Trading and Covid-19 Update
20 March 20
("Tracsis" or the "Company")
Trading and Covid-19 Update
Tracsis is a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, and in response to the rapidly evolving Covid-19 situation has been evaluating the potential impact on the Group.
We expect the Rail Technology & Services Division to have resilience as it derives most of its income from highly recurring product sales and we will continue to remain focused on the delivery of a number of large multi-year client contracts, with staff being able to work on development whilst at home.
We do however expect parts of the Traffic & Data Services Division to be impacted by Covid-19. In particular, our events businesses SEP and CTM both derive a significant amount of revenue from major UK based outdoor events, and in recent days we have been notified by some major clients that events scheduled for this summer will either be cancelled or postponed to the Autumn. We expect further events to be cancelled or postponed in due course. We are attempting to mitigate the impact as much as possible through reduced casual labour costs and other actions that the business can take to offset this. We also expect disruption to our Traffic Data collection and Passenger Analytics activities that are scheduled to take place over the coming weeks, given road traffic and rail passenger activity will be heavily reduced and hence not representative.
Given that the situation is changing rapidly, at this point in time it is not possible to accurately quantify the impact on H2 trading and therefore full year expectations. Further updates will be provided in due course.
The Group is a resilient business with substantial cash balances maintained and strong cash flow. Interim results to 31 January 2020 will be issued on 2 April 2020.
Our key priority during these unprecedented times is the health and wellbeing of our employees, our clients and their families.
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
Notes to editors:
Tracsis plc is a technology company and a leading provider of software and hardware products, data capture and data analytic services for the rail, traffic data and wider transport industries.
Tracsis' products and services are widely used to increase efficiency, reduce cost and risk and improve operational and asset performance, safety management and decision making capabilities for clients and customers.
The Group is split into two principle operating areas built around detailed industry knowledge and expertise:
Rail Technology & Services: Software and technology led business supported by consultancy. Develops remote condition monitoring hardware and safety, productivity improvement, risk management and data acquisition software for rail infrastructure providers and software that solves complex resource, asset optimisation and control problems for Train Operators.
Traffic & Data Services: A largely services led business that focuses on data capture, data analytics, data insights and event traffic management within transport and pedestrian rich environments. The business provides technology and data that underpins large scale intelligent transport system and smart city planning and decision making.
Tracsis has a blue-chip client base which includes all major UK transport owning Groups. The business also works extensively with Network Rail, the Department of Transport, TfL, multiple local authorities, major outdoor music and sporting event organisers, and a wide variety of large engineering and infrastructure companies.
The business drives growth both organically and through acquisition and has made fourteen acquisitions since 2008.