Tech firm’s latest results shift focus on market expansion

Transport technology specialist, Tracsis has performed ‘in line with projections’ as it reveals its results for the six months ended 31 January 2024.

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

Despite a slight revenue decline of 6.7%from £39.2m to £36.6m and a 24% decrease in adjusted EBITDA from £7.5m to £5.7m compared to H1 23, the company maintains a cash reserve of £16.8m.

Rail technology and services recurring revenue increased by 12% to £12.1m, demonstrating growth in this segment.

With a focus on innovation and market expansion, Tracsis reports growth in software opportunities in both the UK and US markets, with estimates indicating a doubling since July 23.

Entry into the US software market segment is highlighted through the launch of a new Computer Aided Dispatch product with the Northern Indiana Commuter Transportation District (“NICTD”).

 Chris Barnes, CEO said: “The programme of actions to transform the Group’s operating model is progressing to plan and we are beginning to see the benefit in the growth of our pipeline of major software opportunities. Our financial performance for the period reflects this period of transition, with further growth anticipated in H2 and beyond.

“We have secured important new contract wins and made good progress in growing rail technology software licence usage and recurring revenue in the period. I am particularly encouraged by the success we are achieving in North America, where we are soon to go live with an important new dispatch product. Our team has done a great job of delivering this, opening up a large new segment in this market.

Digital transformation will continue to play a significant role in the rail industry’s transition to a data-driven, customer-focused, safety-critical future and Tracsis’ product offering aligns well with this. We are confident in the Group’s growth prospects, underpinned by recent contract wins and a fast-growing pipeline, and we continue to see significant long-term tailwinds in both the UK and North America.”