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(Sharecast News) - Rail, traffic data and transport technology specialist Tracsis reported strong trading in a first-half update on Thursday, in line with expectations.
The AIM-traded company said revenue for the six months ended 31 January was expected to have increased to over £39m, up from £29.2m year-on-year, with strong underlying growth in both of its divisions.
Moreover, EBITDA was expected to have increased by more than 20%, from £6.2m in the first half of the 2022 financial year.
Tracsis said it continued to invest in integrating its activities, technologies, and operating model to accelerate future growth.
In the first half, it took a series of actions to restructure the group and accelerate technology investment.
The board said both of those would continue throughout the rest of the financial year, as it responded to a growing pipeline of opportunities.
Cash balances remained strong at £17m, down from £25.1m a year earlier and £17.2m at the end of the 2022 financial year.
"The rail technology and services division has delivered further growth in rail technology software licence usage and annual recurring revenue," the board said in its statement.
"In the UK, the group has won new contracts for the deployment of its pay-as-you-go smart ticketing technology across smartcard, debit or credit card, and mobile app platforms; delivered the second full deployment of TRACS Enterprise; completed the roll-out of a large RailHub enterprise software contract; and saw strong demand for its remote condition monitoring technology.
"In North America, RailComm is performing well and has successfully delivered several projects in the period including a large software licence deployment with a transit customer."
Tracsis said it was continuing to see good growth opportunities in the "large and growing" market.
"The data, analytics, consultancy and events division saw high activity levels across all business areas supported by several large contract wins, many of which are multi-year in nature.
"Importantly both the events and traffic data businesses have now completed a full post-Covid lockdown recovery.
"The board's expectations for the year ending 31 July remain unchanged."
At 1457 GMT, shares in Tracsis were down 0.42% at 946p.
Reporting by Josh White for Sharecast.com.