Transport software firm Tracsis has reported strong revenue growth following a good performance at its Rail Technology & Services division.
The Leeds-based firm said it has also seen revenue growth and margin improvement at its Traffic & Data Services division.
Revenue rose 16 per cent to £39.8m in the year to July 31 and adjusted EBITDA increased 11 per cent to £9.4m.
Operating profit before exceptional items rose 22 per cent to £5.9m.
Tracsis chief executive John McArthur said: "The last 12 months has been another great year for Tracsis on multiple fronts, with strong organic growth and financial performance coupled with progress in improving our operations, building our senior team and further investment in our technology and product base.
"This was capped off by an exciting acquisition in a related transport sector which we feel is poised for significant growth in the near term. The traffic and transport markets are undergoing well publicised and rapid change and I am confident Tracsis is well positioned to meet the challenges and opportunities this brings."
The group raised its full year dividend by 14 per cent to 1.6p per share.
Analysts at Shore Capital said in a note: "Tracsis reported good organic growth across all areas of the group, record levels of revenue and profitability and further progress on a range of operational and strategic goals across both divisions of the business.
"The provider of software and services for the traffic data and transportation industry reports that revenue increased 16 per cent to £39.8m. The vast majority of this increase was organic, with limited revenue from M&A given the specific timing of the TCS and DRS acquisitions.
The group believes its strategy of focusing on markets that generally have high barriers to entry, with contracts that are sold on a recurring/repeat basis, and to a retained customer base that is predominantly blue chip in nature will continue to work well in the future."