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 audited final results for the year ended 31 July 2022.
Financial Highlights:
Strong financial performance with high levels of organic and acquisitive growth
Revenue increased by 37% to £68.7m (2021: £50.2m)
Organic revenue growth of 24%
63% revenue growth in Data, Analytics, Consultancy and Events Division, including post-Covid recovery and contribution from acquisitions
Rail Technology and Services Division revenue increased by 13% including the benefit from multi-year software contract wins that went live during the year and the RailComm acquisition
Adjusted EBITDA* increased by 9% to £14.2m (2021: £13.0m)
Profit before tax of £2.6m (2021: £4.6m) after £3.1m of exceptional items including increase in fair value of contingent consideration and transaction costs associated with acquisition of businesses
Total cash balances** of £17.2m with no debt (31 July 2021: £25.4m) after £13.5m net investment in acquisitions, and contingent and deferred consideration
Proposed final dividend of 1.1p per share, with total dividend of 2.0p per share (2021: nil) consistent with the Group’s progressive dividend policy that was restored at the half-year
Operational Highlights:
Strong growth in rail technology software licence usage:
First full deployment of TRACS Enterprise went live in summer 2022. Work continues on delivering our orderbook of further deployments from previously announced contract wins
Roll-out of RailHub enterprise software contract won in the prior year progressing to plan and will more than double the user base to c.40,000 individuals by late 2022
20% growth in user base of Centrix, our cloud-base Remote Condition Monitoring data acquisition platform
Won several multi-year rail technology software contracts as previously announced, that will support further revenue growth
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. RailComm has performed well post acquisition
Strong post-Covid recovery of activities in Events and Traffic Data, made possible by actions taken to safeguard these businesses during the pandemic, and including some activities not expected to repeat in the forthcoming financial year
Enhanced the Group’s technology capabilities with the acquisition of geoscience company Icon GEO, now fully integrated
Formalised our sustainability strategy, with a target of being carbon neutral by 2030 for scope 1 and scope 2 emissions from Tracsis operations
Further progress in implementing a more integrated operating model to support future growth, with continued investment in management capability, people development, and common processes and systems
* Earnings before net finance expense, tax, depreciation, amortisation, exceptional items, other operating income, share-based payment charges and share of result of equity accounted investees. See note 6 for reconciliation.
** Cash and cash equivalents, and cash held in escrow
Chris Barnes, Chief Executive Officer, commented:
“I am pleased with the progress the Group has made this year in executing its growth strategy.
We have delivered a financial performance aligned to our long term strategic growth plan, with high levels of organic and acquisitive growth. Our Rail Technology and Services Division has won several multi-year software contracts, and in Data, Analytics, Consultancy and Events we have seen a strong post-Covid recovery in activity levels.
We have a growing pipeline of opportunities in both Divisions, and we have expanded our addressable markets including our first direct entry into the large and growing North America rail market with the acquisition of RailComm. The post-acquisition performance of this business has been particularly pleasing, with good revenue and profit performance, new orders secured for its core products, and an encouraging level of interest in products from elsewhere in the Group that are already well established in the UK. These opportunities 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. Digital transformation will play a significant role in the industry’s transition and our range of rail technology products and services is well placed to help the rail industry deliver operational performance improvements and efficiency savings.
We continue to invest in implementing a more integrated operating model to help us to execute our growth strategy. I was particularly pleased to see the launch of the OneTracsis leadership development programme during the year, 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 also making good progress in implementing a single groupwide IT operating model, under the direction of an experienced technology leader who has been recruited to further enhance senior management bandwidth.
Tracsis is fully committed to delivering sustainable growth that benefits the communities in which we, and our customers, operate. The Group’s products and services are well aligned with this vision, and support our customers in delivering positive environmental and social outcomes. This year we have formalised our sustainability strategy and set ourselves the ambition of being carbon neutral by 2030 for scope 1 and scope 2 emissions from Tracsis operations.
Q1 trading is in line with the Board’s expectations. 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.”
Presentation and Overview videos
Tracsis is hosting an online presentation open to all investors on Friday 11 November 2022 at 1.00pm UK time. Anyone wishing to connect should register here: https://bit.ly/TRCS_FY22_results
A video overview of the results featuring CEO Chris Barnes and CFO Andy Kelly is available to view here: https://bit.ly/TRCS_FY22_overview
Tracsis will be presenting at the MelloLondon investor conference on Wednesday 16 November 2022. Further information is available here: MelloLondon ticket page – Mello Events
Demonstration videos of the Group’s TRACS Enterprise, Remote Condition Monitoring, Smart Ticketing, and Safety and Risk Management rail technology products are available to view here: Rail Technology Product Demonstration for Investors | Tracsis
Enquiries:
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 tracsis@almapr.co.uk