10 April 19
('Tracsis', 'the Company' or 'the Group')
Interim results for the six months ended 31 January 2019
Tracsis plc (AIM: TRCS), a leading provider of software and services for the rail, traffic data and wider transportation industries, is pleased to announce its interim results for the six months ended 31 January 2019.
- The Group continues to trade well, with a further period of profitable growth
- Key financial metrics now reported under IFRS 15 and compared to last year are summarised as follows:
|2019 under||2019 under||2018 actual||Variance under||Variance under|
|IFRS 15||IAS 18||IAS 18||IAS 18||IFRS 15|
|Profit before Tax||£2.1m||£2.3m||£2.4m||(£0.1m)||(£0.3m)|
- Cash balances at 31 January 2019 of £18.7m (31 July 2018: £22.3m, 31 January 2018: £18.5m)
- The business remains debt free with strong cash flow and cash conversion
- Proposed interim dividend increased by 14% to 0.8p per share (2018: 0.7p)
- Five-year Framework Agreement secured with a major Train Owning Group for our TRACS Enterprise product - Tracsis' largest software contract to date
- Acquisitions of Compass Informatics Limited ("Compass") and Cash & Traffic Management Limited ("CTM") completed in the period (January 2019) - full impact will be felt in H2
- Significant investment made in rail technology software development
- Remote Condition Monitoring business has traded well
- Ontrac and Travel Compensation Services secured new multi-year software deals with UK rail clients
- Traffic & Data Services division margin improvement strategy continues, and the division traded in line with expectations.
- Chris Barnes joined the Group on 4 February as CEO Designate and will succeed John McArthur on 1 May as Group CEO
John McArthur, Chief Executive Officer, commented:
"This was another busy period for the Group and we have made good progress in delivering to our strategy of organic and acquisitive growth. We were pleased to have completed two acquisitions in the period which will benefit the second half of the financial year, and also secured a significant software contract which is strategically important for Tracsis and the wider rail industry. The Directors are pleased with the results for the period and the business is well placed to deliver full year results in line with market expectations, with the second half of the year expected to be stronger given the seasonality in the business and the contribution from the newly acquired businesses."
* Calculation unchanged from previous years and in line with broker forecasts and research coverage on Tracsis. Full definition and reconciliation in Note 9.
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