Tracsis, a leading provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, is pleased to announce its unaudited interim results for the six months ended 31 January 2021.
· Revenue decreased to £22.2m (H1 2020: £26.4m), with growth in the Rail Technology & Services Division offset by lower sales in our Events and Traffic Data businesses as expected due to ongoing Covid-19 restrictions on their end markets
· £6.1m decrease in revenue in those businesses directly impacted by Covid-19. Revenue growth of 5% across the rest of the Group before the contribution from prior period acquisitions+
· Adjusted EBITDA* of £5.4m (H1 2020: £5.6m) only slightly lower than the same period last year, including the positive impact of cost reduction actions taken in response to the pandemic
· Cash balances of £20.8m with no Covid deferrals due to be paid (31 July 2020: £17.9m, 31 January 2020: £26.0m)
· No interim dividend declared. The Board continues to review the situation and is committed to restoring the dividend policy at the earliest appropriate date
· Further growth in higher margin Rail Technology & Services Division, as well as in Data Analytics / GIS
· Continuing to implement a number of large multi-year rail contracts won in previous years
· Two large multi-year rail opportunities in the final stages of contract award
· Traffic Data and Events business units continue to win new projects but at significantly reduced levels
· Cost reduction actions tracking in line with expectations
· Group integration activities progressing well
Post period end Highlights:
· Appointment of Andy Kelly as Chief Financial Officer
· Remote condition monitoring hardware and software contract win with major transit agency in North America
· Launch of new Group-wide branding to improve collaboration and enhance market awareness
· Strengthened the Group's transport consultancy offering through the acquisition of Flash Forward Consulting Ltd
· Encouraging start to Q3 trading with high activity levels across large parts of the Group
+ Group revenue growth excluding the Events, Traffic Data and Delay Repay businesses where activity levels were impacted by Covid-19; and excluding iBlocks that was acquired in March 2020.
* Earnings before finance income & expense, tax, depreciation, amortisation, exceptional items, other operating income, share-based payment charges and share of result of equity accounted investees. See note 10 for reconciliation.
Chris Barnes, Chief Executive Officer, commented:
"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. The entire Tracsis team has done an outstanding job over the past 12 months in protecting jobs and employee wellbeing, in identifying and winning new business and in robustly responding to the challenges linked to Covid-19.
We have a significant pipeline of large multi-year opportunities across our Rail Technology and Services Division in both UK and international markets, and in our Data Analytics/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.
We continue to focus on integration and consolidation activities which alongside the launch of a new Group-wide Tracsis brand will increase the opportunities for R&D collaboration and cross selling. We remain committed to pursuing organic and acquisitive growth supported by a strong balance sheet."