Unaudited Final Results

26 November 20

Tracsis plc

('Tracsis', 'the Company' or 'the Group')

Unaudited final results for the year ended 31 July 2020

Tracsis, a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, is pleased to announce its unaudited final results for the year ended 31 July 2020. The Group will make a further announcement when the audited Annual Report for the year ended 31 July 2020 has been published, which is expected to be sent to shareholders in early December.

Financial Highlights:

  • Revenue of £48.0m (2019: £49.2m)

  • Adjusted EBITDA* of £10.5m (£9.6m excluding IFRS 16) (2019: £10.5m)

  • Operating profit before exceptional items of £4.3m (2019: £6.7m)

  • Statutory Profit before Tax of £4.1m (2019: £6.6m)

  • Cash balances of £17.9m (2019: £24.1m) with no Covid-19 deferrals due to be paid. Cash conversion rates remain high

  • Fully diluted adjusted Earnings Per Share of 23.66p (2019: 27.42p)

Strategic and Operational Highlights:

  • Strong trading from our Rail Technology & Services Division, outperforming budget expectations and generally unaffected by the pandemic

    • 17% revenue growth, and 33% EBITDA growth

    • Continued high levels of recurring revenue across all of our software products

    • Strong trading in our rail infrastructure businesses – MPEC (Remote Condition Monitoring Hardware and Software) and Ontrac (Safety and Risk Management Software)

    • Further large multi-year contract secured with a major Train Operator for our TRACS Enterprise product

  • Covid-19 impacted Traffic & Data Services Division by an estimated £10m of revenue versus budgeted expectations, but action taken to reduce cost base and to mitigate the impact. Some loss of revenue offset at Group level by outperformance in Rail Technology & Services Division

  • Completion of the acquisition of iBlocks Limited which offers exciting opportunities in Smart Ticketing

Post year end Highlights:

  • Q1 trading has been in line with Board’s expectations

  • Two major rail contracts in latter stages of negotiation

  • Renewal and extension of several large multi-year agreements for Traffic Data and Event contracts

  • All software licence renewals secured

  • Implementation of Groupwide shared services model to accelerate integration

Chris Barnes, Chief Executive Officer, commented:

"After a strong H1, I am pleased that the business was able to robustly navigate itself through the H2 challenges linked to Covid-19. The team did a great job in proactively responding to these challenges whilst protecting the health and wellbeing of all our employees.

We continue to see strong demand and growth across our Rail Technology & Services division and in our data & analytics capabilities. These continue to underpin our growth strategy and improving EBITDA margins. Whilst we believe we have successfully navigated the first phase of the Covid-19 crisis, and are well positioned for the future, we continue to closely monitor short term trading conditions in our Events and Traffic Data business units within the Traffic & Data Services Division.

We are confident that the medium to long term growth prospects for all parts of the Group are unchanged and we therefore remain committed to our overall strategic growth and investment plans. We will continue to proactively manage costs for as long as Covid-19 continues to impact the Group whilst maintaining the skills and capacity required to quickly respond post the end of the pandemic."

* Calculation unchanged from previous years and in line with broker forecasts and research coverage on Tracsis. Full definition and reconciliation in Note 6.


Tracsis plc | Tel: 0845 125 9162
Chris Barnes, CEO
Max Cawthra, CFO

finnCap Ltd | Tel: 020 7220 0500
Christopher Raggett/Charlie Beeson, Corporate Finance
Andrew Burdis, Corporate Broking

Alma PR | Tel: 020 3405 0205 Rebecca Sanders-Hewett / David Ison / Helena Bogle / Joe Pederzolli tracsis@almapr.co.uk