Revenues and profits drop at listed transport tech business

Tracsis, which provides software, hardware and services for transport industries, has seen its revenue decline to £22.2m (H1 2020: £26.4m) in its unaudited interim results for the six months ended 31 January 2021.

Statutory pre-tax profits for the Leeds-based business were £1.1m, £1.3m lower than the prior year (H1 20: £2.4m).

And the company reports adjusted EBITDA of £5.4m (H1 2020: £5.6m), which includes the positive impact of cost reduction actions taken in response to the pandemic.

Tracsis says revenue growth in its Rail Technology & Services Division was offset by lower sales in its Events and Traffic Data businesses, as was expected due to the impact of ongoing COVID-19 restrictions on its end markets.

The estimated total adverse impact to revenue from COVID-19 for the Group was £6.1m across the Events, Traffic Data and Delay Repay businesses.

However, the Group says it is continuing to implement a number of large multi-year rail contracts won in previous years, with two large multi-year rail opportunities in the final stages of contract award.

Tracsis says it has recorded an encouraging start to quarter three trading, with high activity levels across large parts of the Group.

Chris Barnes, chief executive officer, said: “I am pleased with the first half performance which was in line with our expectations and I’m encouraged by the trading momentum in the business as we move through the third quarter.

“The entire Tracsis team has done an outstanding job over the past 12 months in protecting jobs and employee wellbeing, in identifying and winning new business and in robustly responding to the challenges linked to COVID-19.

We have a significant pipeline of large multi-year opportunities across our Rail Technology and Services Division in both UK and international markets, and in our Data Analytics/GIS business unit.

“In addition, we are now starting to see an increase in new business enquiries across those businesses that have been hardest hit by the pandemic and this is driving increased confidence around future growth prospects.

We continue to focus on integration and consolidation activities which alongside the launch of a new Group-wide Tracsis brand will increase the opportunities for R&D collaboration and cross selling.

“We remain committed to pursuing organic and acquisitive growth supported by a strong balance sheet.”