The contract will be delivered over four years and includes the renewal of some existing systems already licenced by the customer. Whilst significant for Tracsis, the contract will not have a financial impact in the current financial year (ending 31st July 2017) but helps to underpin our confidence for the future. For reasons of agreed commercial confidentiality the specific customer cannot be named.
This award follows a comprehensive procurement process where Tracsis was able to successfully demonstrate the functionality and value of existing software products and new innovations. Assuming the contract is fulfilled on time and to the satisfaction of the customer there should be a high degree of recurring revenue beyond the four year period. Given the size and materiality of the contract, the award represents a step change in Tracsis' ability to tender for and win major technology projects and should pave the way for similar sales in the future with other transport operators both within the UK and abroad.
John McArthur, Chief Executive Officer, commented:
"We are absolutely delighted to have secured this major contract with a long standing rail customer and look forward to delivering this project in the coming months. The size and scale of the project is significant for Tracsis and represents the wholescale change that UK transport is going through in adapting to the growing operational demands placed upon the network. This win is testament to our team and our product suite and we believe successful delivery of this project will lead to our Enterprise systems being adopted elsewhere in the fullness of time"
For more information please contact:
John McArthur/Max Cawthra, Tracsis plc - 0845 125 9162
Matt Lewis, Dominic Emery Investec Bank plc - 0207 597 4000
Related regulatory news article: Significant Contract Win