Last checked at 22 Dec 2015 07:12
Tracsis plc
("Tracsis" or the "Group")
Disposal of non-core business
Tracsis plc, a leading provider of software and technology led products and services for the traffic & transportation industry, announces that it has disposed of Tracsis Traffic Data Pty Limited ("TTD"), its data capture operation in Australia, to Martin Prowse, the Managing Director of that Company as part of a management buy-out (the "Disposal").
The Disposal aligns with the Group's strategy to maintain strength in its core markets and operate in high value, niche markets. The Board is focused on continuing to drive its growth strategy in the UK and overseas but no longer believe TTD's data capture operations in Australia is required to achieve this goal. The Directors believe that disposing TTD, which has limited trading visibility and does not have critical mass, mitigates the Group's execution risk which is inherent in operations of this kind.
In the year ended 31 July 2015, TTD generated revenue of £2.2m, EBITDA of £0.3m, Profit Before Tax of £0.25m and had tangible net assets of circa £0.5m. The Disposal proceeds include an initial payment of AUS $285k, and deferred consideration of AUS $799k payable over 3 years to give total consideration of AUS $1,084k. As part of the disposal agreement, the Group has security arrangements over the shares and assets of TTD and connected parties, which will remain in place until the consideration is paid in full. The Directors believe the Disposal will not have a material impact to Group profitability in the current financial year and will lead to an overall improvement of net margin.
This transaction is deemed to be a Related Party Transaction as defined by the AIM rules given that Martin Prowse was employed as a Director of TTD. The Directors, having consulted with the Group's nominated advisor, are satisfied that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
For more information please contact:
John McArthur/Max Cawthra, Tracsis plc | Tel: 0845 125 9162 |
Dominic Emery/Matt Lewis, Investec Bank plc | Tel: 020 7597 4000 |
Rebecca Sanders Hewett, Redleaf PR | Tel: 0207 382 4730 Tracsis@redleafpr.com |
Notes to editors:
§ The Group specialises in solving a variety of data capture, reporting and resource optimisation problems along with the provision of a range of associated professional services.
§ Tracsis' products and services are used to increase efficiency, reduce cost and improve the operational performance and decision making capabilities for clients and customers.
§ The Company offers the following services:
- Software and technology led consulting: Industry strength resource optimisation software that covers a variety of asset classes working alongside consulting and related professional services across the operational and strategic planning horizon.
- Remote Condition Monitoring: Technology and reporting for critical infrastructure assets in real time, to identify problems and aid with preventative maintenance.
- Traffic & Data Services: Collation, analytical services, and event management within traffic and pedestrian rich environments.
§ Tracsis has a blue chip client base which includes the majority of UK transport operators such as Arriva, First, Stagecoach, Go-Ahead, National Express and Virgin. The business also works extensively with Network Rail, the Department of Transport, multiple local authorities, and a variety of large engineering/infrastructure companies.
§ The business drives growth both organically and through acquisition and has made eight acquisitions since 2008.
§ Tracsis listed on AIM in 2007 under ticker TRCS.
§ For more information visit http://www.tracsis.com