Leeds-based transport data analytics firm Tracsis plc said on Wednesday it will continue to actively pursue further M&A opportunities with a focus on extending its software and technology footprint and enhancing recurring revenue growth.

The news came as Tracsis confirmed its revenue increased 37% to £68.7 million in the year ended July 31, 2022, and adjusted EBITDA increased 9% to £14.2 million.

Profit before tax fell to £2.6 million from £4.6 million “after £3.1m of exceptional items including increase in fair value of contingent consideration and transaction costs associated with acquisition of businesses.”

Total dividend will be 2p per share.

In its outlook, Tracsis said: “M&A remains a core part of our strategy and we have taken an important step in the year with our first acquisition in North America.

“This further increases our addressable markets and diversifies our growth opportunities.

“We will continue to actively pursue further M&A opportunities, with a focus on extending our software and technology footprint and enhancing recurring revenue growth.”

Tracsis CEO Chris Barnes said: “I am pleased with the progress the group has made this year in executing its growth strategy.

“We have delivered a financial performance aligned to our long term strategic growth plan, with high levels of organic and acquisitive growth.

“Our Rail Technology and Services Division has won several multi-year software contracts, and in Data, Analytics, Consultancy and Events we have seen a strong post-Covid recovery in activity levels.

“We have a growing pipeline of opportunities in both divisions, and we have expanded our addressable markets including our first direct entry into the large and growing North America rail market with the acquisition of RailComm.

“The post-acquisition performance of this business has been particularly pleasing, with good revenue and profit performance, new orders secured for its core products, and an encouraging level of interest in products from elsewhere in the group that are already well established in the UK.

“These opportunities leave us well placed to deliver further growth.

“The UK rail industry’s transition to a new Great British Railways structure is ongoing and the overall objective is to create a data-driven, customer-focused, safety-critical future for the industry.

“Digital transformation will play a significant role in the industry’s transition and our range of rail technology products and services is well placed to help the rail industry deliver operational performance improvements and efficiency savings.

“We continue to invest in implementing a more integrated operating model to help us to execute our growth strategy …

“Q1 trading is in line with the board’s expectations.

“We are confident that there are strong growth prospects for all parts of our group and therefore remain committed to implementing our overall strategic growth and investment plans.

“We will continue to pursue organic and acquisitive growth supported by a strong balance sheet.”