("Tracsis" or the "Group")
Tracsis plc, a leading provider of software and services for the traffic data and transportation industry, is pleased to provide the following trading update for the year ended 31 July 2017.
Group trading for the year has been in line with market expectations. Revenues for the year were in excess of £34m (2016: £32.6m) with good trading experienced throughout all parts of the business. EBITDA and Adjusted Profit are expected to be in line with market expectations and also ahead of the previous year (2016: EBITDA £7.6m, Adjusted Profit £6.9m).
As anticipated and communicated at the interim results, the second half of the financial year was considerably stronger than the first half. H2 revenues were c. £19m (H1 2017: £15.6m), and profitability was also stronger in the second half (H1 2017: EBITDA £3.5m, Adjusted Profit £3.1m).
At 31 July 2017, Group cash balances remained strong at c. £15m (2016: £11.4m), which reflects excellent cash generation in the year and after paying contingent consideration of £1.1m in respect of acquisitions made in 2015 (SEP and On-Trac). The Group continues to be debt free and highly cash generative.
The Board is pleased with the momentum experienced during the year, with highlights including a significant multi-million pound contract win for our TRACS Enterprise Software, successful delivery of a North American contract for our RCM technology, and strong trading for our recently-acquired business On-Trac and SEP. Furthermore, the Group has now completed a series of structural changes (people, systems and processes) to our Traffic & Data Services Division which should lead to improved margins in this division going forward. Aligned with this aim, the Group was pleased to make a strategic investment in Vivacity Labs Limited, a machine learning software business that should bring significant operational benefits to Tracsis and enhance our analytics capabilities.
The combination of these initiatives, our continued diversification, a good pipeline of M&A prospects, and anticipated industry momentum leaves the Group well positioned as we enter the new financial year.
Full Year results will be announced to the market in November 2017.
For more information please contact:
John McArthur/Max Cawthra, Tracsis plc
Tel: 0845 125 9162
Andrew Pinder/Matt Lewis/Sebastian Lawrence, Investec Bank plc
Tel: 020 7597 4000