Tracsis (TRCS) , a provider of technology and services to the transportation sector, released a trading update for the year ended 31 July 2023 (FY23).
Trading was in line with management expectations with revenues up 19% to £81.5m from £68.7m last year, and strong growth in both divisions. Adjusted EBITDA is expected to clock in at £16m, up from £14.2m last year.
Tracsis had £15.3m in cash at period end from £17.2m last year, after £9.5m of outflows related to contingent and deferred consideration that was in line with expectations. All material earn-outs have now been covered.
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Strong performance from transport technology provider Tracsis in FY23, meeting management and market expectations. Strong sales growth, a robust cash position, and healthy cash generation will ensure the company remains on a growth trajectory through further R&D investment and acquisitions.
Tracsis' Rail Technology and Services Division delivered particularly strong growth based on the delivery of a series of large multi-year SaaS contracts for Train Operators and Network Rail. This has driven a further increase in rail technology software licence usage and annual recurring revenue. The division also saw strong growth in North America driven by the US government's infrastructure spending bill, which is accelerating technology investment.
At the same time, the Data, Analytics, Consultancy and Events Division delivered revenue growth ahead of expectations, benefiting from new contract wins in Data Analytics/GIS and ongoing demand for specialist consultancy services, in addition to a strong post-Covid lockdown recovery in the Events and Traffic Data businesses.
Tracsis said it expected the weighting of growth resulting from its technology investments and contract pipeline to materialise in H2 2024, placing a potential future value inflection point for investors to look forward to.
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