Losses widen at transport technology provider

Transport technology provider Tracsis has delivered a ‘disappointing’ first half performance but said it is confident of long-term demand for its data-driven solutions.

The Leeds-based company, which also announced a £3m share buyback programme, said revenue in the six months to 31 January slipped 1% to £36.3m, while pre-tax losses increased from £300,000 to £700,000.

Looking forward the group said it expects FY25 adjusted EBITDA to come in around £12.5m – £13.5m.

Tracsis added that its focus remains on growing recurring software licence and consumer-driven transactional revenues whilst continuing to diversify internationally

Tracsis CEO, Chris Barnes, said: “H1 FY25 performance was disappointing, however the factors behind this will not persist long-term and where possible we have taken action to address them. With a confirmed orderbook and seasonally higher activity levels, we are confident that we will deliver an improved financial performance in H2.

“We are making good progress against our strategic objectives: focusing the business on higher-margin technology solutions; growing annual recurring and transactional revenues; and expanding our international presence. This is supported by strategic M&A and R&D investments alongside the work we have done to transform our operating model.

“The long-term demand for data-driven, customer-focused and safety-critical solutions in our end markets remains strong, despite the near-term headwinds. With a clear strategy, robust core of recurring revenue, healthy cash generation and a strong balance sheet, we remain confident in the group’s prospects.”