REG - Tracsis PLC - Trading Update and Notice of Results

TracsisAnnouncement

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RNS Number : 7570W  Tracsis PLC  27 August 2025

27 August 2025

 

Tracsis plc

("Tracsis" or "the Group")

 

Trading Update and Notice of Results

 

Full year performance in line with guidance. Well positioned for long-term
growth

 

Tracsis (LSE: TRCS), a leading transport technology provider, is pleased to
provide the following trading update for the year ended 31 July 2025.

 

Financial performance in line with revised guidance

 

Group revenue is expected to be c.£82.0m (2024: £81.0m) with adjusted
EBITDA* expected to be c.£12.6m (2024: £12.8m), in line with the guidance
provided in the Interim Results on 24 April 2025.

 

Year-end cash stood at £23.4m (2024: £19.8m), reflecting healthy cash
generation and providing capacity for continued investment in the Group's
technology base, organic growth and targeted acquisition opportunities. During
H2, the Group also completed its previously announced share buyback programme,
repurchasing the full £3.0m, reflecting the Board's confidence in the Group's
long-term prospects.

 

*Adjusted EBITDA is defined as earnings before net finance income or expense,
tax, depreciation, amortisation, exceptional items, other operating income,
and share-based payment charges.

 

Further positive commercial progress

 

The Group delivered an improved H2 trading performance despite previously
announced market headwinds, reflecting the strength and technical capability
of Tracsis' offering. This performance was underpinned by growing recurring
software licence and consumer-driven transactional revenues, delivery of a
substantial Rail Technology & Services software development orderbook, and
seasonal activity levels in Data, Analytics, Consultancy & Events.

 

Key developments included:

 ·             Digital pay-as-you-go (DPAYG): Selected by Rail Delivery Group as one of four
               DPAYG ticketing trials that will run across the Northern and East Midlands
               railway networks. Trials are expected to commence between September and
               November 2025, each running for nine months and providing further opportunity
               for Tracsis to demonstrate the capabilities of its Hopsta-powered smart
               ticketing app, already available to rail passengers as 'Tap&Pay' with
               ScotRail.
 ·             Ongoing delivery of previously announced multi-year contract wins secured
               during H2 FY25 including the Tap Converter contract with Rail Delivery Group
               (Customer Experience) and the Network Rail programme for RailHub development
               (Safety & Risk Management).

 

FY26 expectations unchanged

 

UK Rail market headwinds expected to persist throughout FY26:

 ·             Network Rail Control Period 7 ("CP7") funding remains constrained, with Remote
               Condition Monitoring ("RCM") hardware volumes continuing at lower than
               historical levels. We continue to expect RCM volumes to increase as CP7
               progresses, and in particular as larger infrastructure investment projects are
               approved, though the timing remains uncertain. Tracsis continues to take a
               prudent outlook on near term volume levels of RCM hardware.
 ·             The renationalisation of Train Operating Companies, alongside the creation of
               Great British Railways, is driving extended procurement timelines for our
               Operations & Planning solutions.

 

In this context, the Board expects to deliver modest growth in FY26 consistent
with current market expectations(1), supported by:

 ·             A large installed base generating significant recurring revenues, together
               with a confirmed orderbook for FY26 delivery.
 ·             Run rate activity levels consistent with FY25.
 ·             A pipeline of rail technology solutions providing incremental growth
               opportunities, though procurement timelines remain protracted.

 

Well positioned for long-term growth

 

Long-term market drivers remain favourable:

 ·             Transport industries are modernising and adopting digital solutions that
               increase efficiency, enhance performance, increase productivity and improve
               safety.

 

Well positioned to capitalise on growth opportunities:

 ·             Proven technology solutions, aligned with UK government's strategic plans for
               the future of UK Rail.
 ·             Strong cash position to fund strategic investment in new product development
               and M&A.

 

Consistent, focused growth strategy:

 ·             Embed a product-focused business built around scalable application software
               platforms.
 ·             Grow recurring software licence revenue and consumer-driven transactional
               revenues.
 ·             Continue to diversify internationally.

 

(1) Current market consensus for FY26 is £82m revenue and £13m adjusted
EBITDA.

 

New Revolving Credit Facility

 

The Group is also pleased to announce it has agreed a new £35m Revolving
Credit Facility with HSBC UK Bank plc, expiring in July 2028 with an option to
extend until July 2030. This is intended to supplement the Group's healthy
cash generation, providing additional headroom and flexibility for the Group
to continue to execute against its strategic objectives including new product
development and M&A.

 

David Frost, Chief Executive Officer of Tracsis, commented:

 

"After a challenging first half, the Group has delivered a good H2 trading
performance, reflecting the strength of our technology, the quality of our
people, and their ability to execute in complex markets. I would like to thank
the whole Tracsis team for their hard work in achieving this.

 

Since joining the Group, I have spent time with colleagues across the business
and gained an early understanding of our operations, challenges and
opportunities. Visiting our UK, Ireland and North America locations, I have
seen first-hand the deep technology expertise, industry knowledge and
commitment to innovation that sets Tracsis apart.

 

The combination of these strengths gives me confidence in the Group's ability
to deliver sustainable, long-term growth. Supported by a strong balance sheet
and healthy cash generation, we remain focused on growing higher-margin
recurring revenues and expanding our international presence through both
acquisition and new product development."

 

Notice of Results and Investor Presentation

 

Results for the year ended 31 July 2025 will be announced on Thursday 20
November 2025.

 

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
Friday 21 November 2025 at 1.00pm UK time.

 

Anyone wishing to participate should register here:
https://engageinvestor.news/TRCS_IP_1125
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fengageinvestor.news%2FTRCS_IP_1125&data=05%7C02%7Candrew.kelly%40tracsis.com%7Cfb650d82f35f4da7648608dde4c0d5f1%7C6b98f2667d234d0a8b8a7e4cf7fded86%7C0%7C0%7C638918239064730806%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C4000%7C%7C%7C&sdata=jObhMtm%2B9TN6ykSlFbX%2Btlaen8F1fPo4QmkuYZ2bnqw%3D&reserved=0)

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by the Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

Enquiries:

 Tracsis plc                                                              +44 (0)845 125 9162

 David Frost, CEO

 Andy Kelly, CFO

 Berenberg (Nominated Adviser, Corporate Broker & Financial Adviser)      +44 (0)20 3207 7800

 Mark Whitmore / Richard Andrews / Ryan Mahnke

 James Thompson (QE)

 Alma Strategic Communications                                            +44 (0)20 3405 0205
 David Ison / Rebecca Sanders-Hewett / Joe Pederzolli / Sarah Peters

                                                                        tracsis@almastrategic.com (mailto: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's 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)

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