Leeds-based transport data analytics firm Tracsis plc said it continues to actively pursue M&A opportunities “with a focus on extending our software and technology footprint and enhancing recurring revenue growth.”
The news came as Tracsis reported that its profit before tax rose 179% to £7.1 million as revenue rose 19% to £82 million in the year ended July 31, 2023.
Total dividend rises to 2.2p per share from 2p.
Tracsis is a technology company and provider of software and hardware products, data capture and data analytics/GIS services for the rail, traffic data and wider transport industries.
Tracsis CEO Chris Barnes said: “This has been a year of significant financial and operational progress for Tracsis.
“We have delivered strong organic and earnings-accretive acquisitive growth, have completed the implementation of several large, complex enterprise software contracts, and have made further progress in integrating the group’s activities and enhancing our capabilities.
“The performance of our North American rail business has been particularly pleasing alongside the strong performance of all businesses within the Data, Analytics, Consultancy and Events Division.
“Q1 trading has started in line with expectations, and the group remains well positioned to deliver further growth in the coming year.
“We have a strong orderbook and a fast growing opportunity pipeline across both Divisions.
“We expect FY24 growth to be weighted towards H2 given the impact uncertainty in UK rail has had on delivery timescales and the impact an expected SaaS transition will have on the phasing of rail revenues in North America.
“Digital transformation will continue to play a significant role in the rail industry’s transition to a data-driven, customer-focused, safety-critical future.
“The breadth of Tracsis’ product offering and leading digital end-to-end solutions has a clear alignment to the growing needs of the rail industry and increased demands from a customer experience perspective.
“We are well placed to help the industry to increase passenger revenues whilst also delivering operational performance improvements and efficiency savings.
“We remain committed to implementing our overall strategic growth and investment plans, and will continue to pursue both organic and acquisitive growth supported by a strong balance sheet.”
In its outlook, Tracsis added: “In the UK and North America we see significant long-term tailwinds as the industry looks to modernise and adopt digital solutions.
“We believe that we are well positioned to capitalise on these changes and have a growing pipeline of opportunities to help drive market share and expand our footprint in these markets.
“A change of government in the UK and/or the US is not expected to impact these growth drivers.
“The group has a clear growth strategy and has a strong balance sheet to support its delivery. We are making good progress in implementing this strategy, including winning new multi-year software contracts, and continuing to deliver on contracts won in previous years.
“We have recognised the need to accelerate the transformation of the group’s operating model based on lessons learned from recent SaaS implementations and we will invest over the coming year in the actions required to provide a robust platform for ongoing scalable growth based on best practices.”