Technology specialist on track with transformation strategy

Transport technology specialist Tracsis says it is on track with its strategy to reposition the business and accelerate growth.

The Leeds-based company employs 550 people in the UK, Ireland and United States providing software, hardware and data analytics to the rail, traffic data and wider transport industries.

Tracsis is moving the business to a broader software-as-a-service model.

Revenues for its first half are expected to be down by 7%, to £36.5m, while its margins – as measured by adjusted EBITDA – will be around three percentage points lower, to 16%.

However Tracsis said this performance “has been consistent with expectations” and reflects the impact of investments as it looks “to accelerate the growth of our pipeline of large multi-year opportunities”.

It expected its current financial year’s results to be weighted towards the second half because of milestone delivery timelines in its orderbook and a transition to SaaS for new contract wins in North America.

It said: “We continue to see significant software growth opportunities in the UK and North American rail technology markets, as the industry looks to modernise and adopt digital solutions.

“The actions taken to transform our operating model and to accelerate pipeline growth leave the Group well positioned to deliver further growth.”

Tracsis has incurred costs of £1.3m, which it expects to rise to £2m, as part of its transformation strategy.