Our opinion on the current state of MIX

9 Kas 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 six months to 30th September 2023 the company reported revenue up 13% and increase of 87900 subscribers to bring the total to 1,089m. The company said, "Profit for the period of R38 million - Adjusted EBITDA up 58% year-over-year to R343 million, at an adjusted EBITDA margin of 24.8%". What is interesting is that the volumes traded have increased and now average about R232 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.