Tracsis delivers 'strong' full-year performance

Rail, traffic data and transport technology specialist Tracsis described a “strong” financial performance in its final results on Wednesday, with “high levels” of organic and acquisitive growth.

The AIM-traded company said revenue for the 12 months ended 31 July was up 37% at £68.7m, with organic revenue growth coming in at 24%.

It reported 63% revenue growth in its data, analytics, consultancy and events division, including a post-Covid recovery and contributions from acquisitions.

The rail technology and services division saw revenue rise 13%, including the benefit from multi-year software contract wins that went live during the year, and the acquisition of RailComm.

Adjusted EBITDA was ahead 9% year-on-year at £14.2m, while its profit before tax fell to £2.6m from £4.6m.

The board said that was after £3.1m of exceptional items, including an increase in the fair value of contingent consideration, and transaction costs associated with acquisitions.

Total cash balances stood at £17.2m at year-end, with no debt, after a £13.5m net investment in acquisitions, and contingent and deferred consideration.

The directors proposed a final dividend of 1.1p per share, taking the total dividend to 2p - up from nil distribution in the 2021 period, and consistent with the group's progressive dividend policy that was restored at the half-year.

“We have delivered a financial performance aligned to our long term strategic growth plan, with high levels of organic and acquisitive growth,” said chief executive officer Chris Barnes.

“Our rail technology and services division has won several multi-year software contracts, and in data, analytics, consultancy and events we have seen a strong post-Covid recovery in activity levels.

“We have a growing pipeline of opportunities in both divisions, and we have expanded our addressable markets including our first direct entry into the large and growing North America rail market with the acquisition of RailComm.”

Barnes said the post-acquisition performance of the business was “particularly pleasing”, with good revenue and profit performance, new orders secured for its core products, and an “encouraging” level of interest in products from elsewhere in the group that were already well established in the UK.

“These opportunities leave us well placed to deliver further growth.”

Chris Barnes said the UK rail industry's transition to a new ‘Great British Railways’ structure was meanwhile ongoing, with an overall objective to create a “data-driven, customer-focused, safety-critical future” for the industry.

He said digital transformation would play a “significant” role in the industry's transition.

“First quarter trading is in line with the board's expectations.

“We are confident that there are strong growth prospects for all parts of our group and therefore remain committed to implementing our overall strategic growth and investment plans.

“We will continue to pursue organic and acquisitive growth supported by a strong balance sheet.”

At 1044 GMT, shares in Tracsis were down 1.16% at 939p.

Reporting by Josh White for Sharecast.com.