A busy rail franchising period, high level of software renewals and a framework agreement with a major UK infrastructure provider helped Tracsis (TRCS) more than double its revenues. The rail technology provider reported buoyant trading across all four divisions, and sees scope for significant growth in the US following a successful pilot project.
Chief executive John McArthur said the group was profiting from record levels of government spending on trains and rising passenger numbers. He also credited a first full-year contribution from Sky High, which collects traffic data. The business forms part of Tracsis’ Data Capture & Analytics segment, where sales almost tripled to £12m. Key to this success was a big contract win with a UK transport agency.
Meanwhile, Tracsis’s Remote Condition Monitoring division, which uses software to identify transport issues, saw its sales increase by two-thirds to £5.8m, thanks mainly to a big framework agreement with a major UK infrastructure customer. Tracsis's US business also seems to be moving forward fast since its commercial launch with a major railroad company a year ago. In July the existing deal was expanded, and Tracsis now feels in a position to sell the technology to other operators.
Broker WH Ireland expects adjusted pre-tax profit of £5.5m for the current financial year, giving adjusted EPS of 17.2p – up from £5m and 15.5p.
| TRACSIS (TRCS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 364p | MARKET VALUE: | £96.1m | |
| TOUCH: | 358p-370p | 12-MONTH HIGH: | 375p | 190p |
| DIVIDEND YIELD: | 0.2% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 68p* | NET CASH: | £8.9m | |
| Year to 31 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 2.60 | 0.58 | 2.50 | nil |
| 2011 | 4.10 | 1.12 | 4.50 | nil |
| 2012 | 8.67 | 3.01 | 9.96 | 0.55 |
| 2013 | 10.8 | 2.59 | 8.42 | 0.70 |
| 2014 | 22.4 | 4.20 | 12.9 | 0.80 |
| % change | +106 | +62 | +53 | +14 |
Ex-div: 29 Jan Payment: 13 Feb *Includes intangible assets of £10.7m, or 41p a share | ||||
