Resilient performance at listed software firm

Tracsis, which provides software, hardware and services for transport industries, has recorded revenues of £48m (2019: £49.2m) in its unaudited final results for the year ended 31 July 2020.

The Leeds-based business made a statutory pre-tax profit of £4.1m (2019: £6.6m) and adjusted EBITDA of £10.5m (£9.6m excluding IFRS 16) (2019: £10.5m).

It says the pandemic’s effects on its Traffic & Data Services Division was worth an estimated £10m of revenue versus budgeted expectations, but adds that action was taken to cut costs and to mitigate the impact.

And it notes some loss of revenue was offset at a Group level by improved performance in its Rail Technology & Services Division, which did better than budget expectations and was “generally unaffected” by the pandemic.

Tracsis says it has two major rail contracts in later stages of negotiation, while it has also achieved renewal and extension of several large multi-year agreements for Traffic Data and Event contracts.

Chris Barnes, the company’s chief executive officer, said: “After a strong H1, I am pleased that the business was able to robustly navigate itself through the H2 challenges linked to Covid-19.

“We continue to see strong demand and growth across our Rail Technology & Services division and in our data & analytics capabilities.

“These continue to underpin our growth strategy and improving EBITDA margins.

“Whilst we believe we have successfully navigated the first phase of the Covid-19 crisis, and are well positioned for the future, we continue to closely monitor short term trading conditions in our Events and Traffic Data business units within the Traffic & Data Services Division.

“We are confident the medium to long term growth prospects for all parts of the Group are unchanged and we therefore remain committed to our overall strategic growth and investment plans.

“We will continue to proactively manage costs for as long as Covid-19 continues to impact the Group whilst maintaining the skills and capacity required to quickly respond post the end of the pandemic.”