Tracsis PLC Trading Update (5359J)

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RNS Number : 5359J

Tracsis PLC

20 August 2019

20 August 2019

Tracsis plc

("Tracsis" or the "Group")

Trading update

Tracsis, a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, is pleased to provide the following trading update for the year ended 31 July 2019.

Group trading for the year has again been strong, with the second half performance being particularly pleasing. Revenue, EBITDA and Adjusted EBIT for the year are expected to be in line with market expectations(1) and ahead of the previous year(2) with a good mix of organic and acquisitive growth across the Group. The Board is pleased with the growth and performance in the year.

At 31 July 2019, cash balances remained strong at c. GBP24m (2018: GBP22.3m), which again demonstrates excellent cash generation in the year, and is after paying c. GBP9m (net of cash acquired) in respect of the three acquisitions made in the year and the payment of contingent consideration. The Group remains debt free.

Highlights within our Rail Technology & Services Division include the acquisition of Bellvedi Limited, a specialist in timetabling optimisation software, and a five-year Framework Agreement secured with a major Train Owning Group for our TRACS Enterprise product which is Tracsis' largest software contract to date. In addition, the Group experienced very strong organic growth in our rail infrastructure businesses which include MPEC (Remote Condition Monitoring hardware and software) and Ontrac (safety and productivity improvement and risk management software). Growth in the infrastructure space has been driven by high demand from a key UK customer at the end of Control Period 5. We have also continued to invest heavily in our technology base in the period as part of our growth strategy.

Our Traffic & Data Services Division also performed well in the year supported by the acquisitions of Compass Informatics Limited and Cash & Traffic Management Limited, both of which have traded well and continue to deliver high profile projects and events, driven by an excellent and diverse client list. Integration of both businesses into the wider division is well underway, and synergy benefits are expected to be progressively realised. The summer event season has been busy as usual, adding to a very strong performance in the second half of the year for this division. Various margin improvement initiatives adopted across the division in recent times have led to an improved level of profitability for this part of the Group this year alongside good levels of organic growth.

Chris Barnes joined the Group during the year, succeeding John McArthur as Chief Executive Officer on 1 May, and the transition is now complete. John continues to work with Tracsis in a part-time advisory capacity primarily supporting our M&A activities. The pipeline of prospects remains as strong as ever.

Full Year results will be announced to the market in October/November of 2019.

(1) 2019 market expectations: Revenue GBP46.7m, EBITDA GBP10.4m, Adjusted EBIT GBP9.6m.

(2) 2018 actuals: Revenue GBP39.8m, EBITDA GBP9.4m, Adjusted EBIT GBP8.7m.

Enquiries:

Tracsis plc Tel: [phone]

Chris Barnes, CEO

Max Cawthra, CFO

finnCap Ltd Tel: [phone]

Christopher Raggett/Scott Mathieson, Corporate Finance

Andrew Burdis, Corporate Broking

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:

-- Tracsis plc is a technology company and a leading provider of software and hardware products, data capture and data analytic services for the rail, traffic data and wider transport industries.

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

-- The Group is split into two principle operating areas built around detailed industry knowledge and expertise:

- Rail Technology & Services: Software and technology led business supported by consultancy. Develops remote condition monitoring hardware and safety, productivity improvement, risk management and data acquisition software for rail infrastructure providers and software that solves complex resource, asset optimisation and control problems for Train Operators.

- Traffic & Data Services: A largely services led business that focuses on data capture, data analytics, data insights and event traffic management within transport and pedestrian rich environments. The business provides technology and data that underpins large scale intelligent transport system and smart city planning and decision making.

-- 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 event organisers, and a wide variety of large engineering and infrastructure companies.

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

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

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August 20, 2019 02:00 ET (06:00 GMT)