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]; 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
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:
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Tracsis plc
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Tel: 0845 125
9162
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Chris Barnes, CEO
|
|
Andy Kelly, CFO
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|
Cavendish Capital Markets Limited
|
Tel: 020 7220
0500
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Jonny
Franklin-Adams/Giles Balleny/Charlie Beeson, Corporate
Finance
|
|
Andrew
Burdis/Sunila de Silva, Corporate Broking
|
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|
Alma
|
Tel: 020 3405 0205
|
David Ison/Rebecca
Sanders-Hewett/Joe Pederzolli
|
tracsis@almastrategic.com
|
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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