Last checked at 9 Jul 2020 07:00
9 July 2020
Tracsis plc
("Tracsis" or the "Group")
Trading update
Tracsis is a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, and is pleased to provide an update on current trading, and the impact of Covid-19 on the Group.
Overall trading since the commencement of the Covid-19 crisis has been better than originally expected but naturally has had an adverse impact on the business. The Group estimates that the impact on current year revenue will be in the region of £10m, with our Traffic Data and Events business units most affected by project cancellations and postponements. The Group therefore expects to report full year revenues of circa £46m.
Despite the Covid-19 challenges, the Traffic & Data Services division has continued to secure new work and the impact of the reduced revenue on profitability has been mitigated to an extent by a range of actions taken to reduce the cost base across the business.
As noted previously, our Rail Technology & Services businesses have continued to trade very well as the performance of these segments is underpinned by high levels of recurring Software revenue. We continue to deliver a number of large multi-year projects whilst winning new work and have a good pipeline of future opportunities.
Current cash balances remain strong at circa £16m, after making all tax and acquisition related payments due.
A further, more detailed update will be provided in August 2020, once the July year end draft management accounts have been completed.
Enquiries:
Tracsis plc Tel: 0845 125 9162
Chris Barnes, CEO
Max Cawthra, CFO
finnCap Ltd Tel: 020 7220 0500
Christopher Raggett/Charlie Beeson, Corporate Finance
Andrew Burdis, Corporate Broking
Notes to editors:
· Tracsis plc is a technology company and a leading provider of software and hardware products, data capture and data analytic services for the rail, traffic data and wider transport industries.
· Tracsis' products and services are widely used to increase efficiency, reduce cost and risk and improve operational and asset performance, safety management and decision making capabilities 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 led business supported by consultancy. Develops remote condition monitoring hardware and safety, productivity improvement, risk management and data acquisition software for rail infrastructure providers and software that solves complex resource, asset optimisation and control problems for Train Operators.
- Traffic & Data Services: A largely services led business that focuses on data capture, data analytics, data insights and event traffic management within transport and pedestrian rich environments. The business provides technology 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, the Department of 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