Tracsis PLC Trading Update (3257F)

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RNS Number : 3257F

Tracsis PLC

20 February 2018

20th February 2018

Tracsis plc

("Tracsis" or the "Group")

Trading update

Tracsis plc, a leading provider of software and services for the traffic data and transportation industry, is pleased to provide the following trading update for the six months ended 31 January 2018.

Group trading for the first half of the year has been strong across all parts of the business, and in line with management expectations. All key financial metrics for the six months are comfortably ahead of the previous year with Revenues in excess of GBP18m (2017: GBP15.6m), and EBITDA of over GBP4.3m (2017: GBP3.5m).

At 31 January 2018, Group cash balances remained strong at c. GBP18.5m (31 July 2017: GBP15.4m, 31 January 2017: GBP12.7m), which reflects continued excellent cash generation in the period. The Group continues to be debt free and highly cash generative.

The first six months of the year has seen good progress made on a number of strategic initiatives. The Group commenced work on the delivery of a major contract for our TRACS Enterprise Software for a major UK Train Operating Company, secured further work within the US for our Remote Condition Monitoring technology, and On-Trac has secured a number of bespoke software development projects within the UK.

Furthermore, our Traffic & Data Services division has traded well following the process and technology improvements that took place last year. During H2 we will begin the adoption of our Machine Learning 'Felicity' software to support our video analytics work and in doing so further cement the relationship with our investee company Vivacity Labs. We were also pleased to renew a major multi-year contract with a global engineering company which is expected to underpin a significant part of this division's income in future periods.

On 1 February we were pleased to announce the acquisition of Travel Compensation Services Limited and Delay Repay Sniper Limited. The Directors believe these businesses are highly complementary to Tracsis, and will offer significant cross sell and growth opportunities in the foreseeable future. The integration of both businesses is progressing to plan.

The Group's Interim results will be announced on or around 28 March 2018.

For more information please contact:

 
 John McArthur/Max Cawthra,    Tel: [phone] 
  Tracsis plc                   9162 
 Andrew Pinder/Seb Lawrence,   Tel: [phone] 
  Investec Bank plc             5970 
 

The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Notes to editors:

--The Group specialises in solving a variety of data capture, reporting and resource optimisation problems along with the provision of a range of associated professional services.

--Tracsis' products and services are used to increase efficiency, reduce cost and improve the operational performance and decision making capabilities for clients and customers.

--The Company offers the following services:

- Rail Technology & Services: Software and technology led consulting, and remote condition monitoring: Industry strength software that covers a variety of asset classes working alongside consulting and related professional services across the operational and strategic planning horizon, plus technology and reporting for critical infrastructure assets in real time, to identify problems and aid with preventative maintenance.

- Traffic & Data Services: Collation, analytical services, and event management within traffic and pedestrian rich environments. The business provides technology and data that is instrumental in the development of 21(st) century intelligent transport systems and smart cities.

--Tracsis has a blue chip client base which includes all major UK transport owning Groups. The business also works extensively with Network Rail, the Department of Transport, TfL, multiple local authorities, major outdoor music and sporting events, and a wide variety of large engineering and infrastructure companies.

--The business drives growth both organically and through acquisition and has made ten acquisitions since 2008.

--For more information on Tracsis please visit http://www.tracsis.com

This information is provided by RNS

The company news service from the London Stock Exchange

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February 20, 2018 02:00 ET (07:00 GMT)