Tracsis reveals half year mark falls ‘in line with expectations’ following acquisitive period
Transport software provider Tracsis has this morning announced that its financial results are “in line with management expectations” following an acquisitive period.
The Leeds-based listed group has released its interim results for the six months ending 31 January 2019, stating that group revenues slightly rose to £18.7m compared to the £18m achieved the prior year.
Pre-tax profits saw a modest dip from £2.4m to £2.1m, and adjusted EBITDA also fell from £4.3m to £4.2m.
During this period Tracsis completed two acquisitions in the period, both of which are expected to bolster its Traffic and Data Services division.
On 15 January the group acquired Dublin-based Compass, which is its first overseas transaction. Compass is a software development and data analytics company that specialises in combining geographical information systems (GIS), location technologies, data analytics and field computing.
On 16 January Tracsis completed the acquisition of CTM, which provides event traffic planning, admission control, and a range of other event-related services to some of the UK’s largest and most prestigious event clients.
CTM is highly complementary to the Tracsis Traffic & Data Services division with good cross-sell potential along with clear synergy benefits with Tracsis’ existing SEP Events business which was an excellent acquisition for Tracsis, that should lead to margin improvement in the fullness of time.
The full six month impact of these deals is expected to come in the second half of the financial year.
John McArthur, CEO of Tracsis, said: “This was another busy period for the Group and we have made good progress in delivering to our strategy of organic and acquisitive growth. We were pleased to have completed two acquisitions in the period which will benefit the second half of the financial year, and also secured a significant software contract which is strategically important for Tracsis and the wider rail industry.
“The Directors are pleased with the results for the period and the business is well placed to deliver full year results in line with market expectations, with the second half of the year expected to be stronger given the seasonality in the business and the contribution from the newly acquired businesses.”