Cartrack shares race to high

Shares in vehicle tracking and fleet management specialist Cartrack sped to a new high on Friday after the release of a highrevving business update.

Shares in vehicle tracking and fleet management specialist Cartrack sped to a new high on Friday after the release of a business update.

Cartrack shares touched a record high of R20 before settling back at R18.50 at the close of trade — nearly 3% up on the previous day’s close.

The company disclosed growth of more than 85,000 subscribers since the start of September 2017 to more than 750,000 subscribers globally. There was subscriber growth of 65,812 net additions in the first six months to end August of the 2018 financial year.

Cartrack has a core market in SA but has expanded into several African markets, Europe, the Asia-Pacific region, the Middle East and the US.

The company said year-onyear subscriber growth to date was about 25%.

Cartrack CEO Zak Calisto said the company had also launched a first-to-market insurance offering for vehicle theft targeting the previously uninsured market in SA.

THEFT INSURANCE

He said the company was able to leverage its audited 93% recovery rate and abundance of insurance telematics data as well as investment in research and development to offer theftonly vehicle insurance for R9.99/month if a Cartrack telematics device is installed.

Calisto said the low-cost theft insurance product would provide an essential service to the uninsured. “The theft of a vehicle, and in many cases with no means to fund a replacement, is a real threat for lower-income families facing financial pressure.”

Opportune Investments CEO Chris Logan — a shareholder in Cartrack — said the business update was exciting, with the subscriber growth of 25% the fastest growth rate since numbers were provided in 2011.

He reckoned the low-cost, theft-only insurance product would be a boon for car owners who were unable to afford insurance.

“This demonstrates the entrepreneurial nature of the executive team at Cartrack.”