Shares of Leeds-based Tracsis plc, a provider of software and services for the traffic data and transportation industry, rose about 5% on Tuesday after it announced a trading update for the year ended July 31, 2019.
Tracsis said it expects to meet market expectations for 2019 of £46.7 million revenue, £10.4 million EBITDA and £9.6 million adjusted EBIT.
That would better 2018 actuals of £39.8 million revenue, £9.4 million EBITDA and adjusted EBIT of £8.7 million.
Tracsis said: “Group trading for the year has again been strong, with the second half performance being particularly pleasing … with a good mix of organic and acquisitive growth across the group …
“At 31 July 2019, cash balances remained strong at c. £24m (2018: £22.3m), which again demonstrates excellent cash generation in the year, and is after paying c. £9m (net of cash acquired) in respect of the three acquisitions made in the year and the payment of contingent consideration.
“The group remains debt free.
“Highlights within our Rail Technology & Services Division include the acquisition of Bellvedi Limited, a specialist in timetabling optimisation software, and a five-year Framework Agreement secured with a major Train Owning Group for our TRACS Enterprise product which is Tracsis’ largest software contract to date.
“In addition, the group experienced very strong organic growth in our rail infrastructure businesses which include MPEC (Remote Condition Monitoring hardware and software) and Ontrac (safety and productivity improvement and risk management software).
“Growth in the infrastructure space has been driven by high demand from a key UK customer at the end of Control Period 5.
“We have also continued to invest heavily in our technology base in the period as part of our growth strategy.
“Our Traffic & Data Services Division also performed well in the year supported by the acquisitions of Compass Informatics Limited and Cash & Traffic Management Limited, both of which have traded well and continue to deliver high profile projects and events, driven by an excellent and diverse client list.
“Integration of both businesses into the wider division is well underway, and synergy benefits are expected to be progressively realised.
“The summer event season has been busy as usual, adding to a very strong performance in the second half of the year for this division.
“Various margin improvement initiatives adopted across the division in recent times have led to an improved level of profitability for this part of the group this year alongside good levels of organic growth.
“Chris Barnes joined the group during the year, succeeding John McArthur as Chief Executive Officer on 1 May, and the transition is now complete.
“John continues to work with Tracsis in a part-time advisory capacity primarily supporting our M&A activities.
“The pipeline of prospects remains as strong as ever.”