Trakm8 Holdings is proposing to raise approximately £3 million through a share subscription.

The global telematics and data insight provider, which works with well-known customers including the AA, EON, Iceland Foods and Direct Line Group, said the proceeds will fund general working capital requirements.

The money will also further strengthen the group's balance sheet.

The company's directors are contributing £700,000 to the subscription, which includes a key strategic investor, Microlise Group.

It comes just weeks after Trakm8 published its latest half-year results, revealing that it had fallen into the red and suffered a significant drop in revenue after a "disappointing" six months.

The company posted revenue of £8.84 million for the six months to 30 September 2018, a drop of 38 per cent from £14.15 million in the same period in 2017.

Trakm8 suffered a pre-tax loss of £2.46 million, compared with a profit of £363,000 a year earlier.

Executive chairman John Watkins said it was a "disappointing set of results".

"All of the group's key financial metrics are down in comparison to the prior period and the full financial year ended 31 March 2018," he said at the time.

"However, we have continued to focus on driving operational improvements in the business to position ourselves for sustainable and profitable growth."

Trakm8 is headquartered in the West Midlands and has been listed on the AIM market of the London Stock Exchange since 2005.

Through its own technology, the company collects over three billion miles worth of data each year, which is then developed to provide insights for the fleet management, insurance and car manufacturing industries, among others.