Transport software provider welcomes return to growth

Tracsis, which provides software, hardware and data analytics services for the transport industry, says its revenues have increased to £50.2m (2020: £48m) in its audited results for the year ended 31 July 2021.

The listed company, which is headquartered in Leeds, notes growth in its higher margin Rail Technology & Services Division and in Data Analytics/GIS is only partially offset by lower sales in its Events and Traffic Data businesses caused by ongoing Covid-19 restrictions.

Pre-tax profits for the year increased to £4.6m (2020: £4.1m) and the company reported adjusted EBITDA of £13m (2020: £10.5m), reflecting growth in software revenue and the positive impact of cost reduction actions taken in response to the pandemic.

Tracsis says it is well positioned to benefit from the strategic direction outlined for the UK Rail Industry in the Williams-Shapps plan for Rail.

Among the company’s post year end highlights has been the granting of another smart ticketing contract in the UK.

Chris Barnes, chief executive officer, said: We have a record pipeline of large multi-year opportunities across all business units, and we are continuing to implement a number of large contracts won in previous years.

“We completed delivery of a large RailHub enterprise software contract at the end of the year, which is a significant achievement for our safety and risk management software business and creates a strong foundation for future growth.

“In the Data, Analytics, Consultancy and Events Division we continue to see high activity levels in the Data Analytics/GIS market.

“The recent acquisition of Icon Group further expands our capabilities and offering in this growing market.

“Our consultancy business has been strengthened following the acquisition of Flash Forward Consulting in February 2021.

“Activity levels in the Events and Traffic Data business that were hardest hit by the pandemic have started to rebound strongly.

“Provided we do not return to lockdown restrictions, we expect both markets to recover to full activity levels through the course of the coming year.

“We are confident there are strong growth prospects for all parts of the Group and remain committed to implementing our overall strategic growth and investment plans.”