£46.7m revenue forecast for listed transport software provider
Tracsis, a Leeds-based provider of software, hardware and services for the transport industries, has forecast revenue of £46.7m for the year.
The business released its trading update for the year ending on 31 July 2019. Its update notes: “Group trading for the year has again been strong, with the second half performance being particularly pleasing.
“Revenue, EBITDA and Adjusted EBIT for the year are expected to be in line with market expectations, and ahead of the previous year (2018 revenue: £39.8m) with a good mix of organic and acquisitive growth across the Group. The Board is pleased with the growth and performance in the year.
“At 31 July 2019, cash balances remained strong at c. £24m (2018: £22.3m), which demonstrates excellent cash generation in the year, and is after paying c. £9m (net of cash acquired) in respect of three acquisitions made in the year and the payment of contingent consideration. The Group remains debt free.”
The business highlighted the acquisition of Bellvedi Limited, a specialist in timetabling optimisation software, and a five-year Framework Agreement secured with a major Train Owning Group for its TRACS Enterprise product which is Tracsis’ largest software contract to date.
In addition, the Group said it experienced very strong growth in its rail infrastructure businesses, which include MPEC (Remote Condition Monitoring hardware and software) and Ontrac (safety and productivity improvement and risk management software).
Growth in the infrastructure space was driven by high demand from a key UK customer. And the company has also continued to invest heavily in its technology base in the period as part of its growth strategy.
Its update statement adds: “Our Traffic & Data Services Division also performed well in the year supported by the acquisitions of Compass Informatics Limited and Cash & Traffic Management Limited, both of which have traded well, driven by an excellent and diverse client list.
“The summer event season has been busy as usual, adding to a very strong performance in the second half of the year for this division.
“Various margin improvement initiatives adopted across the division in recent times have led to an improved level of profitability for this part of the Group this year alongside good levels of organic growth.”
