Leeds-based Tracsis aims to pursue organic and acquisitive growth opportunities

TRACSIS today said it was committed to pursuing organic and acquisitive growth opportunities as it published its latest financial results.

Thursday, 8th April 2021, 5:41 pm
The results will be studied by City-based analysts

Tracsis, which provides software, hardware, data analytics and services for the rail, traffic data and wider transport industries, has announced its unaudited interim results for the six months ended 31 January 2021.

Over the period, revenue decreased to £22.2m, from £26.4m in the comparative period the year before, with growth in the rail technology and services division offset by lower sales in the events and traffic data businesses due to ongoing Covid-19 restrictions on their end markets.

The company said the adjusted EBITDA of £5.4m was only slightly lower than the same period last year, which was partly due to the "positive impact" of cost reduction actions taken in response to the pandemic.

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Tracsis said it was continuing to implement a number of large multi-year rail contracts won in previous years and two large multi-year rail opportunities have reached their final stages.

The traffic data and events business units continue to win new projects but at significantly reduced levels, the company said.

The company also recently secured a remote condition monitoring hardware and software contract win with a major transit agency in North America.

Chris Barnes, the chief executive, commented: “I am pleased with the first half performance which was in line with our expectations and I’m encouraged by the trading momentum in the business as we move through the third quarter.

"The entire Tracsis team has done an outstanding job over the past 12 months in protecting jobs and employee wellbeing, in identifying and winning new business and in robustly responding to the challenges linked to Covid-19.

"We have a significant pipeline of large multi-year opportunities across our rail technology and services division in both UK and international markets, and in our Data Analytics/GIS business unit.

"In addition, we are now starting to see an increase in new business enquiries across those businesses that have been hardest hit by the Covid pandemic and this is driving increased confidence around future growth prospects.

"We continue to focus on integration and consolidation activities which alongside the launch of a new group- wide Tracsis brand will increase the opportunities for R&D collaboration and cross selling. We remain committed to pursuing organic and acquisitive growth supported by a strong balance sheet.”

Mr Barnes said potential growth could come from bolt-on acquisitions and much larger, strategic additions to the company.

He said the group's business model was not directly impacted by passenger numbers but it was "intrinsically linked" to how the railways run.

Tracsis employs more than 100 staff in Yorkshire. Mr Barnes said the business expected to achieve very steady growth in the region.