Listed transport software firm braces for coronavirus impact

Tracsis, a Leeds-based software provider for the transport industries, has warned parts of its business will be hit by the coronavirus-related cancellation and postponement of events.

In a trading update today, the business notes that its Rail Technology & Services Division should prove resilient, as it derives most income from recurring product sales.

And the company says it will continue to remain focused on the delivery of a number of large, multi-year client contracts, with staff being able to work on development from home.

However, it adds: “We do expect parts of the Traffic & Data Services Division to be impacted by Covid-19.

“In particular, our events businesses SEP and CTM both derive a significant amount of revenue from major UK based outdoor events, and in recent days we have been notified by some major clients that events scheduled for this summer will either be cancelled or postponed to the autumn.

“We expect further events to be cancelled or postponed in due course. We are attempting to mitigate the impact as much as possible through reduced casual labour costs and other actions that the business can take to offset this.

“We also expect disruption to our Traffic Data collection and Passenger Analytics activities that are scheduled to take place over the coming weeks, given road traffic and rail passenger activity will be heavily reduced and hence not representative.

“Given that the situation is changing rapidly, at this point in time it is not possible to accurately quantify the impact on H2 trading and therefore full year expectations.

“The Group is a resilient business with substantial cash balances maintained and strong cash flow. Interim results to 31 January 2020 will be issued on 2 April 2020.”

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