("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 2019.
Group trading for the first half of the year has been in line with management expectations. Group revenues are expected to be ahead of the previous year at c. £19m (2018: £18.1m). EBITDA and Adjusted Profit are also expected to be ahead of the previous year (2018: EBITDA £4.3m, 2018: Adjusted Profit £3.9m).
The Group was pleased to have completed the acquisitions of both Compass Informatics Limited ('Compass') and Cash & Traffic Management Limited ('CTM') in January with the full six month impact coming in the second half of the financial year. The Directors believe both acquisitions are highly complementary to the Group's Traffic & Data Services division with good potential for further growth in the coming years.
At 31 January 2019, Group cash balances remained strong at £18.7m (31 July 2018: £22.3m, 31 January 2018: £18.5m), which reflects continued excellent cash generation. This is after the cash outflow in respect of acquisitions made and the final contingent consideration in respect of the Ontrac acquisition from 2016.
General trading across the Group remained busy throughout H1. In January, the Group announced a significant five-year Framework Agreement with a major Train Owning Group for its TRACS Enterprise product. This roll out is well underway and revenues from this contract are expected to be realised in the second half of the financial year and beyond. The Group's RCM offering experienced positive trading conditions, Ontrac secured a multi-year software deal at Crossrail and TCS were awarded a new multi-year contract for our delay repay offering. Our Traffic & Data Services division traded in line with expectations and will benefit significantly from the Compass and CTM acquisitions in H2 and beyond.
In line with our product road map, the Group continues to invest in our technology stack and is making excellent progress developing the next generation of planning products for the transport industry. The Group's pipeline of acquisition opportunities remains strong.
As announced previously, Chris Barnes, CEO Designate, joined Tracsis on 4 February 2019 and the transitioning process from John McArthur is well underway and proceeding to plan.
The Group's interim results will be announced on 10 April 2019.
Tracsis plc | Tel: 0845 125 9162
John McArthur, CEO
Chris Barnes, CEO-Designate
Max Cawthra, CFO
finnCap Ltd | Tel: 020 7220 0500
Christopher Raggett/Scott Mathieson, Corporate Finance
Andrew Burdis, Corporate Broking