Last checked at 23 Aug 2023 07:00
23 August 2023
Tracsis plc
("Tracsis" or "the Group")
Trading Update and Notice of Results
Tracsis, a leading transport technology provider, is pleased to provide the following trading update for the year ended 31 July 2023.
Trading for the year has been in line with the Board's expectations. Group revenue is expected to have increased by c.19% to over £81.5m (2022: £68.7m), with strong growth in both Divisions. The Group expects adjusted EBITDA to be c.£16m (2022: £14.2m).
Cash balances at the end of July were c.£15.3m (2022: £17.2m[1]), after c.£9.5m of cash outflows in the year relating to contingent and deferred consideration that was consistent with expectations and aligned to strong performance from historic acquisitions. All material earn-outs have now been paid. The Group's robust cash position and healthy cash generation leave it well positioned to continue to invest in its technology base and further acquisitions.
The Rail Technology and Services Division has delivered strong growth in the UK based on the delivery of a series of large multi-year SaaS contracts for Train Operators and Network Rail. This has driven a further increase in rail technology software licence usage and annual recurring revenue, despite ongoing industrial disputes and the delayed transition to the new Great British Railways structure.
The Rail Technology and Services Division has also delivered strong growth in North America driven by the US Government's infrastructure spending bill which is accelerating new technology investment. We are building good sales momentum with Transit and Freight Operators and rail served ports and industrials as we expand our product portfolio.
The Data, Analytics, Consultancy and Events Division has delivered revenue growth ahead of expectations. This includes the benefit from new contract wins in Data Analytics/GIS and ongoing demand for specialist consultancy services, in addition to a very strong post Covid lockdown recovery in the Events and Traffic Data businesses.
In order to continue providing a solid platform for ongoing scalable growth, the Group has continued to integrate its activities, technologies and operating model. Alongside this, technology investment has increased to accelerate future growth which will continue through the forthcoming financial year. As a Group we expect the weighting of growth to be in the second half of the next financial year as we continue to grow our pipeline and deliver a large orderbook of work.
Notice of Results and Investor Presentation
Results for the year ended 31 July 2023 will be announced on 15 November 2023.
The Board is committed to communicating with all investors equally and directly, to ensure that its strategy, business model and performance are clearly understood. Accordingly, as part of the Group's full year results roadshow, a live online investor presentation will be given by management on 17 November at 1.00pm UK time.
Anyone wishing to participate should register here: https://bit.ly/TRCS_FY_webinar
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No.596/2014
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/Rebecca Sanders-Hewett/Joe Pederzolli | tracsis@almapr.co.uk |
Notes to editors:
· Tracsis plc is a technology company and a leading provider of software and hardware products, data capture and data analytics/GIS services for the rail, traffic data and wider transport industries.
· Tracsis' products and services are widely used to increase efficiency, reduce cost and risk, improve operational and asset performance, improve safety management and decision making capabilities and improve the overall end-user experience for clients and customers.
· The Group is split into two principal operating areas built around detailed industry knowledge and expertise:
- Rail Technology & Services: A software, technology and product led business. It develops and supplies software that solves complex resource, asset optimisation and control problems for Train Operators, and Smart Ticketing, Delay Repay and other retail software to improve the customer experience for rail users. It also develops remote condition monitoring hardware, data acquisition software, and safety and risk management software for rail infrastructure providers.
- Data, Analytics, Consultancy & Events: A largely services led business that focuses on data capture, data analytics, GIS, earth observation, data insights, consultancy and event traffic management within a range of transport and pedestrian rich environments. The business provides technology and bespoke products and data that underpin large scale intelligent transport systems, smart city planning and positive environmental decision making.
· Tracsis has a blue-chip client base which includes all major UK transport owning groups, Network Rail, Passenger and Freight Train Operating Companies, the Department for Transport, TfL, multiple local authorities, major outdoor music and sporting event organisers, and a wide variety of large engineering and infrastructure companies. In North America our clients include Class 1 rail freight companies, transit operators, shortline railroads and several large rail served ports and industrials.
· The business drives growth both organically and through acquisition and has made seventeen acquisitions since 2008.
For more information on Tracsis please visit http://www.tracsis.com
[1] The 2022 cash balance included $2.7m (£2.2m) held in escrow following the RailComm acquisition in March 2022, which was paid during the year ended 31 July 2023 based on RailComm having achieved certain financial targets in the first full year post acquisition.