Tracsis forecasts revenue rise

Last year the Leeds-based group reported revenues of £8.7m and pre-tax profit of £3m.

The Leeds-based group said underlying profits for the year ending July 31 would be in line with previous market expectations.

It added that the group’s cash position is around £6m.

“Tracsis continues to aggressively manage costs and has maintained a prudent approach to how it undertakes investment decisions,” it said in a trading statement. “The business remains debt free, actively manages cash reserves and remains committed to a strategy of delivering shareholder value through a combination of acquisitive and organic growth.”

The group said the acquisition of Sky High, which took place in April, would make a “good contribution” to the group’s overall performance. It added that the elimination of surplus PLC related overheads combined with other immediate synergies had enabled both cost savings and performance improvements leading to an enhanced operating margin for Sky High.

The group is currently involved in negotiations with a major customer to continue the next phase of a significant framework agreement for its condition monitoring technology.

It also welcomed the Government’s recent lifting of the embargo on UK rail re-franchising and said it had entered into a long term agreement with one of the major operating groups for retention of its consultancy and software services.

It also expects to work with most of the other bidders in varying capacities.

“Looking ahead, the next few years should be a period of stability in the consultancy and software offering and allow the group to invest in a broader range of products and services,” it said.

Chief executive John McArthur said: “The progress made since the acquisition of Sky High has been very pleasing and we are excited by the opportunities presented to us in the new markets using technology and services familiar to us.

“We look forward to updating the market in due course on further developments, and in concurrence with the positive industry indicators, we will work to drive further shareholder value through organic growth and acquisition.”

Tracsis, a Leeds University spin-out, started out with a software arm, helping rail firms optimise use of staff and trains. It has now expanded into hardware and services.