("Tracsis" or the "Group")
Tracsis, a leading provider of software, hardware, data analytics/GIS 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 2021.
Group revenues are expected to be close to £50m (2020: £48.0m) reflecting a strong end of year recovery in activity levels in our Traffic Data and Events business units, and further organic growth in the Rail Technology and Services Division and in Data Analytics/GIS. The Group expects to report an adjusted EBITDA margin in excess of 25% (2020: 21.8%) which includes the positive impact of cost reduction actions taken in response to the pandemic.
Cash balances at the end of July were c£25.4m (2020: £17.9m) with no Covid deferrals due to be paid. This once again reflects strong cash generation within the Group and provides a strong platform for continued investment in future organic and acquisitive growth opportunities.
Our Rail Technology and Services Division has continued to trade well. The Division benefits from high levels of recurring software revenue and has a large pipeline of multi-year opportunities. Performance for the year to 31 July 2021 includes the initial benefit from the large RailHub Enterprise Software contract win announced in July 2021, as well as continued strong demand for our Remote Condition Monitoring products.
The Data, Analytics, Consultancy and Events Division has performed well despite the impact of Covid-19 on the end markets of our Traffic Data and Events businesses. Our primary objective throughout the Covid pandemic has been to protect jobs and employee wellbeing, as a result of which we have been well positioned to respond quickly to increased demand in both markets as Covid restrictions have been lifted. We anticipate further recovery in activity levels through Q1 of FY 21/22, supported by the recently announced Government-backed insurance scheme for the live events sector.
Results for the year ended 31 July 2021 will be announced to the market in November 2021.
Tracsis plc | Tel: 0845 125 9162
Chris Barnes, CEO
Andy Kelly, CFO
finnCap Ltd | Tel: 020 7220 0500
Christopher Raggett/Charlie Beeson, Corporate Finance
Andrew Burdis, Corporate Broking
Alma PR | Tel: 020 3405 0205
David Ison / Hilary Buchanan / Joe Pederzolli