TRANSPORT software firm Tracsis cheered investors with the news that it expects revenue and profit to be significantly ahead of current market forecasts this year.
The Leeds-based firm, which produces software that can prevent train derailments and delays, said it expects revenues to exceed £20m in the year to July 31 as a result of strong trading across all areas.
CEO John McArthur said: “The group continues to perform well and this has been buoyed by record levels of investment into UK rail to cope with an ever increasing demand for services.
“We believe public transport, particularly rail, is set for further significant growth in order to meet the capacity and performance challenges that will be placed on it in the years ahead. Tracsis is well placed to benefit from this growth.”
Tracsis is gearing up for the next round of rail franchise awards. The firm, which supplies Virgin Trains, First Group, Go-Ahead, Serco, Arriva and National Express, is working on franchise bids with East Coast, ScotRail, Essex Thameside, Thameslink, Crossrail and DLR.
Analyst Eric Burns at WH Ireland said: “Current trading is being supported by the favourable combination of record levels of investment in the UK rail industry; a busy franchise bid timetable (five up for renewal in the current year); Tracsis’ position on a framework agreement with a major UK rail customer; and the acquisition of Datasys made earlier this year.”