Rail software firm on track to see revenues more than double

The Leeds-based firm, which produces software that can prevent train derailments and delays, said both revenues and profits are in line with expectations for the six months to January 31.

It added that its balance sheet is strong with cash balances of over £7m and the group remains debt free.

The company’s products allow transport operators to computerise their staff and rolling stock schedules, so they can use their resources more efficiently.

Its technology is used by Virgin Trains, First Group, Go-Ahead, Serco, Arriva, Scot Rail and National Express. One of its biggest customers is Network Rail, which is responsible for the UK’s train tracks and infrastructure.

Last month the group announced a “significant” £2.2m order for its remote condition monitoring equipment from an unnamed existing UK client.

The company’s remote condition monitoring services are used to identify problems with large infrastructure schemes.

Yesterday it said that delivery is under way and will be completed during the current financial year.

Tracsis’ chief executive John McArthur said Tracsis is well placed to win further contracts of this nature both within the UK and overseas.

He added that Sky High, which was bought last April, made a significant contribution and the integration of the business should be complete by the financial year end.

The group’s software and consultancy business has been working on rail re-franchising bid work following the revised timetable issued by the Department for Transport and Mr McArthur said there is good visibility on the workload over the coming months.

Analyst Eric Burns, at WH Ireland, said: “A positive update from Tracsis confirms that trading is in line, with first half revenues expected to be more than £9m.

“This would represent more than 55 per cent of our full year revenue forecast of £16.2m, giving us good confidence in the full year outcome.”