Highlights

  • Tracsis' revenue in FY24 declined by 1.2% YoY, reaching GBP 81.00 million.
  • The UK General Election impacted Tracsis' revenue by approximately GBP 2 million.
  • Adjusted EBITDA decreased by 20% YoY to GBP 12.80 million in FY24.

Tracsis PLC (LSE:TRCS), listed on the FTSE AIM 100 Index, specialises in transport technology, offering software, hardware, data analytics, and GIS solutions. Its divisions include rail technology & services and data, analytics, consultancy & events, catering to the transport sector.

In the financial year 2024 (FY24), Tracsis experienced a slight decline in revenue, dropping by 1.2% to GBP 81.00 million compared to GBP 82.00 million in FY23. The decrease was mainly attributed to the UK General Election, which impacted revenue by approximately GBP 2 million. Additionally, GBP 4 million of non-recurring revenue from the previous year, including GBP 2 million from perpetual licenses and GBP 2 million from Data Analytics/GIS contracts, did not repeat.

In FY24, adjusted EBITDA saw a decline of 20.0% to GBP 12.80 million from GBP 16.00 million in FY23. This drop was driven by reduced overall revenue, the non-repeat of high-margin perpetual license revenue, and investments in enhancing capabilities. Additionally, a margin decrease in the Transport Consultancy business, which has since been restructured, contributed to the decline.

Free cash flow also decreased by 32.5% to GBP 5.40 million in FY24, influenced by GBP 2.3 million in exceptional transformation costs. However, after adjustments, free cash flow remained stable due to efficient working capital management and lower tax payments.

Recent Business Update

On November 6, 2024, Tracsis announced that its subsidiary, iBlocks Limited, had been selected as the Preferred Bidder by Rail Settlement Plan Limited (operating as Rail Delivery Group) for the procurement of a Pay As You Go Tap Converter system. This system will provide consumers with a 'best fare' guarantee, ensuring they receive the most cost-effective travel options.

Company Outlook

Tracsis expects higher activity levels after the UK General Election, though there may be short-term fluctuations in customer activity. Network Rail funding pressures could affect hardware activities. 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 and is well-positioned for long-term growth, including potential mergers and acquisitions.

Top 10 Shareholders:

The top 10 shareholders of TRCS account for approximately 48.51% of total shares. Investec Wealth & Investment Limited holds the largest stake at about 8.69%, followed by Charles Stanley & Co. Limited with around 7.95%, as shown below.

Stock Performance

The stock has dropped by approximately 4.90% in the past month and has decreased by around 29.99% over the last six months. It reached a 52-week low of GBX 481.00 and a high of GBX 972.00, currently trading below the average range. As of 06 Jan 2024, its closing price is 504.00.

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 06 January 2025. The reference data in this report has been partly sourced from EODHD/Others.