Key contract wins fuel growth at transport tech group

Tracsis, a transport technology provider, expects its group revenue to have increased by about 19% to over £81.5m (2022: £68.7m) in a trading update for the year ended 31 July 2023.

The Leeds-based business, which operates across two divisions, also expects adjusted EBITDA to be around £16m (2022: £14.2m).

The group’s says a robust cash position and healthy cash generation leave it well positioned to continue to invest in its technology base and further acquisitions.

Tracsis adds its Rail Technology and Services Division has delivered strong growth in the UK based on the delivery of a series of large multi-year software-as-a-service contracts for Train Operators and Network Rail.

This has driven a further increase in rail technology software licence usage and annual recurring revenue, despite ongoing industrial disputes and the delayed transition to the new Great British Railways structure.

Meanwhile, the group’s Data, Analytics, Consultancy and Events Division has delivered revenue growth ahead of expectations.

It includes the benefit from new contract wins in Data Analytics/GIS and ongoing demand for specialist consultancy services, in addition to a “very strong” post Covid lockdown recovery in the Events and Traffic Data businesses.

Tracsis says technology investment has increased to accelerate future growth which will continue through the forthcoming financial year.  

It expects the weighting of growth to be in the second half of the next financial year.