Unaudited Interim results for the six months ended 31 January 2021
Tracsis, a leading provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, is pleased to announce its unaudited interim results for the six months ended 31 January 2022.
Revenue increased by 31% to £29.2m (H1 2021: £22.2m)
- Significant revenue growth in Data, Analytics, Consultancy and Events Division, including post-Covid recovery
- Rail Technology and Services Division revenue at a similar level to prior year; recent multi-year Rail Technology software contract wins will drive future revenue growth
Adjusted EBITDA* increased by 14% to £6.2m (H1 2021: £5.4m)
- Data, Analytics, Consultancy and Events Division increased by 35%
- Rail Technology and Services Division increased by 4%
- Profit before tax increased by 16% to £1.3m (H1 2021: £1.1m)
- Cash balances of £25.1m with no debt (31 July 2021: £25.4m, 31 January 2021: £20.8m)
- Restoring the progressive dividend policy; proposed interim dividend of 0.9p per share
- Won several multi-year rail technology software contracts including our first in the rail freight sector for TRACS Enterprise, as well as additional smart ticketing and delay repay contracts
- Events and Traffic Data businesses have responded quickly to capitalise on post-Covid increase in demand, made possible by actions taken to safeguard these businesses during the pandemic
- Large multi-year TRACS Enterprise contracts won in previous years now in deployment phase ahead of go-live dates in summer 2022
- Enhanced the Group’s Data Analytics/GIS capabilities with the acquisition of geoscience company Icon GEO, with the integration progressing well
- Further progress in Group operational improvements: continued investment in implementing a more integrated operating and shared services model, improving our processes and systems, and people development
Post period end Highlights:
- Acquisition of RailComm LLC (“RailComm”) a US based rail technology software and services provider, giving direct access to the large and growing North American market
Further contract wins in the Rail Technology and Services Division
- Two additional multi-year TRACS Enterprise contracts with passenger operators in the UK
- Secured a large multi-year Centrix software contract and an extension to our long-running Remote Condition Monitoring data logger framework contract with the UK’s rail infrastructure provider
- Encouraging start to Q3 trading with high activity levels across large parts of the Group
- Well positioned to deliver further growth in H2 and beyond
* md sEarnings before finance income & expense, tax, depreciation, amortisation, exceptional items, other operating income, share-based payment charges and share of result of equity accounted investees. See note 10 for reconciliation.
Chris Barnes, Chief Executive Officer, commented:
"I am pleased with the first half performance which was in line with our expectations. We have seen strong revenue and adjusted EBITDA growth, and have made some important progress in executing our strategic growth agenda and converting our sales pipeline. We have won several multi-year recurring revenue software contracts and have a growing pipeline of other opportunities, which together leave us well placed to deliver further growth.
The UK rail industry’s transition to a new Great British Railways structure is ongoing and the overall objective is to create a data-driven, customer-focused, safety-critical future for the industry. Our range of rail technology products and services is well placed to help the rail industry deliver its strategic goals and as a result we have been asked to actively participate in helping to shape future decision making.
The recent acquisition of RailComm is an important strategic development for Tracsis, providing a platform onto which we can start to internationally expand the Group and its rail product portfolio via direct access to the significant and growing North American rail technology market. We have received a very positive reaction across RailComm’s North American client base.
We continue to invest in implementing a more integrated operating model to help us to execute our growth strategy. I am particularly pleased to see the launch of the OneTracsis leadership development programme during the period, which is an important initiative as part of our commitment to investing in developing our people and growing the next generation of leaders in our business.
We are confident that there are strong growth prospects for all parts of our Group and therefore remain committed to implementing our overall strategic growth and investment plans. We will continue to pursue organic and acquisitive growth supported by a strong balance sheet."
Tracsis plc | Tel: 0845 125 9162
Chris Barnes, CEO / Andy Kelly, CFO
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