Our opinion on the current state of MIX

8 בנוב׳ 2023

Mix Telematics (MIX) is a company which specialises in vehicle tracking technology and has operations in South Africa, Australia, the UK, the US, Brazil, Thailand, and Romania. It is a service company which means it has very low working capital and receives a high proportion of its income as annuity or debit-order income. This means it is the best kind of company for private investors. It can expand its global footprint virtually without limit and does not have a cumbersome workforce or vast amounts of capital tied up in assets. In its results for the year to 31st March 2023 the company reported subscribers up by 186700 which takes the total number of subscribers to over one million. Revenue increased 10% and the company made a profit of R74m. The company said, "Total revenue was R2,462.8 million, an increase of 15.7% compared to R2,129.1 million for fiscal year 2022. On a constant currency basis, total revenue increased by 10.3%. Hardware and other revenue was R311.5 million, an increase of 6.3%, compared to R293.0 million for fiscal year 2022". In a trading statement for the six months to 30th September 2023 the company estimated that HEPS would be 7c per share compared with a loss of 0,4c in the previous period. What is interesting is that the volumes traded have increased and now average about R254 000 worth of shares changing hands every day. This may mean that institutional investors are beginning to take notice and invest in this share. The share looks cheap at current levels. On 10th October 2023 the company announced that it was to merge with a US company, Powerfleet, and delist from the JSE. At the same time Powerfleet will list on the main board of the JSE through a secondary inward listing to ensure continuity of trade.