LONDON (ShareCast) - (Sharecast News) - Rail, traffic and rail software and technology company Tracsis reported a fall in revenue to £22.2m in its first half on Thursday, from £26.4m a year earlier.
The AIM-traded firm said growth in the rail technology and services division was offset by lower sales in its events and traffic data businesses, as expected due to ongoing Covid-19 restrictions in those end markets.

It reported a £6.1m decrease in revenue in the businesses directly impacted by Covid-19, with revenue growth of 5% across the rest of the group before the contribution from prior period acquisitions.

Adjusted EBITDA slipped to £5.4m for the six months ended 31 January, from £5.6m, slightly lower than the same period in the prior year, including the positive impact of cost reduction actions taken in response to the pandemic.

Cash balances at period end stood at £20.8m, with no Covid-19 deferrals due to be paid.

The board declared no interim dividend, adding that it was continuing to review the situation, and was committed to restoring the dividend policy as early as it could.

"I am pleased with the first half performance which was in line with our expectations and I'm encouraged by the trading momentum in the business as we move through the third quarter," said chief executive officer Chris Barnes.

"We have a significant pipeline of large multi-year opportunities across our rail technology and services division in both the UK and international markets, and in our data analytics and graphic information system (GIS) business unit.

"In addition, we are now starting to see an increase in new business enquiries across those businesses that have been hardest hit by the Covid pandemic and this is driving increased confidence around future growth prospects."

Barnes said the company was continuing to focus on integration and consolidation activities which, alongside the launch of a new group-wide Tracsis brand, would increase the firm's opportunities for research and development collaboration and cross selling.

"We remain committed to pursuing organic and acquisitive growth supported by a strong balance sheet."

At 1230 BST, shares in Tracsis were down 0.61% at 715.6p.

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