- Structural growth driven by net zero carbon initiatives
- Government funding supports a fast-growing order book
- Scaleable SaaS business model.
To reduce carbon emissions and meet its 2050 net zero carbon goal, the UK government has committed substantial financial support to making public transport the de-facto choice for passengers. The backdrop is incredibly positive for one leading 'intelligent transport systems' provider that has been winning a raft of contracts from a roll-call of blue-chip transport operators and local authorities. It has also made an astute acquisition that is bolstering growth, a factor that is simply not reflected in the shares, which are trading on a cash-adjusted price/earnings (PE) ratio of 7.8, half the rating of rivals.
Analysts have good reason to expect another year of robust growth as the company works extensively with local and combined authorities, Network Rail and many of the largest multinational transport operators. In the past four years, the group has invested over £5mn in research and development, enabling it to design and supply powerful innovative solutions for customers' complex requirements and meet the demands of modern public transport. With an internet of things (IoT) approach and field-proven reliable engineering, the business offers flexible, scaleable products and services that integrate with clients’ existing technology while preparing for future advancements.
