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TRACKER

     
     
TRACKER’s   31.0%
As a leading player in the South African stolen vehicle recovery industry, Tracker Network (Proprietary) Limited (Tracker) has a strong monthly subscription-based income stream. Its core business is the sale and installation of vehicle tracking systems and the tracking and recovery of stolen vehicles.
     

Tracker’s contract partnership with the South African Police Service (SAPS ), in terms of which Tracker’s technology is used to track and recover stolen vehicles throughout South Africa, has proved highly successful. Since its inception in 1996, more than 34 000 stolen vehicles have been recovered, 6 500 criminals arrested and 280 chop shops and vehicle syndicates exposed through the usage of Tracker technology.

The product range currently comprises three products, namely Tracker Retrieve (stolen vehicle recovery system), Tracker Alert (Retrieve plus an early alert enhancement) and, as from 1 June 2007, Skytrax (internet-based fleet monitoring system with stolen vehicle recovery capabilities).

Overview of the year to 30 June 2007

Tracker had a successful year with 19% growth in operating profit, 24% growth in net subscribers and strong cash flow. During the year Tracker installed almost 100 000 units, while its subscriber base increased to 420 000 vehicles.

During May 2007, Tracker acquired 100% of Mobile Data, a vehicle monitoring and telematics company, previously 50% owned by WesBank, and offering a product range known as Skytrax. Tracker also acquired the technological expertise and intellectual property relating to the Skytrax technology.

As a result of the transaction WesBank holds a 32.5% stake in Tracker, with VenFin owning 31% and the Mineworkers Investment Company (MIC) increasing its shareholding to 26.5%. The remaining 10% of the equity is held by a private investment consortium.

This transaction has the potential to make Tracker the leader in vehicle communication in South Africa through stolen vehicle recovery, vehicle monitoring and telematics.The Mobile Data acquisition will increase Tracker’s database by some 49 000 to 469 000 vehicles, making it the largest vehicle communications company in South Africa. Tracker now offers a fully comprehensive service catering to the needs of individual vehicle owners, small businesses and fleet operators. Furthermore, Tracker is in a position to offer further value to certain business intermediaries, such as vehicle manufacturers, dealerships and insurance companies, by being able to provide them with vehicle information to improve their service offerings.

The Mobile Data acquisition brings advanced GSM/GPRS vehicle monitoring technology and telematics to Tracker, and will strengthen Tracker from an intellectual capital perspective. The transaction will see 130 Mobile Data staff joining Tracker, making the company a direct employer of over 1 100 staff countrywide.

BEE

MIC has been an investor in Tracker since 2000 and, prior to the Mobile Data transaction, held a 25% interest. MIC has increased its shareholding to 26.5% through the purchase of some shares previously held by the private investment consortium.

 

The future

Tracker operates in a highly competitive market. As insurers increasingly insist on the installation of stolen vehicle recovery devices as a requirement for vehicle insurance, the pressure on service providers to offer lower-priced solutions is increasing. Tracker’s management is responding to this challenge by driving down input costs, while still investing in its systems to maintain the highest possible recovery rates as well as excellent customer support services. The transaction with Mobile Data provides Tracker with a complete vehicle communications suite, broadening its potential customer base.