Last checked at 23 Feb 2021 07:00
23 February 2021
Tracsis plc
("Tracsis" or the "Group")
Trading update and notice of results
Tracsis, a leading provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, is pleased to provide the following trading update for the six months ended 31 January 2021.
Trading for the first half of the year has been in line with the Board's expectations with high activity levels across large parts of the Group.
Group revenue is expected to be c.£22m (H1 2020: £26.4m), with underlying growth in the Rail Technology & Services Division and lower sales in our Events and Traffic Data business units as expected due to ongoing Covid-19 related restrictions on their end markets. The overall impact of Covid-19 on H1 revenue is expected to be c.£6.0m. We continue to expect activity levels in the Events and Traffic Data business units to progressively return to normal as lockdown restrictions are lifted.
While the Group's revenue is below that of the corresponding period, EBITDA is expected to be only slightly lower than H1 last year (H1 2020: £5.6m) due to a larger proportion of revenue in H1 2021 coming from the higher margin Rail Technology & Services Division, and the positive impact of cost reduction actions taken in response to the pandemic. Cash balances remain strong at c.£21m (H1 2020: £26.0m, 31 July 2020: £17.9m). As in the previous year, the Group has not taken advantage of any tax deferrals and is fully up to date with all of its VAT payments etc.
Our Rail Technology & Services Division traded well with several new business wins and continued to benefit from high levels of recurring software revenue and revenue from multi-year contract wins in previous years. We have two large rail opportunities in the final stages of contract award. All our rail businesses have been involved in major multi-year tenders, some of these in international markets, which gives us confidence in our ability to continue to drive organic growth. Many of these opportunities involve recurring software licence revenues. The impact of Covid-19 on the Division was largely limited to delay repay revenues, with fewer people travelling due to government restrictions.
Our Data, Analytics, Consultancy & Events division has performed in line with expectations, despite ongoing Covid-19 related challenges. This includes a strong contribution from Compass Informatics as it continues to grow its GIS/data analytics client base.
The Board's expectations for the year ending 31 July 2021 remain unchanged.
The Group continues to invest in our technology base and to pursue acquisition opportunities.
The Group's interim results will be announced on 8 April 2021.
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 Interim results roadshow, an online investor presentation will be given by management, hosted by piworld, on Tuesday, 13th April, at 1.30pm.
Anyone wishing to participate should register here: http://bit.ly/TRCS_FY21_interim_results_retail
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:
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Tracsis plc | Tel: 0845 125 9162 |
Chris Barnes, CEO |
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Andy Kelly, CFO |
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finnCap Ltd | Tel: 020 7220 0500 |
Christopher Raggett/Charlie Beeson, Corporate Finance |
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Andrew Burdis, Corporate Broking |
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Alma PR | Tel: 020 3405 0205 |
David Ison/Helena Bogle/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 analytic/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 customer experience for clients and customers.
· The Group is split into two principle operating areas built around detailed industry knowledge and expertise:
- Rail Technology & Services: Software and technology/product led business. Develops remote condition monitoring hardware, data acquisition software and safety and risk management software for rail infrastructure providers. 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.
- Data, Analytics, Consultancy & Events: A largely services led business that focuses on data capture, data analytics, GIS, data insights, consultancy and event traffic management within a range of transport and pedestrian rich environments. The business provides technology/bespoke products and data that underpins large scale intelligent transport system and smart city planning and decision making.
· Tracsis has a blue-chip client base which includes all major UK transport owning Groups. The business also works extensively with Network Rail, Train Operating Groups and 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.
· The business drives growth both organically and through acquisition and has made fourteen acquisitions since 2008.
· For more information on Tracsis please visit http://www.tracsis.com