Tracsis
Final Results beat expectations
Tracsis plc (“Tracsis” or the “Company” and with its subsidiaries the “Group”) (AIM: TRCS), a leading developer and consolidator of resource optimisation software, condition monitoring technology, and consultancy services to passenger transport industries, is pleased to announce its audited final results for the year ended 31 July 2012.
Financial Highlights:
- ·Revenues increased 112% to £8.7m (2011: £4.1m)
- ·Adjusted EBITDA* increased 164% to £3.3m (2011: £1.2m)
- ·Profit before tax increased 169% to £3.0m (2011: £1.1m)
- ·Cash balances up by £2.9m to £7.6m (2011: £4.7m)
- ·Early settlement of deferred consideration in respect of the MPEC acquisition
- ·Final dividend proposed of 0.35p per share. Interim dividend of 0.2p per share paid during the year, hence full year dividend of 0.55p
* Earnings before finance income, tax, depreciation, amortisation, exceptional items and share-based payment charges
Operational Highlights:
- ·Several new contract wins across the Group
- ·Continued uptake and demand for the MPEC condition monitoring technology
- ·First sales of TRACS-RS, a new software product which aids with the process of rolling stock vehicle planning
- ·Sustained involvement with UK rail refranchising where Tracsis works with a variety of transport operating groups
- ·COMPASS software product completed a major system delivery in Scandinavia
- ·Several key projects delivered across Northern Europe and Australasia
John McArthur, Chief Executive Officer, commented:
“We are once again delighted with the performance of the Group, with strong growth in both revenue and profitability. Looking ahead, we remain well placed to address the needs of the transportation industry – primarily removing extraneous resourcing costs plus improving service delivery and network robustness. There is a significant growth opportunity available to Tracsis both in the UK market and overseas and we will address this both organically and through acquisitions as appropriate.”
Enquiries:
| John McArthur, Tracsis plc | Tel: 0845 125 9162 |
| Katy Mitchell, WH Ireland Limited | Tel: 0113 394 6618 |
| Rebecca Sanders Hewett/Jenny Bahr, Redleaf Polhill | Tel: 0207 566 6720 |
Chairman’s and Chief Executive Officer’s Report
Introduction
We are pleased to report on a further period of substantial growth for Tracsis plc, our fifth in a row since joining AIM and a year that has been a step change in the size, profitability and maturity of the Group.
Originally a niche software play, Tracsis has now developed a diverse range of complementary software, hardware and services, all of which are focused on delivering demonstrable performance improvements to our transport clients whether that be in reducing direct cost, improving service delivery and compliance, or increasing overall network performance.
The Group works with almost all of the leading passenger transport companies within the UK such as Arriva, First Group, Go-Ahead, National Express, Stagecoach, and Virgin. Given these credentials we now stand on the cusp of breaking into overseas markets with several key projects having been delivered in the past 12 months across Northern Europe and Australasia. Our successes have led to Tracsis now employing close to 50 full time staff and over 200 contractors working across three UK offices.
Moreover, looking at pure financial metrics, in less than five years we have grown revenues from less than £1m at IPO to £8.7m this year whilst generating £3.3m Adjusted EBITDA*. This is a business that has delivered during some spectacularly tough times none more so than in the current year.
* Earnings before finance income, tax, depreciation, amortisation, exceptional items and share-based payment charges
Business overview
Tracsis is a provider, developer and consolidator of resource optimisation software, consultancy services and technology for companies in the passenger transport industries. We operate mainly in the UK but are increasingly expanding our horizons to overseas markets.
Tracsis’ market offering can be broadly categorised into three distinct revenue streams at present;
1. Application software: Tracsis has developed various products to optimise resources (including staff scheduling & rostering, and rolling stock scheduling), capture data, manage the collated information and report and communicate performance.
2. Professional services: Tracsis offers operational and performance planning consultancy and modelling / simulation along with passenger demand analysis & surveying; and
3. Condition monitoring and data logging equipment that includes embedded software for the management and maintenance of infrastructure.
These products and services have a common theme in assisting transport operators run a more efficient and productive service. This is achieved through the optimisation of resource allocation, both people and vehicles, coupled with tools that assist with strategic and operational planning issues and decision making. Given the increasing importance of passenger transport markets within the UK and abroad, the Directors believe these to be growth markets and that there will be sustained demand for the Group’s products and services in years to come.
In June of 2011, we acquired MPEC Technology Limited (MPEC), our fourth acquisition to date. The 2010/11 results only included two months of trading for MPEC, but the acquisition was part of the Group for a full year in 2011/12, and the contribution to the Group has been very significant.
