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Cash generative Tracsis expects strong first-half growth
Traffic software company Tracsis announced on Tuesday that it expects strong growth for its half-year earnings and revenue when compared to the previous year.
Revenues for the six months up to December 31 is guided to be in excess of £18m, compared to £15.6m over the same period the previous year, and earnings before interest, tax, depreciation and amortisation are expected to reach £4.3m compared to £3.5m the year before.
Furthermore, the company estimated its cash balance would reach £18.5m, a 46% increase in comparison to January 2017.
Tracsis is currently debt free and "highly cash generative", the company said in a statement.
"The first six months of the year has seen good progress made on a number of strategic initiatives. The group commenced work on the delivery of a major contract for our TRACS Enterprise Software for a major UK train operating company, secured further work within the US for our remote condition monitoring technology, and On-Trac has secured a number of bespoke software development projects within the UK," Tracsis added.
As well, its traffic and data services division had "traded well" following a series of process and technology improvements which took place last year.
On 1 February, the company announced that it had acquired Travel Compensation Services and Delay Repay Sniper, two businesses that Tracsis described as "highly complementary" to itself.
As of 1612 GMT, Tracsis' shares were up 7.29% at 515.00p.