Rail and events software and services provider Tracsis (LSE: TRCS) continues to grow its core rail software business and the data and events division bounced back last year.
Tracsis is starting to win contracts for TRACS Enterprise its overall rail operating efficiency system. Even if a rail company used all the individual software supplied by Tracsis, the TRAC Enterprise revenues will be significantly higher. The first user went live in July and five other passenger and freight rail companies will go live over the next 18 months. This will further boost recurring revenues, which were £34.3m last year.
In the year to July 2022, revenues improved from £50.2m to £68.7m, while underlying pre-tax profit improved £11.3m to £12.3m. The total dividend is 2p a share, having restarted dividends at the interim stage.
Rail technology and services increased revenues by 13%, which includes an initial contribution from RailComm in the US. Remote condition monitoring sales were lower because of strong comparisons.
Data, analytics, consultancy and events revenues jumped by 63%, while organic growth was 51%. The profit contribution from the division increased even though there was no government assistance.
The cash pile fell to £17.2m due to acquisition costs. Net cash could improve to £19m this year. This provides further funding for acquisitions, which are likely in the medium-term.
finnCap forecasts 2022-23 pre-tax profit £14.2m. The share price slipped 13p to 937p, which is 25 times prospective earnings.
