Confident post-elections outlook for transport tech business
Leeds-based transport technology provider, Tracsis, expects revenues of more than £81m (2023: £82m) and adjusted EBITDA of around £13m (2023: £16m), in a trading update for the year ended 31 July 2024.
It adds that cash balances increased by over £4m since its previous position at the end of May 2024 and stood at £19.8m as of the end of July 2024 (2023: £15.3m).
Tracsis says its robust cash position and healthy levels of cash generation leave it well placed to continue to invest in its technology base and to pursue organic growth supplemented with targeted acquisition opportunities.
Chris Barnes, chief executive officer, said: “With the disruption caused by the timing of the UK General Election now behind us, we have continued to make good progress towards our strategic objectives in the year.
“The business remains well placed, with all signs suggesting that the UK rail industry’s transition to a data-driven, customer-focused, safety-critical future will continue under the new government.
“Alongside the positive momentum we have seen in our pipeline of software opportunities in both the UK and North American markets, this leaves us in a strong position to drive ongoing scalable growth in FY25 and beyond.
“We are committed to our strategy to deliver long-term value for all our stakeholders through the continued pursuit of both organic and acquisitive growth, supported by a strong balance sheet and healthy cash generation, and look to the future with confidence.”
Tracsis points to positive commercial progress during the year, highlighting double digit organic revenue growth from its Rail Technology and Services Division in the UK.
It has also secured new contracts in smart ticketing and delay repay and the next funded phase of RailHub development from Network Rail.
The business completed development of a new Computer Aided Dispatch product in North America and explains this opens up significant new opportunities in this market.
Tracsis also won renewals with several of its largest customers in its Data, Analytics, Consultancy and Events Division for delivery in FY25.
The business says it has re-focused its product and services portfolio on fast-growing, higher margin activities.
As a result, it will no longer pursue new contracts for certain non software-related activities which are not aligned with these objectives.
The company says that while this will result in a short-term reduction of about £5m in revenue and a decrease in associated EBITDA, it is confident this strategy will enable it to focus on higher growth, higher margin application software activities.
