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Highlights
- Tracsis’ revenue for H1 FY24 was GBP 36.60 million, down 6.63%.
- Adjusted EBITDA dropped by 24% but is expected to stabilize.
- FY24 revenue is forecasted between GBP 80.0 million and GBP 82.0 million.
- The company is exploring M&A prospects to expand its offerings.
Listed on the FTSE AIM 100 index, Tracsis PLC (LSE:TRCS) provides technology and consultancy services, alongside software and hardware, to the transportation and traffic sectors.
In the first half of FY24, the company's revenue reached GBP 36.60 million, marking a 6.63% decrease compared to the prior comparative period. This decline was primarily attributed to the anticipated absence of perpetual rail technology software licenses, which were a significant factor in the first half of 2023. Additionally, adjusted EBITDA fell by 24%, reflecting the impact of investments made in the previous year. However, it is expected that adjusted EBITDA will return to its historical levels by the end of the year, as the effects of these investments begin to stabilize.
Recent Business Update
According to the company's trading update issued on June 13, 2024, Tracsis forecasts revenue for FY24 to range between GBP 80.0 million and GBP 82.0 million. The adjusted EBITDA margin is expected to be slightly above 15.5% for the second half of 2024, though it is anticipated to fall short of analyst expectations. As of May 31, 2024, the company held a net cash of GBP 15.5 million. Revenue and adjusted EBITDA projections for FY25 remain consistent with previous estimates.
Company Outlook
As per the company, Tracsis has experienced a robust beginning to the second half of the year, with significant activity and growth in its Rail Technology pipeline, particularly in North America. The Board anticipates that the performance for FY24 will ally with market expectations. Additionally, the company is actively exploring M&A opportunities to broaden its software and technology offerings and increase recurring revenue.
Top 10 Shareholders
The top 10 shareholders of Tracsis together account for approximately 49.85% of the total shares. Investec Wealth & Investment Limited holds the largest share, with about 9.14%, followed by Charles Stanley & Co. Limited, which has approximately 7.95%. These details are illustrated in the chart below.
Stock Information
Over the past month, TRCS's stock price has increased by approximately 1.39%, and it has fallen by about 29.18% over the last six months. The stock's 52-week range is between a low of GBX 570.00 and a high of GBX 980.00, and it is currently trading below the average of this 52-week high-low range.
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 27 August 2024. The reference data in this report has been partly sourced from EODHD/Others.
