Tracsis is a leading provider of software, hardware and services for the rail, traffic data and wider transport industries, and in response to the rapidly evolving Covid-19 situation has been evaluating the potential impact on the Group.
We expect the Rail Technology & Services Division to have resilience as it derives most of its income from highly recurring product sales and we will continue to remain focused on the delivery of a number of large multi-year client contracts, with staff being able to work on development whilst at home.
We do however expect parts of the Traffic & Data Services Division to be impacted by Covid-19. In particular, our events businesses SEP and CTM both derive a significant amount of revenue from major UK based outdoor events, and in recent days we have been notified by some major clients that events scheduled for this summer will either be cancelled or postponed to the Autumn. We expect further events to be cancelled or postponed in due course. We are attempting to mitigate the impact as much as possible through reduced casual labour costs and other actions that the business can take to offset this. We also expect disruption to our Traffic Data collection and Passenger Analytics activities that are scheduled to take place over the coming weeks, given road traffic and rail passenger activity will be heavily reduced and hence not representative.
Given that the situation is changing rapidly, at this point in time it is not possible to accurately quantify the impact on H2 trading and therefore full year expectations. Further updates will be provided in due course.