Tracsis sees clients suffering cost pressures

Tracsis helps transport firms to save cash by managing their staff more efficiently.

In the six months ended January 31 2012, revenue increased to £3.66m, from £1.24m in the same period the year before, which reflected “very strong trading” across the group.

Profit before tax was £1.13m, compared with £127,000 in the same period the previous year.

Tracsis has grown steadily since it was spun out of the University of Leeds’ School of Computing in 2004.

The company’s products allow transport operators to computerise staff and crew scheduling. Its MPEC subsidiary, which was bought in June last year, allows remote monitoring of trackside equipment, reducing maintenance costs for operators.

John McArthur, the chief executive, said: “These interim results reflect the group’s continued growth and maturity as a diversified technology company with both revenues and profits increasing significantly against the same period last year.

“We remain excited about further growth opportunities, both organic and by way of acquisition.”

The company also announced the payment of an interim dividend of 0.2p per share.

In a report to accompany the results, the company said: “While there are healthy indicators to suggest rail markets continue to grow, software sales in the current economic climate has been challenging.”

Tracsis said its target customers continued to suffer from cost pressures, which were partly due to the recession and cuts in public sector funding.

The statement added: “Coupled with these pressures, UK Rail is going through widespread evolution as operating companies become increasingly aligned with Network Rail. This change holds new opportunities for Tracsis but we believe it has slowed the decision-making process with potential customers.”