25 August 2021                                                                     

Tracsis plc

("Tracsis" or "the Group")

Trading Update

Tracsis, a leading provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, is pleased to provide the following trading update for the year ended 31 July 2021.

Group revenues are expected to be close to £50m (2020: £48.0m) reflecting a strong end of year recovery in activity levels in our Traffic Data and Events business units, and further organic growth in the Rail Technology and Services Division and in Data Analytics/GIS. The Group expects to report an adjusted EBITDA margin in excess of 25% (2020: 21.8%) which includes the positive impact of cost reduction actions taken in response to the pandemic.

Cash balances at the end of July were c£25.4m (2020: £17.9m) with no Covid deferrals due to be paid. This once again reflects strong cash generation within the Group and provides a strong platform for continued investment in future organic and acquisitive growth opportunities.

Our Rail Technology and Services Division has continued to trade well. The Division benefits from high levels of recurring software revenue and has a large pipeline of multi-year opportunities. Performance for the year to 31 July 2021 includes the initial benefit from the large RailHub Enterprise Software contract win announced in July 2021, as well as continued strong demand for our Remote Condition Monitoring products.

The Data, Analytics, Consultancy and Events Division has performed well despite the impact of Covid-19 on the end markets of our Traffic Data and Events businesses. Our primary objective throughout the Covid pandemic has been to protect jobs and employee wellbeing, as a result of which we have been well positioned to respond quickly to increased demand in both markets as Covid restrictions have been lifted. We anticipate further recovery in activity levels through Q1 of FY 21/22, supported by the recently announced Government-backed insurance scheme for the live events sector.

Results for the year ended 31 July 2021 will be announced to the market in November 2021.

Notes to editors: 

-    Rail Technology & Services:  Software and technology/product led business. Develops remote condition monitoring hardware, data acquisition software and safety and risk management software for rail infrastructure providers. Software that solves complex resource, asset optimisation and control problems for Train Operators and Smart Ticketing, Delay Repay and other retail software to improve the customer experience for rail users.

-    Data, Analytics, Consultancy & Events: A largely services led business that focuses on data capture, data analytics, GIS, data insights, consultancy and event traffic management within a range of transport and pedestrian rich environments.  The business provides technology/bespoke products and data that underpins large scale intelligent transport system and smart city planning and decision making.