Tracsis : Audited results for the year ended 31 July 2023

Financial Highlights:

• Strong revenue growth across both Divisions

  • Rail Technology & Services: up 26% to £37.9m (2022: £29.9m)

  • Data, Analytics, Consultancy & Events: up 14% to £44.1m (2022: £38.8m)

  • Rail Technology & Services annual recurring and repeat revenue increased 9% to £23.1m (2022: £21.1m)

• 10% Group organic revenue growth

• Adjusted EBITDA* margin reflects c.£1m investment in enhancing capabilities and integrating the Group's activities

• £9.6m cash outflows for contingent and deferred acquisition considerations; all material earn-outs now paid

• Healthy cash generation and strong debt-free balance sheet to invest in further growth

• Continuation of progressive dividend policy. Proposed final dividend of 1.2p per share, with total dividend of 2.2p per share (2022: 2.0p)

Operational and Strategic Highlights:

• Continued growth in rail technology software licence usage and annual recurring revenue

  • Delivery of three large multi-year SaaS contracts

  • Record demand for Remote Condition Monitoring solutions

  • Won two new Pay As You Go ("PAYG") smart ticketing technology contracts

• Strong contribution from Rail Technology North America with fast-growing pipeline of opportunities

• High activity levels in Data, Analytics, Consultancy & Events, including benefit from new contract wins

• Further progress made to simplify our organisational structure based around common operating models

Current Trading and Outlook:

• The Board anticipates that FY24 performance will be in line with market expectations

  • Continued strong organic growth in Rail Technology & Services software revenue; Data, Analytics, Consultancy & Events financial performance at similar level to FY23

  • FY24 growth is likely to be weighted towards H2, reflecting delivery timelines and transition to SaaS for new contract wins in North America

  • New opportunities currently being contracted for PAYG smart ticketing and delay repay solutions

• Well positioned to deliver future growth

  • Digital transformation remains integral to rail industry's future, and we are seeing strong pipeline growth in all rail markets

  • Network Rail CP7 funding of £43.1bn confirmed with a focus on improving train performance for freight and passengers

  • The 2023 Kings Speech has confirmed the government's intent via a draft rail reform bill for Great British Railways to be established to serve as a single point of accountability for the performance of the railway alongside a commitment to roll-out PAYG ticketing across the UK

• Actions to complete the transformation of our operating model are underway, creating a scalable platform for accelerated growth

Chris Barnes, Chief Executive Officer, commented:

"This has been a year of significant financial and operational progress for Tracsis.

We have delivered strong organic and earnings-accretive acquisitive growth, have completed the implementation of several large, complex enterprise software contracts, and have made further progress in integrating the Group's activities and enhancing our capabilities.

The performance of our North American rail business has been particularly pleasing alongside the strong performance of all businesses within the Data, Analytics, Consultancy and Events Division.

Q1 trading has started in line with expectations, and the Group remains well positioned to deliver further growth in the coming year. We have a strong orderbook and a fast growing opportunity pipeline across both Divisions. We expect FY24 growth to be weighted towards H2 given the impact uncertainty in UK rail has had on delivery timescales and the impact an expected SaaS transition will have on the phasing of rail revenues in North America.

Digital transformation will continue to play a significant role in the rail industry's transition to a data-driven, customer-focused, safety-critical future. The breadth of Tracsis' product offering and leading digital end-to-end solutions has a clear alignment to the growing needs of the rail industry and increased demands from a customer experience perspective. We are well placed to help the industry to increase passenger revenues whilst also delivering operational performance improvements and efficiency savings.

We remain committed to implementing our overall strategic growth and investment plans, and will continue to pursue both organic and acquisitive growth supported by a strong balance sheet."

Presentation and Overview videos

Tracsis is hosting an online presentation open to all investors on Friday 17 November 2023 at 1.00pm UK time. Anyone wishing to connect should register here:https://bit.ly/TRCS_FY_webinar

A video overview of the results featuring CEO Chris Barnes and CFO Andy Kelly is available to view here:https://bit.ly/TRCS_FY23_overview

Demonstration videos of the Group's Rail Technology UK products are available to view here:Rail Technology Product Demonstration for Investors | Tracsis

Enquiries

Tracsis plc

Tel: [phone]

Chris Barnes (CEO)

Andy Kelly (CFO)

Cavendish Capital Markets Limited (NOMAD & Broker)

Tel: [phone]

Jonny Franklin-Adams/Giles Balleny/Charlie Beeson (Corporate Finance)

Andrew Burdis/Sunila de Silva (Corporate Broking)

Alma Strategic Communications (Financial PR)

Tel: [phone]

David Ison/Rebecca Sanders-Hewett/Joe Pederzolli

[e-mail]