20 August 19
("Tracsis" or the "Group")
Tracsis, a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, is pleased to provide the following trading update for the year ended 31 July 2019.
Group trading for the year has again been strong, with the second half performance being particularly pleasing. Revenue, EBITDA and Adjusted EBIT for the year are expected to be in line with market expectations1 and ahead of the previous year2 with a good mix of organic and acquisitive growth across the Group. The Board is pleased with the growth and performance in the year.
At 31 July 2019, cash balances remained strong at c. £24m (2018: £22.3m), which again demonstrates excellent cash generation in the year, and is after paying c. £9m (net of cash acquired) in respect of the three acquisitions made in the year and the payment of contingent consideration. The Group remains debt free.
Highlights within our Rail Technology & Services Division include the acquisition of Bellvedi Limited, a specialist in timetabling optimisation software, and a five-year Framework Agreement secured with a major Train Owning Group for our TRACS Enterprise product which is Tracsis' largest software contract to date. In addition, the Group experienced very strong organic growth in our rail infrastructure businesses which include MPEC (Remote Condition Monitoring hardware and software) and Ontrac (safety and productivity improvement and risk management software). Growth in the infrastructure space has been driven by high demand from a key UK customer at the end of Control Period 5. We have also continued to invest heavily in our technology base in the period as part of our growth strategy.
Our Traffic & Data Services Division also performed well in the year supported by the acquisitions of Compass Informatics Limited and Cash & Traffic Management Limited, both of which have traded well and continue to deliver high profile projects and events, driven by an excellent and diverse client list. Integration of both businesses into the wider division is well underway, and synergy benefits are expected to be progressively realised. The summer event season has been busy as usual, adding to a very strong performance in the second half of the year for this division. Various margin improvement initiatives adopted across the division in recent times have led to an improved level of profitability for this part of the Group this year alongside good levels of organic growth.
Chris Barnes joined the Group during the year, succeeding John McArthur as Chief Executive Officer on 1 May, and the transition is now complete. John continues to work with Tracsis in a part-time advisory capacity primarily supporting our M&A activities. The pipeline of prospects remains as strong as ever.
Full Year results will be announced to the market in October/November of 2019.
1 2019 market expectations: Revenue £46.7m, EBITDA £10.4m, Adjusted EBIT £9.6m.
2 2018 actuals: Revenue £39.8m, EBITDA £9.4m, Adjusted EBIT £8.7m.
Tracsis plc | Tel: 0845 125 9162
Chris Barnes, CEO
Max Cawthra, CFO
finnCap Ltd | Tel: 020 7220 0500
Christopher Raggett/Scott Mathieson, Corporate Finance
Andrew Burdis, Corporate Broking