Tracsis trades in line with expectations in first half

Traffic data and transportation software and services provider Tracsis updated the market on its trading for the six months ended 31 January on Monday, reporting that group trading for the half-year was in line with management expectations.

The AIM-traded firm said group revenues were expected to be ahead of the previous year at around £19m, compared to £18.1m, while EBITDA and adjusted profit were also expected to be higher.

It said it was pleased to have completed the acquisitions of both Compass Informatics and Cash & Traffic Management in January, with the full six-month impact coming in the second half of the financial year.

The directors said they believed both acquisitions were “highly complementary” to its traffic and data services division, with “good potential” for further growth in the coming years.

As at 31 January, group cash balances remained “strong” at £18.7m, up from £18.5m year-on-year, which the board said reflected continued “excellent” cash generation.

“This is after the cash outflow in respect of acquisitions made and the final contingent consideration in respect of the Ontrac acquisition from 2016,” the Tracsis board said in its statement.

“General trading across the group remained busy throughout the first half.

“In January, the group announced a significant five-year framework agreement with a major train owning group for its TRACS Enterprise product.”

Tracsis said that roll out was well underway, with revenues from the contract expected to be realised in the second half of the financial year and beyond.

It said its RCM offering experienced “positive” trading conditions, with Ontrac securing a multi-year software deal at Crossrail and TCS awarded a new multi-year contract for its delay repay offering.

“Our traffic and data services division traded in line with expectations and will benefit significantly from the Compass and CTM acquisitions in the second half and beyond.

“In line with our product road map, the group continues to invest in our technology stack and is making excellent progress developing the next generation of planning products for the transport industry.

“The group's pipeline of acquisition opportunities remains strong.”

As it had previously announced, Chris Barnes - chief executive officer designate - joined Tracsis on 4 February, with the board saying the transitioning process from John McArthur was “well underway”, and proceeding to plan.

Tracsis said its interim results would be announced on 10 April.