Leeds-based Tracsis reports strong trading

Tracsis' trading update will be studied by City analysts.
Tracsis' trading update will be studied by City analysts.
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Leeds-based Tracsis, the provider of software, hardware and services for the rail, traffic data and transport industries, said it had enjoyed strong trading after its performance was boosted by acquisitions.

Tracsis' products allow transport operators to computerise their staff and rolling stock schedules, so they can run their trains more efficiently.

In a trading update, Tracsis said: "Group trading for the year has again been strong, with the second half performance being particularly pleasing.

"Revenue, EBITDA and adjusted EBIT for the year are expected to be in line with market expectation and ahead of the previous year with a good mix of organic and acquisitive growth across the group. The board is pleased with the growth and performance in the year.

The statement added: "At 31 July 2019, cash balances remained strong at c. £24m , which again demonstrates excellent cash generation in the year, and is after paying c. £9m (net of cash acquired) in respect of the three acquisitions made in the year and the payment of contingent consideration. The group remains debt free.

The trading update: "Highlights within our Rail Technology & Services Division include the acquisition of Bellvedi Limited, a specialist in timetabling optimisation software, and a five-year Framework Agreement secured with a major Train Owning Group for our TRACS Enterprise product which is Tracsis' largest software contract to date.

"In addition, the group experienced very strong organic growth in our rail infrastructure businesses which include MPEC (Remote Condition Monitoring hardware and software) and Ontrac (safety and productivity improvement and risk management software)."

"Growth in the infrastructure space has been driven by high demand from a key UK customer at the end of Control Period 5. We have also continued to invest heavily in our technology base in the period as part of our growth strategy.

"Chris Barnes joined the Group during the year, succeeding John McArthur as chief executive officer on 1 May, and the transition is now complete. John continues to work with Tracsis in a part-time advisory capacity primarily supporting our M&A activities. The pipeline of prospects remains as strong as ever."