Tracsis Reports H1 Revenue Decline, Expects Full-Year Growth Driven by New Contracts

Tracsis, a transport tech leader, reports revenue dip but strong growth in recurring revenue and pipeline, signaling potential for future growth in UK and North America.

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Nasiru Eneji Abdulrasheed
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Tracsis Reports H1 Revenue Decline, Expects Full-Year Growth Driven by New Contracts

Tracsis Reports H1 Revenue Decline, Expects Full-Year Growth Driven by New Contracts

Tracsis plc, a leading provider of transport technology solutions, reported a 6.7% decline in revenue to £36.6 million for the first half of the fiscal year ending January 31, 2024. The company saw a pretax loss of £300,000 compared to a £2.3 million profit in the same period last year.

Despite the revenue drop and statutory losses, Tracsis experienced growth in its recurring revenue from the Rail Technology & Services sector, which increased by 12% to £12.1 million. The company expects a stronger second half of the year, driven by new contracts in the UK and North America.

Tracsis has secured several significant contracts, including the next phase of development work to expand its RailHub cloud-based platform. The company also launched a new Computer Aided Dispatch product with the Northern Indiana Commuter Transportation District (NICTD) in the United States.

Chris Barnes, CEO of Tracsis, stated, "Our transformation programme is progressing as planned and we are seeing the benefits in the growth of our pipeline of major software opportunities, which has more than doubled since 31 July 2023, to £66.2m." The company is transitioning to a broader software-as-a-service business model, which is expected to drive further growth.

Why this matters: Tracsis' performance and outlook highlight the growing demand for advanced transport technology solutions in the UK and North America. The company's focus on software-as-a-service and its ability to secure major contracts demonstrate its strong position in the market and potential for future growth.

Tracsis remains debt-free with a strong balance sheet, enabling it to invest in further growth opportunities. The company announced a 10% increase in its interim dividend to 1.10 pence per share, reflecting its confidence in its growth prospects. Tracsis continues to see significant long-term tailwinds in both the UK and North American markets, underpinned by recent contract wins and a fast-growing pipeline.

Key Takeaways

  • Tracsis revenue declined 6.7% to £36.6M, but recurring rail revenue grew 12% to £12.1M.
  • Tracsis incurred a £300K pretax loss vs. £2.3M profit in prior year.
  • Tracsis secured major contracts, including for RailHub cloud platform and new dispatch product.
  • Tracsis' software-as-a-service transition and growing pipeline signal potential for future growth.
  • Tracsis remains debt-free, increased dividend, and sees long-term tailwinds in UK and North America.