("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 six months ended 31 January 2020.
Trading for the first half of the year has been in line with expectations. Group revenues, as expected, are well ahead of the previous year at over £26m (2019: £18.8m). EBITDA and Adjusted Profit are also expected to be ahead of the previous year (2019: EBITDA £4.2m, 2019: Adjusted Profit £3.9m). Cash balances remained strong at approximately £26m at 31 January 2020 (31 July 2019: £24.1m, 31 January 2019: £18.7m), after the expected unwinding of the positive year end working capital movements from the previous year end.
Our Rail Technology & Services division has traded well, benefiting from high levels of recurring software revenue, and also income from multi-year contract wins from previous years. All our rail businesses have been involved in major tenders, which if successfully secured, will pave the way for further organic growth. Bellvedi which was acquired during 2019, has also performed well, and continues to form a key part of our industry leading TRACS Enterprise solution.
Our Traffic & Data Services division is highly second-half weighted. With this in mind, it has performed very pleasingly and ahead of expectations, with a very strong contribution from the acquired businesses CTM and Compass Informatics, where integration is progressing well.
As highlighted previously, the Group continues to invest heavily in our technology base, and continues to make good progress developing the next generation of products for the transport industry.
The Group continues to review acquisition opportunities particularly in the Rail Technology & Services division as we seek to judiciously use cash balances to fuel growth.
Interim results will be announced on 2 April 2020.
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