Tech business looks beyond ‘disappointing’ results to future growth opportunities
Leeds-based transport technology provider, Tracsis, says its performance has been “disappointing overall” as it publishes its audited final results for the year ended 31 July 2024.
The business recorded revenues of £81m (2023: £82m) and a pre tax profit of £1m (2023: £7.1m), along with adjusted EBITDA of £12.8m (2023: £16m).
Tracsis estimates the total adverse impact of the UK General Election on its FY24 group revenue was around £2m.
Chris Barnes, chief executive officer, said: “Despite our financial results for FY24 being impacted by the timing of the UK General Election and lower yard automation conversion in North America, we have made significant progress over the past 12 months in transforming our operating model and laying the foundations for our future growth.
“We have delivered further growth in rail technology licence usage and annual recurring revenues, and have a large pipeline of new software opportunities in both the UK and North America, where long-term market drivers remain strong.
“The UK Rail Industry remains in a period of transition as the new government prepares to provide further detail on its strategic vision for the railway. Tracsis’ products and services are well placed to support this.
“Some short-term headwinds remain across the UK Rail supply chain related to Control Period 7 funding restrictions from Network Rail, which is impacting our Remote Condition Monitoring hardware activity. The changes to national insurance and minimum wage legislation announced in the October Budget will bring additional cost into our business.”
Tracsis says its work to transform its operating model cost it £3m during the year to 31 July 2024.
It says these costs related to measures such as staff cuts where roles were duplicated or no longer required, enhancements to cyber security provision and streamlining the group’s operating site footprint and legal entity structure.
The business explains cost savings resulting from these actions have been re-invested in upskilling its commercial, technical and delivery capabilities.
It says this will better position the group to convert and deliver a growing pipeline of multi-year software opportunities.
