, driven by a 7% expansion in the subscription base and a 3% average price increase. Net revenue retention slipped to 96.9% from 97.3%, with the UK the main drag amid higher customer attrition.
"The Group has delivered a strong financial performance in the first half, with solid growth in revenue, profit and free cash flow," said Andrew Walters, Executive Chairman, citing "increasing upsell momentum across our customer base."
The board said it remains confident in delivering market expectations for the full year, previously stated at £40.3m revenue, £10.1m adjusted EBIT and £4.9m free cash flow.
News Intelligence what this means for the company
Quartix delivered H1 revenue growth of 12% to £19.4m with profit before tax up 21%, driven by subscription base expansion (7%) and pricing increases (3% average). The company raised its interim dividend to 2.70p from 2.50p and reaffirmed full-year guidance of £40.3m revenue and £10.1m adjusted EBIT, signalling confidence in sustained momentum despite a slight softening in net revenue retention to 96.9% from 97.3%, primarily from UK customer attrition.
Profit growth outpacing revenue growth (21% vs 12%) and free cash flow up 18% to £3m demonstrate operating leverage in the subscription model. However, the decline in net revenue retention and elevated UK churn warrant monitoring—if that trend accelerates, it could pressure the full-year guidance and the pricing-led growth narrative.
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