Tracsis contract could rise to Â£10m in value

'‹Transport software firm Tracsis has won its first major contract in North America in a Â£400,000 deal that analysts described as 'game changing'. Analysts at Shore Capital said the contract is 'a pivotal event that will lead to earnings upgrades and a re-rating of the shares'.

They said that the initial deal is likely to be the first of many orders and over the long term, the contract could be worth £10m or more.

Leeds-based Tracsis produces software that can prevent train delays and derailments.

Tracsis CEO John McArthur said: “We are delighted to have secured this significant order with a major class 1 operator having clearly demonstrated the business case and benefits of our remote condition monitoring technology.

“We are hopeful this contract will lead to a further roll-out across the client’s network in the fullness of time and also act as a valuable reference case with other US rail customers.”

Tracsis sees the US rail industry as being the largest and most accessible growth market for the group’s remote condition monitoring technology.

It said that this latest contract win illustrates it has the capability and product set to address this large overseas market opportunity, although the specific timing of further sales in new territories remains difficult to predict.

The units will be installed in the coming months across multiple geographic locations on the client’s network. The order is expected to be fulfilled before the end of 2016.

The group will issue a full year end trading update on August 22.