Rising passenger volumes and tight budgets have forced transportation operators to cut costs, increase efficiency and strengthen safety measures. Growing numbers rely on software and services from Tracsis (TRCS) to monitor and optimise their operations. That propelled the traffic data and rail technology group's adjusted cash profits up 4 per cent to £3.5m in the reported period.
New products such as Bugle Day One - which provides operators with real-time details about delays on the track - fuelled a 9 per cent increase in software revenues. Consultancy sales also rose strongly, reflecting work with bidders for the East Anglia franchise. The upshot was higher turnover in the rail business. It also secured a second US partner to help drum up demand for remote monitoring technology among major freight railroads and passenger transit operators across the pond.
Brisk trading drove organic sales up 6 per cent in the key traffic and data services business. Management doubled down on growth there by investing in mobile analytics firm Citi Logik and snapping up SEP, which helps event organisers to plan and manage traffic. The group also acquired Ontrac, a developer of workflow and information-sharing software.
Broker Investec expects adjusted pre-tax profits of £6.8m in the year to July, giving EPS of 20.6p (2015: £5.6m and 17.6p).
| TRACSIS (TRCS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 503p | MARKET VALUE: | £138m | |
| TOUCH: | 495-510p | 12-MONTH HIGH: | 568p | LOW: 365p |
| DIVIDEND YIELD: | 0.2% | PE RATIO: | 36 | |
| NET ASSET VALUE: | 94p* | NET CASH: | £8.0m | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 11.1 | 2.5 | 7.8 | 0.4 |
| 2016 | 11.9 | 2.5 | 7.8 | 0.5 |
| % change | +7 | -1 | - | +25 |
Ex-div: 7 Apr Payment: 22 Apr *Includes intangible assets of £30.2m, or 110p a share | ||||
