Tracsis on acquisition trail as profits jump 24pc

The Leeds-based group said that following a period of record growth in 2014, it has built on this with notable wins in overseas markets and further growth in its domestic market.

Revenues from rail and bus software performed well as the group continues to work with the vast majority of train operating companies. Its technology is used by Virgin Trains, First Group, Go-Ahead, Serco, Arriva and National Express and one of its biggest customers is Network Rail.

Tracsis produces software that can prevent train derailments and delays and its products allow transport operators to computerise their staff and rolling stock schedules, so they can use their resources more efficiently.

This year the group believes it will benefit from the award of new rail franchises and it is aligned to support bidders for both the Northern and Transpennine Express franchise bids.

CEO John McArthur said: “Typically, all bidders will use our software in such shape or form. Both Northern and Transpennine Express are big prizes to win.”

A decision will be made on both franchises in the next few months.

Mr McArthur said the group has a “lot of irons in the fire” when it comes to acquisitions.

“We have a very high bar on what interests us. It has to be niche, very profitable and the price has to be right. We are cash-rich and debt-free.”

WH Ireland analyst Eric Burns said: “This is a good result overall driven by an excellent 28 per cent increase in revenue at Data Capture.

“The balance sheet is as strong as ever and acquisitions will remain a key feature.

“Having traded as low as 350p last month, for no apparent reason, the shares are on an upward trajectory once more.”