Rail industry planning software and consultancy provider Tracsis (LON:TRCS) today said it was expecting revenue delays following the change of government. In an update, the company said it continues to trade profitably and results have been in line with expectations but re-tendering for the Essex Thameside and Greater Anglia franchises is likely to be delayed. The company's shares remained unmoved on the news at 51.5p.
The company said: "The DfT has today announced plans for a consultation exercise on rail franchising policy to be carried out prior to further franchises being re-let. The net result of this will mean revenue connected to these franchises which was expected to fall June-August 2010 will likely move into 2011. To minimise the impact of these delays the group has re-directed resources away from franchise bidding and on to further roll-out of software and associated services with our TOC customers." It insisted that this was purely a timing issue and there was no material reduction to trading activity in the mid term.
Tracsis announced a a further contract win with an unnamed UK train operating company. It said the contract secured licence revenue for its recently released TRACSRoster optimisation suite for three years with a value of more than £0.15m. "This win is a key milestone in the roll-out of Tracsis's product range and should pave the way for broader industry acceptance," it said.
In April, Tracsis reported that sales in the half-year to January 31 had remained flat at £1.0m, with pre-tax profits down to £75k from £249k the year before. At the time, the company said it had a healthy sales pipeline in anticipation of pending rail re-franchise activity.
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