Tracsis's revenues rise, boosted by acquisitions

Tracsis increased revenue for the full-year after two acquisitions and investments, announcing its 'core' operations had traded in line with expectations.

In a trading update for the year ending 31 July, the developer and aggregator of technology for the transportation sector said revenue increased by 26% to in excess of £32m, compared to the previous financial year, with good contributions from all of its businesses and thanks to its recent acquisitions.

Leeds-based Tracsis purchased traffic planner and management services provider SEP in September 2015 and software development and IT solutions company Ontrac in December 2015.

Tracsis said both acquisitions have performed well as Ontrac secured several major orders for its software products and SEP experienced a record year of trading bolstered by a busy summer of events.

The AIM-listed company also invested in Citi Logic in February and in Nutshell Software. It invested about £5500,000 in Nutshell through a combination of equity and convertible debt to acquire about 37.8%.

It also sold its Australian non-core trading subsidiary Tracsis Traffic Data in December 2015.

The second half of the year was considerably stronger than the first half due to the impact of SEP’s seasonality and the timings of the acquisitions. Revenues in the second half of the financial year of £18m exceeded revenues from the first half of £14.3m.

Tracsis said that adjusted earnings before tax, depreciation and amortisation (EBITDA) and adjusted profits for the year were expected to be in line with market expectations and ahead of the previous year.

Cash balances at period-end stood at £11m, a decrease of about 17% from last year, due to the cash used for investments and the acquisitions. The company said it was debt free and highly cash generative.

The company added that it had not experienced any material change in business since the Brexit vote in June, but it was too early to assess the long-term implications of the referendum result.

Shares in Tracsis in were up 4.42% to 513.75p at 1005 BST.