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Highlights

  • Tracsis has secured new UK rail technology contracts, expanding its footprint in the transport sector
  • In FY24, Tracsis faced a slight decline in revenue of 1.2% YoY to GBP 81 million, compared to GBP 82 million in FY23
  • Tracsis anticipates large, multi-year software contracts in FY25

Tracsis PLC (LSE:TRCS) is a software company, specializing in transport technology solutions.

Tracsis has secured new UK rail technology contracts and it has also expanded its software pipeline by 200% across the UK and North America. Key deployments include Train Dispatch in the U.S. and TRACS Enterprise in the UK. Additionally, the company transformed its operating model, creating a scalable platform for high-margin growth.

FY24 Financial Update

In the financial year 2024 (FY24), Tracsis faced a slight decline in revenue, which decreased by 1.2% YoY to GBP 81 million, compared to GBP 82 million in FY23. This decrease can be primarily attributed to the adverse impact of the UK General Election.

Adjusted EBITDA for FY24 dropped significantly by 20.0%, reaching GBP 12.8 million, compared to GBP 16.0 million in FY23. This decline was largely driven by lower overall revenue and the absence of high-margin perpetual license sales.

Recent Business Update

On 29th January 2025, Tracsis announced the expansion of ScotRail's "Tap&Pay" smart ticketing app, which was developed by Tracsis, following a successful six-month pilot. The app allows passengers to enjoy seamless and best-value rail travel without the need for advance ticket purchases. If the expanded service continues to perform well, ScotRail plans to extend the availability of the Tap&Pay app across its entire network, further enhancing the customer experience and streamlining ticketing for passengers.

Company Outlook

As per Tracsis, rising national insurance and wage costs are likely to reduce FY25 EBITDA by GBP 0.5 million. The company anticipates large, multi-year software contracts in FY25. Tracsis is also well-positioned for long-term growth, with potential mergers and acquisitions opportunities on the horizon.

Top 10 Shareholders

The top 10 shareholders of TRCS collectively hold approximately 48.51% of the company’s total shareholdings. The largest shareholder is Investec Wealth & Investment Limited, which owns around 8.69% of the shares. Following closely is Charles Stanley & Co. Limited, holding approximately 7.95% of the shares.

Stock Information

The stock price of TRCS declined by approximately 13.54% in the past month and decreased by 29.66% over the last six months. Its 52-week low and high are GBX 261.00 and GBX 972.00, respectively, with the current price trading below the average of these values. As of 07 February 2025, the stock's closing price is GBX 415.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 07 February 2025. The reference data in this report has been partly sourced from EODHD/Others.