REG - Tracsis PLC - Trading Update and Notice of Results

TracsisAnnouncement

22/02/2024 07:00

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RNS Number : 9930D  Tracsis PLC  22 February 2024

22 February 2024

 

Tracsis plc

("Tracsis" or "the Group")

 

Trading Update and Notice of Results

 

New contract wins and ongoing strategic progress

 

Tracsis, a leading transport technology provider, is pleased to provide the
following trading update for the six months ended 31 January 2024.

 

The Group has continued to make good progress in executing its strategy to
create a scalable platform for accelerated growth and to transition to a
broader SaaS operating model.

 

Financial performance consistent with expectations

The Group's performance in the period has been consistent with expectations.
As previously announced, FY24 growth will be weighted towards H2 reflecting
milestone delivery timelines in the orderbook and a transition to SaaS for new
contract wins in North America. The Group expects H1 revenue to be in excess
of £36.5m (H1 2023: £39.2m). Adjusted EBITDA margin is expected to be c16%
(H1 2023: 19%) which reflects the impact of the investments made in the prior
year to enhance the Group's senior leadership capabilities and to accelerate
the growth of our pipeline of large multi-year opportunities. We expect the
adjusted EBITDA margin for the full year to return to historical levels.

 

Cash balances remain strong at c.£16.8m (H1 2023: £17.0m 1  (#_ftn1) ; FY
2023: £15.3m). 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.

 

Full year expectations remain unchanged

The Board anticipates that FY24 performance will be in line with market
expectations. Post period end we have made good progress in securing new
contracts that will start to deliver revenue in the second half of this
financial year.

 

Strong pipeline growth following investment in commercial capabilities

In the Rail Technology and Services Division, the Group estimates that its
addressable pipeline for major software opportunities across both the UK and
North American markets has more than doubled during the six months ended 31
January 2024, following investment in enhancing our sales teams.

 

In the UK we have secured several new contract awards that will underpin
growth in H2 and beyond. These include the first pilot deployment of the
"Hopsta" smart ticketing mobile app platform that is now underway with a UK
TOC, as well as the next significant funded phase of development work to
enhance the RailHub safety and risk management platform. In North America,
activity has been focused around completing the full deployment of the new
Computer Aided Dispatch product ("PTC BOS") with a US transit operator. This
is due to be completed in March 2024. Post period end the Group has won new
contracts for its yard automation product offering that will start to be
delivered in the second half of the current financial year.

 

The Data, Analytics, Consultancy and Events Division has delivered revenue
growth slightly ahead of expectations, supported by high activity levels in
Events and by Traffic Data survey work to support large UK transport
infrastructure projects. We have also launched Tracsis Geo Intelligence which
is targeting the deployment of our earth observation technology offering into
the UK and North America rail markets.

Transformation activities progressing to plan

As previously announced, the Group is executing a programme of actions in FY24
to transform its operating model and to accelerate its future growth
trajectory. These actions are progressing in line with the Board's
expectations and will be substantially completed during FY24 financial year.
 Exceptional costs of £1.3m were incurred in the period in order to deliver
this transformation. The Board expects these costs to total c£2m for the full
year, as previously announced.

 

Well positioned for long-term growth

We continue to see significant software growth opportunities in the UK and
North American rail technology markets, as the industry looks to modernise and
adopt digital solutions. The actions taken to transform our operating model
and to accelerate pipeline growth leave the Group well positioned to deliver
further growth.

 

 

Notice of Results and Investor Presentation

 

The Group's interim results will be announced on 24 April 2024

 

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 interim results, a
live online investor presentation will be given by management on 26 April  at
1.00pm UK time.

 

Anyone wishing to participate should register here:
https://bit.ly/TRCS_H124_webinar
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbit.ly%2FTRCS_H124_webinar&data=05%7C02%7CAndrew.Kelly%40tracsis.com%7C4887c70793f54e4abd6408dc32d257ff%7C6b98f2667d234d0a8b8a7e4cf7fded86%7C0%7C0%7C638441126215706164%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=9BLS8OJFHlV4CGWFfjcptCNo3vLXBrTTVWifk9olrpc%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 plc                                                                                                 Tel: 0845 125 9162

 Chris Barnes, CEO
 Andy Kelly, CFO

 Cavendish Capital Markets Limited                                                                           Tel: 020 7220 0500
 Jonny Franklin-Adams/Giles Balleny/Charlie Beeson, Corporate Finance
 Andrew Burdis/Sunila de Silva, Corporate Broking

 Alma                                                                                                        Tel: 020 3405 0205
 David Ison/Rebecca Sanders-Hewett/Joe Pederzolli                                                            tracsis@almastrategic.com

 

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  (#_ftnref1) The H1 23 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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