Tracsis upbeat as revenues rise
Transport software company Tracsis grew revenues from £32.6m to £34m in 12 months to July as the group said it was “pleased with the momentum experienced during the year”.
In a trading update, the group, which provides software and services for the traffic data and transportation industry, said there was good trading throughout all parts of the business.
EBITDA and adjusted profit are expected to be in line with market expectations and also ahead of the previous year (2016: EBITDA £7.6m, adjusted profit £6.9m).
Tracsis said the second half of the financial year was “considerably stronger” than the first half. H2 revenues were around £19m (H1 2017: £15.6m), and profitability was also stronger in the second half (H1 2017: EBITDA £3.5m, adjusted profit £3.1m).
The group said: “The board is pleased with the momentum experienced during the year, with highlights including a significant multi-million pound contract win for our TRACS Enterprise Software, successful delivery of a North American contract for our RCM technology, and strong trading for our recently-acquired business On-Trac and SEP.
“Furthermore, the group has now completed a series of structural changes (people, systems and processes) to our Traffic & Data Services Division which should lead to improved margins in this division going forward. Aligned with this aim, the group was pleased to make a strategic investment in Vivacity Labs, a machine learning software business that should bring significant operational benefits to Tracsis and enhance our analytics capabilities.
“The combination of these initiatives, our continued diversification, a good pipeline of M&A prospects, and anticipated industry momentum leaves the group well positioned as we enter the new financial year.”
Full year results will be announced to the market in November.
