Tracsis sees solid growth after year of acquisitions
By Josh White
Date: Thursday 14 Nov 2019
(Sharecast News) - Rail, traffic and transport technology and services provider Tracsis reported a 24% improvement in revenue in its final results on Thursday, to £49.2m.
The AIM-traded firm said its adjusted EBITDA was up 12% for the year ended 31 July, at £10.5m, while its operating profit before exceptional items increased 13% to £6.7m.
Cash balances at period end totalled £24.1m, up from £22.3m at the end of the 2018 financial year, and the board confirmed a 13% rise in the full-year dividend to 1.8p per share.
Fully diluted adjusted earnings per share were 8% higher, at 27.42p.
Looking at its strategic and operational progress, Tracsis noted the completion of three acquisitions during the year, in a bid to enhance its overall product and service offering.
It said all of those had contributed to the group since ownership, with the purchases being being Compass Informatics, Cash & Traffic Management, and Bellvedi.
The company secured a five-year framework agreement with a "major train owning group" during the period for its 'TRACS Enterprise' product, which was Tracsis' largest software contract to date.
It also saw continued high levels of recurring revenue across all of its software products, and reported strong trading in its rail infrastructure businesses, being MPEC, which provides remote condition monitoring hardware and software, and Ontrac, which supplies safety and risk management software.
There was also continued margin improvement within Tracsis' traffic and data services division, the board said, with an increased focus on data analytics and a stronger technology offering.
The board also highlighted the fact that Chris Barnes succeeded John McArthur as group chief executive officer during the year, confirming that the transition was now complete.
"In my first report as the new CEO, I am delighted to present these results which show good growth for the Tracsis Group compared to the previous year," said Chris Barnes.
"The results reflect the impact of the acquisitions that we have completed in the period along with strong organic growth, something which is a key focus as we look to increase collaboration and expand our product offerings across the group."
Barnes said the acquisitions the firm had completed in the year would have a full impact in the next year, and combined with a "strong pipeline" of organic sales opportunities, would provide a "good platform" for the future growth of the business.
"I have inherited a great business, with a wide range of compelling product and service offerings, a great team of colleagues, an excellent blue-chip client base, and I am excited about the prospects for the group."
At 1010 GMT, shares in Tracsis were up 2.89% at 622.5p.
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