Upbeat Tracsis waits on the resumption of railway franchises

The Leeds-based group said trading in its first half, the six months to the end of January, has been “buoyant”.

It expects revenues of £4m to beat last year’s £3.7m.

Underlying earnings and pre-tax profits are also expected to beat last year, when pre-tax profits hit £1.13m.

“The group has produced further growth in the period and is trading in line with expectations at the half-year point,” said chief executive John McArthur.

“There is still a lot to be delivered in the months ahead but the directors remain cautiously optimistic.

“We will continue to pursue our stated strategy and we feel confident of achieving further growth this year.”

Tracsis has been heavily acquisitive in recent years and said cash balances exceed £8.5m. It plans to pay an interim dividend “in due course”.

The company said it has a “great pipeline of acquisition prospects that will stand Tracsis in good stead for the future”.

“We’ve done four deals since IPO and we want to carry on,” said Mr McArthur recently.

“It’s not burning a hole in our pockets. We’re out there as a buyer and we’ve looked at a lot of prospects – I’m guessing in excess of 30.”

Tracsis, a University of Leeds 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.

Franchise tendering is up in the air after the fiasco over the West Coast Main Line contract, with Eurostar chairman Richard Brown leading a second inquiry in the whole re-franchising process.

“The group looks forward to the outcome of the Brown review which will determine how and when rail franchising activity returns to normal,” said Tracsis.

Despite this, Mr McArthur said overall trends are positive.

“Eighty to 90 per cent of the UK franchises are up for tender over the next five years. It’s going to be very busy.”