Trading Update and Notice of Results
24 August 22
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 2022.
Group revenue is expected to have increased to c.£69.0m (2021: £50.2m), reflecting strong organic and acquisitive growth. Both divisions have delivered high levels of revenue growth, which includes a strong post-Covid lockdown recovery of activities in the Events and Traffic Data business units, the contribution from the RailComm and Icon GEO businesses that were acquired in the year, and the initial benefit from the previously announced multi-year Rail Technology software contracts that were won during the year. The Group expects adjusted EBITDA to be ahead of market expectations.
The Group's cash balance remains strong at c.£17.2m (2021: £25.4m), which enables the Group to continue to invest in its technology base and to support future organic and acquisitive growth opportunities.¹
The Rail Technology and Services Division has continued to trade well. The Division benefits from high levels of recurring software revenue, a fast-growing user base, and has a large pipeline of multi-year opportunities. Performance for the year to 31 July 2022 includes the benefit from multi-year rail technology software contracts that went live during the year. Following the acquisition of RailComm, the Group has won several new rail contracts in North America that will support ongoing revenue and profit growth in this market.
The Data, Analytics, Consultancy and Events Division has delivered revenue growth ahead of expectations, driven by a very strong post-Covid lockdown recovery of activities in the Events and Traffic Data business units in the final quarter of the financial year. There was also strong revenue growth in both the Transport Insights and Data Analytics/GIS businesses, including the benefit from the acquisition of Icon GEO in November 2021.
Results for the year ended 31 July 2022 will be announced on 9 November 2022.
The Board is committed to communicating with all investors equally and directly, to ensure that its strategy, business model and performance are clearly understood. Accordingly, as part of the Group's full year results roadshow, a live online investor presentation will be given by management, hosted by piworld, on 11 November at 1.00pm UK time.
Anyone wishing to participate should register here: https://bit.ly/TRCS_FY22_results
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/Sunila de Silva, Corporate Broking
Alma PR | Tel: 020 3405 0205
David Ison/Hilary Buchanan/Joe Pederzolli
¹ This cash balance includes $2.7m (£2.2m) held in escrow following the RailComm acquisition in March 2022, which will be payable during the year ending 31 July 2023 subject to RailComm achieving certain financial targets in the first full year post acquisition.