Transport software provider and company of Connect Yorkshire EIR John McArthur, Tracsis has this morning issued a positive trading update in which is expects to see improved full-year revenues and EBITDA after completing a duo of acquisitions.
The Leeds-based listed group this morning issued a trading update for the first half of the year, stating that group revenues are expected to be ahead of the previous year at £19m (2018: £18.1m). The firm said that EBITDA and profit were also expected to be ahead of the previous year (2018: EBITDA £4.3m, 2018: Adjusted Profit £3.9m).
Tracsis completed the acquisitions of both Compass Informatics and Cash & Traffic Management in January, with the full six month impact coming in the second half of the financial year. Tracsis said: “The Directors believe both acquisitions are highly complementary to the Group’s Traffic & Data Services division with good potential for further growth in the coming years.”
At 31 January 2019, group cash balances stood at £18.7m (31 July 2018: £22.3m, 31 January 2018: £18.5m). This is after the cash outflow in respect of acquisitions made and the final contingent consideration in respect of the Ontrac acquisition from 2016.
Tracsis added: “General trading across the Group remained busy throughout H1. In January, the Group announced a significant five-year Framework Agreement with a major Train Owning Group for its TRACS Enterprise product. This roll out is well underway and revenues from this contract are expected to be realised in the second half of the financial year and beyond.
“The Group’s RCM offering experienced positive trading conditions, Ontrac secured a multi-year software deal at Crossrail and TCS were awarded a new multi-year contract for our delay repay offering. Our Traffic & Data Services division traded in line with expectations and will benefit significantly from the Compass and CTM acquisitions in H2 and beyond. “
The firm said it continued to invest in its technology stack and was making excellent progress developing the next generation of planning products for the transport industry. The group’s pipeline of acquisition opportunities remains strong.
Chris Barnes, CEO Designate, joined Tracsis on 4 February and the transitioning process from John McArthur is “well underway and proceeding to plan.”
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