20 February 18
("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 six months ended 31 January 2018.
Group trading for the first half of the year has been strong across all parts of the business, and in line with management expectations. All key financial metrics for the six months are comfortably ahead of the previous year with Revenues in excess of £18m (2017: £15.6m), and EBITDA of over £4.3m (2017: £3.5m).
At 31 January 2018, Group cash balances remained strong at c. £18.5m (31 July 2017: £15.4m, 31 January 2017: £12.7m), which reflects continued excellent cash generation in the period. The Group continues to be debt free and highly cash generative.
The first six months of the year has seen good progress made on a number of strategic initiatives. The Group commenced work on the delivery of a major contract for our TRACS Enterprise Software for a major UK Train Operating Company, secured further work within the US for our Remote Condition Monitoring technology, and On-Trac has secured a number of bespoke software development projects within the UK.
Furthermore, our Traffic & Data Services division has traded well following the process and technology improvements that took place last year. During H2 we will begin the adoption of our Machine Learning 'Felicity' software to support our video analytics work and in doing so further cement the relationship with our investee company Vivacity Labs. We were also pleased to renew a major multi-year contract with a global engineering company which is expected to underpin a significant part of this division's income in future periods.
On 1 February we were pleased to announce the acquisition of Travel Compensation Services Limited and Delay Repay Sniper Limited. The Directors believe these businesses are highly complementary to Tracsis, and will offer significant cross sell and growth opportunities in the foreseeable future. The integration of both businesses is progressing to plan.
The Group's Interim results will be announced on or around 28 March 2018.
For more information please contact:
John McArthur/Max Cawthra, Tracsis plc
Tel: 0845 125 9162
Andrew Pinder/Seb Lawrence, Investec Bank plc
Tel: 020 7597 5970
The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.