Tracsis announces a strong recovery as Covid restrictions are lifted

Tracsis, which helps run major events such as Glastonbury, The Grand National, Cheltenham Festival and the British Grand Prix, said revenues are expected to be close to £50m in the year to July 31, reflecting a strong end of year recovery in activity levels in its traffic data and events divisions.

Tracsis reported further organic growth in its rail technology and services division

The Leeds-based firm also reported further organic growth in its rail technology and services division and in its data analytics division.

The group now expects to report more than a 25 per cent jump in adjusted annual earnings, which includes the positive impact of cost reductions in response to the Covid-19 pandemic.

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Cash balances at the end of July were around £25.4m (up from £18m in 2020) with no Covid deferrals due to be paid.

Tracsis said this reflects strong cash generation within the group and provides a strong platform for investment in future organic and acquisitive growth opportunities.

The firm said that its rail technology and services division has continued to trade well.

It said that the division benefits from high levels of recurring software revenue and has a large pipeline of multi-year opportunities.

The division has benefited from the large RailHub Enterprise Software contract win announced in July, as well as strong demand for its remote condition monitoring products.

Tracsis said that its data, analytics, consultancy and events division performed well despite the impact of Covid-19.

The firm said that its primary objective throughout the Covid pandemic was to protect jobs and employee wellbeing and it is now well positioned to respond quickly to increased demand as Covid restrictions are lifted.

The group said it anticipates further recovery in activity levels, supported by the recently announced Government-backed insurance scheme for the live events sector.

Tracsis said its results for the year to July 31 will be announced to the market in November.