TIDMTRCS
RNS Number : 8945W
Tracsis PLC
15 February 2017
15 February 2017
Tracsis plc
("Tracsis" or the "Group")
Trading Update
Tracsis plc, a leading provider of software and services for the
traffic data and transportation industry, is pleased to provide the
following trading update for the six months ended 31 January
2017.
Group overview
Group revenues for the six months to 31 January 2017 were c.
GBP15.5m (2016: GBP13.1m*), and EBITDA is expected to be slightly
ahead of the previous period (2016: GBP3.2m*) as is Adjusted Pre
Tax Profit (2016: GBP2.9m*).
Group cash balances remained strong at c. GBP12.5m, after paying
aggregate contingent consideration in respect of the SEP and
On-trac acquisitions of GBP1.1m. The business continues to be debt
free.
*Comparative figures restated for the disposal of Tracsis
Traffic Data Pty Limited that took place 22(nd) December 2015.
Rail Technology & Services
On-trac, which was acquired in December 2015 performed well in
the period and made a good contribution towards overall Group
performance, with high levels of recurring revenue. The On-trac
pipeline remains strong with new products garnering significant
interest with our major rail customers.
We were also pleased to complete delivery of our North American
Remote Condition Monitoring order which was announced in August
2016, and continue to target further sales in North America both
with this client and others to complement our strong UK position in
this market.
The Group's software and consultancy offering continued to
benefit from high renewal rates for existing products. Due to
longer sales cycles associated with higher value products combined
with changes in the Department for Transport's franchise bid
timetable, some sales anticipated to take place in H1 are now
expected to take place in H2 which is supported by our current
pipeline.
Traffic & Data Services
SEP, which was acquired in September 2015 continues to trade
well and as noted previously, the majority of the revenue and
profit from this business will be delivered over the summer months.
Due to this seasonality, and as evidenced by last year's trading,
the second half of the financial year is expected to be
significantly stronger than the first half.
In addition, the Traffic & Data Services division is trading
well albeit within competitive market conditions, which has led to
increased price competition and associated gross margin pressure.
Given the Group has grown rapidly to become the UK's largest
transport data collection company, management has taken steps to
maintain operational efficiency through an investment of technology
and an improvement of internal processes which has led to an
associated reduction of costs. These changes ensure the Group is
well positioned for the future.
Summary
Due to the timing of software sales that are anticipated and the
high seasonality inherent in some parts of the Group, the second
half of the financial year is expected to be significantly stronger
than the first half.
The outcome for the full year remains subject to the timely
conversion of new sales for our various software products and
services, supported by the improvement in gross margin initiatives
that commenced at the start of the financial year. Delivery of
these goals will result in revenues and profits being in line with
current expectations and we will provide a further update with our
Interim Results.
The Group's strategy of growth via organic and acquisitive
growth remains unchanged and so too do the key market drivers
within the traffic and transport markets which remain positive.
Results Announcement
The Group's Interim results will be announced on or around 23
March 2017.
For more information please contact:
John McArthur/Max Cawthra, Tel: 0845 125
Tracsis plc 9162
Dominic Emery/Matt Lewis, Tel: 020 7597
Investec Bank plc 4000
Rebecca Sanders-Hewett / Sarah Tel: 0207 382
Fabietti-Dallison / Sam Modlin, 4730
Redleaf Communications Tracsis@redleafpr.com
The information communicated in this announcement is inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No. 596/2014.
Notes to editors:
-- The Group specialises in solving a variety of data capture,
reporting and resource optimisation problems along with the
provision of a range of associated professional services.
-- Tracsis' products and services are used to increase
efficiency, reduce cost and improve the operational performance and
decision making capabilities for clients and customers.
-- The Company offers the following services:
- Rail Technology & Services: Software and technology led
consulting, and Remote Condition Monitoring: Industry strength
software that covers a variety of asset classes working alongside
consulting and related professional services across the operational
and strategic planning horizon, plus Technology and reporting for
critical infrastructure assets in real time, to identify problems
and aid with preventative maintenance.
- Traffic & Data Services: Collation, analytical services,
and event management within traffic and pedestrian rich
environments.
-- Tracsis has a blue chip client base which includes the
majority of UK transport operators. The business also works
extensively with Network Rail, the Department of Transport,
multiple local authorities, Silverstone, Goodwood, and a variety of
large engineering/infrastructure companies.
-- The business drives growth both organically and through
acquisition and has made eight acquisitions since 2008.
-- Tracsis listed on AIM in 2007 under ticker TRCS.
-- For more information visit http://www.tracsis.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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