REG - Tracsis PLC - Trading Update and Notice of Results

TracsisAnnouncement

23/08/2023 07:00

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RNS Number : 1151K  Tracsis PLC  23 August 2023

23 August 2023

 

Tracsis plc

("Tracsis" or "the Group")

 

Trading Update and Notice of Results

 

Tracsis, a leading transport technology provider, is pleased to provide the
following trading update for the year ended 31 July 2023.

 

Trading for the year has been in line with the Board's expectations. Group
revenue is expected to have increased by c.19% to over £81.5m (2022:
£68.7m), with strong growth in both Divisions. The Group expects adjusted
EBITDA to be c.£16m (2022: £14.2m).

 

Cash balances at the end of July were c.£15.3m (2022: £17.2m 1 ), after
c.£9.5m of cash outflows in the year relating to contingent and deferred
consideration that was consistent with expectations and aligned to strong
performance from historic acquisitions. All material earn-outs have now been
paid. The Group's robust cash position and healthy cash generation leave it
well positioned to continue to invest in its technology base and further
acquisitions.

 

The Rail Technology and Services Division has delivered strong growth in the
UK based on the delivery of a series of large multi-year SaaS contracts for
Train Operators and Network Rail. This has driven a further increase in rail
technology software licence usage and annual recurring revenue, despite
ongoing industrial disputes and the delayed transition to the new Great
British Railways structure.

 

The Rail Technology and Services Division has also delivered strong growth in
North America driven by the US Government's infrastructure spending bill which
is accelerating new technology investment.  We are building good sales
momentum with Transit and Freight Operators and rail served ports and
industrials as we expand our product portfolio.

 

The Data, Analytics, Consultancy and Events Division has delivered revenue
growth ahead of expectations. This includes the benefit from new contract wins
in Data Analytics/GIS and ongoing demand for specialist consultancy services,
in addition to a very strong post Covid lockdown recovery in the Events and
Traffic Data businesses.

 

In order to continue providing a solid platform for ongoing scalable growth,
the Group has continued to integrate its activities, technologies and
operating model. Alongside this, technology investment has increased to
accelerate future growth which will continue through the forthcoming financial
year.  As a Group we expect the weighting of growth to be in the second half
of the next financial year as we continue to grow our pipeline and deliver a
large orderbook of work.

 

Notice of Results and Investor Presentation

 

Results for the year ended 31 July 2023 will be announced on 15 November 2023.

 

The Board is committed to communicating with all investors equally and
directly, to ensure that its strategy, business model and performance are
clearly understood. Accordingly, as part of the Group's full year results
roadshow, a live online investor presentation will be given by management on
17 November at 1.00pm UK time.

 

Anyone wishing to participate should register here:
https://bit.ly/TRCS_FY_webinar
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbit.ly%2FTRCS_FY_webinar&data=05%7C01%7CAndrew.Kelly%40tracsis.com%7C86db8bb1a54b4c6a6b4108db9fffe2fd%7C6b98f2667d234d0a8b8a7e4cf7fded86%7C0%7C0%7C638279693600675551%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=60sqadtSBlLH%2BrUcCWjBTDKSYQNWICuGs46CR5OSidk%3D&reserved=0)

 

The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU)
No.596/2014

 

 

 

 Enquiries:

 Tracsis                                                                                                                                                                                                                                                                                                                       Tel: 0845 125 9162
 plc
 Chris Barnes, CEO
 Andy Kelly, CFO

 finnCap                                                                                                                                                                                                                                                                                                                       Tel: 020 7220 0500
 Ltd
 Christopher Raggett/Charlie Beeson, Corporate Finance
 Andrew Burdis/Sunila de Silva, Corporate Broking

 Alma                                                                                                                                                                                                                                                                                                                          Tel: 020 3405 0205
 PR
 David Ison/Rebecca Sanders-Hewett/Joe Pederzolli                                                                                                                                                                                                                                                                              tracsis@almapr.co.uk

 

Notes to editors:

 

·    Tracsis plc is a technology company and a leading provider of
software and hardware products, data capture and data analytics/GIS services
for the rail, traffic data and wider transport industries.

 

·    Tracsis' products and services are widely used to increase
efficiency, reduce cost and risk, improve operational and asset performance,
improve safety management and decision making capabilities and improve the
overall end-user experience for clients and customers.

 

·    The Group is split into two principal operating areas built around
detailed industry knowledge and expertise:

 

-    Rail Technology & Services:  A software, technology and product
led business. It develops and supplies software that solves complex resource,
asset optimisation and control problems for Train Operators, and Smart
Ticketing, Delay Repay and other retail software to improve the customer
experience for rail users. It also develops remote condition monitoring
hardware, data acquisition software, and safety and risk management software
for rail infrastructure providers.

-    Data, Analytics, Consultancy & Events: A largely services led
business that focuses on data capture, data analytics, GIS, earth observation,
data insights, consultancy and event traffic management within a range of
transport and pedestrian rich environments.  The business provides technology
and bespoke products and data that underpin large scale intelligent transport
systems, smart city planning and positive environmental decision making.

 

·    Tracsis has a blue-chip client base which includes all major UK
transport owning groups, Network Rail, Passenger and Freight Train Operating
Companies, the Department for Transport, TfL, multiple local authorities,
major outdoor music and sporting event organisers, and a wide variety of large
engineering and infrastructure companies. In North America our clients include
Class 1 rail freight companies, transit operators, shortline railroads and
several large rail served ports and industrials.

 

·    The business drives growth both organically and through acquisition
and has made seventeen acquisitions since 2008.

 

For more information on Tracsis please visit http://www.tracsis.com
(http://www.tracsis.com)

 

 1  The 2022 cash balance included $2.7m (£2.2m) held in escrow following the
RailComm acquisition in March 2022, which was paid during the year ended 31
July 2023 based on RailComm having achieved certain financial targets in the
first full year post acquisition.

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