Transport tech firm warns of hit from snap election

Pre-election activity restrictions in the wake of Rishi Sunak’s call for a snap election on 4 July will cost Tracsis between £3m and £5m, the firm said today.

In mid June analysts expected the Leeds transport software and hardware provider would see full-year revenues of around £85m. But the firm, which had anticipated an autumn election,  said today that projects have been rescheduled and new orders have contracted  as pre-election restriction impact transport spending and decision-making in central and local government bodies, and train operators.

The firm said it does not expect to realise additional revenues from its North American pipeline until next financial year.

Tracsis said its revenue and EBITDA expectations for 2025 remain unchanged, and that it has no plans to ijmplement cost-mitigation strategies given the temporary nature of the election impact., which has affected its UK rail technology, transport consultancy and traffic data businesses.

Tracsis’ strategy to deliver organic and acquisitive growth, supported by a strong balance sheet and long-term structural tailwinds in its core markets, remains unchanged. As previously communicated, any potential government changes in the UK or US are not anticipated to adversely affect the Group’s growth prospects in FY25 and beyond. Given our medium and long term confidence in the business and robust cash position the Board’s progressive dividend policy will remain unaffected.

Chief executive Chris Barnes said, “Our positive direction of travel and significant market opportunity remains unchanged for Tracsis. While the impact of the pre-election restrictions coinciding with our busy final quarter of the financial year is unquestionably disappointing, this is an isolated event outside of our control.

“Overall, the momentum in the group remains strong and our market opportunity continues to grow, especially in North America. I’d like to thank our team for their continued efforts, during what has been a year of positive operational progress, despite this performance. We look forward to returning to business-as-usual across our affected UK businesses, as we emerge from the UK election period, regardless of the political outcome.”