24 April 2025

 

Tracsis plc

('Tracsis', 'the Company' or 'the Group')

 

Unaudited Interim results for the six months ended 31 January 2025

 

Group fundamentals remain strong despite lower H1 financial performance

 Ongoing growth in annual recurring revenues

 

Tracsis plc (LSE: TRCS), a leading transport technology provider, is pleased to announce its unaudited interim results for the six months ended 31 January 2025.

 

Financial Highlights:

 

Financial Results (£'m)	H1 25	H1 24
Revenue	36.3	36.6	-1%
Adjusted EBITDA *	3.8	5.7	-33%
Adjusted EBITDA * %	10.5%	15.5%	-504bps
Cash	22.1	16.8
Adjusted diluted earnings per share *	7.7p	10.3p	-25%
Statutory Results
Operating loss	(1.1)	(0.3)	-267%
Loss before tax	(0.7)	(0.3)	-133%
Basic loss per share	(1.5p)	(1.6p)	7%
Interim dividend per share	1.2p	1.1p	+9%

 

·      H1 performance impacted by three key headwinds as previously communicated:

1.	Control Period 7 ("CP7") funding shortfalls led to a 57% reduction in UK Remote Condition Monitoring ("RCM") hardware revenues
2.	Cyber-attack at major UK transport authority left it unable to place any contract work for four months, resulting in a c.50% reduction in Traffic Data revenues from that customer
3.	Lower profitability in Traffic Data and Events from inflationary input cost increases; pricing and cost actions underway, with the initial benefits expected in H2 FY25

 

·      Revenues up 2% (£0.7m) excluding H1 FY24 Transport Consultancy revenue no longer pursued¹

o	Rail Technology & Services revenue up 2% (£0.3m) despite CP7 headwinds; growth across UK product categories apart from RCM
o	Data, Analytics, Consultancy & Events like-for-like revenue1 up 2% (£0.4m)

 

·      Adjusted EBITDA impacted by:

o	c.£0.6m additional contribution from growth in Rail Technology & Services (ex-CP7 headwind)
o	c.£1.5m reduction from CP7 headwind and customer cyber-attack impact
o	c.£1.0m reduction from Traffic Data and Events

 

·      Healthy cash generation and strong balance sheet to invest in growth

 

·      £3m share buyback programme launching later today and progressive dividend policy maintained

 

Strategic Highlights:

 

·      Ongoing growth in recurring software revenues:

o	Rail Technology & Services recurring licence revenue2 up 7% to £10.0m
o	Consumer-driven Pay-As-You-Go ("PAYG") and delay repay transactional revenue3 up 18% to £2.0m

 

·      Key Rail Technology product deployments driving recurring revenue growth and international diversification:

o        Operations & Planning:

§	First UK intercity TRACS Enterprise deployment completed; first UK light rail deployment completed post period-end
§	First full deployment of Positive Train Control variant of Train Dispatch product with US commuter rail provider completed

o        Customer Experience:

§	Expanded contactless PAYG smart ticketing in South Wales; launched ScotRail PAYG app

o        Safety & Risk Management:

§	RailHub functionality expansion across Network Rail continued

 

·      Multi-year contract wins post period-end support future revenue growth:

o        Customer Experience:

§	Tap Converter contract with Rail Delivery Group to provide the central smart ticketing technology platform enabling PAYG travel in urban areas across UK National Rail

o    Safety & Risk Management:

§	New Network Rail programme for RailHub development through H2 FY25, FY26 and beyond

 

FY25 Outlook:

 

·	UK Rail market uncertainty expected to persist into FY26, with a continued impact on near-term procurement timelines in RCM and Operations and Planning
·	Impact of recently announced US tariffs on procurement activity by rail-served ports, freight operators and industrials in North America is currently unclear
·	Without further material contract wins, the Board expects FY25 adjusted EBITDA to be in the range £12.5m - £13.5m
·	Focus remains on growing recurring software licence and consumer-driven transactional revenues whilst continuing to diversify internationally

 

 

Chris Barnes, Chief Executive Officer, commented:

 

"H1 FY25 performance was disappointing, however the factors behind this will not persist long-term and where possible we have taken action to address them. With a confirmed orderbook and seasonally higher activity levels, we are confident that we will deliver an improved financial performance in H2.

 

We are making good progress against our strategic objectives: focusing the business on higher-margin technology solutions; growing annual recurring and transactional revenues; and expanding our international presence. This is supported by strategic M&A and R&D investments alongside the work we have done to transform our operating model. 

 

The long-term demand for data-driven, customer-focused and safety-critical solutions in our end markets remains strong, despite the near-term headwinds. With a clear strategy, robust core of recurring revenue, healthy cash generation and a strong balance sheet, we remain confident in the Group's prospects".

 

Presentation and Overview videos

 

Tracsis is hosting an online presentation open to all investors on Friday 25 April 2025 at 1.00pm UK time. Anyone wishing to connect should register here: https://engageinvestor.news/TRCS_IP25

 

A video overview of the results featuring CEO Chris Barnes and CFO Andy Kelly is available to view here: https://vimeo.com/1078021840/fa025c5c33?share=copy

 

 

Contacts

 

Tracsis plc Chris Barnes, CEO Andy Kelly, CFO	+44 (0)845 125 9162
Berenberg (Nominated Adviser, Corporate Broker & Financial Adviser) Mark Whitmore / Richard Andrews / Mollie D'Arcy Rice James Thompson (QE)	+44 (0)20 3207 7800
Alma Strategic Communications David Ison / Rebecca Sanders-Hewett / Joe Pederzolli	+44 (0)20 3405 0205 tracsis@almastrategic.com

The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 

* In addition to statutory reporting, Tracsis plc reports alternative performance measures ("APMs") which are not defined or specified under the requirements of International Financial Reporting Standards ("IFRS"). These metrics adjust for certain items which impact upon IFRS measures, to aid the user in understanding the activity taking place across the Group's businesses. APMs are used by the Directors and management for performance analysis, planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in note 10.

 

¹ Excluding revenue from Transport Consultancy activities no longer being pursued (H1 FY25: £0.2m, H1 FY24: £1.2m)

² Revenue from software licences where the product has been deployed with the end customer. Includes annual renewals and multi-year contracts

³ Revenue from processing consumer PAYG smart ticketing and delay repay transactions

 

 

  

 

Management Overview

 

Summary

 

 

1.	UK Rail CP7 delays. Slower-than-expected start to CP7 funding reduced UK RCM hardware revenue by 57%, negatively impacting adjusted EBITDA by c.£1m. All other Rail Technology project categories remain unaffected
2.	Cyber-attack on key Traffic Data customer. A four-month pause in orders from this customer reduced adjusted EBITDA by c.£0.5m. With the issue now resolved we expect to see increased revenue from that customer in H2 of FY25
3.	Lower Traffic Data and Events profitability. Due to inflationary input cost increases not fully mitigated through pricing in the period, in part due to the timing of when work is contracted. Actions have been taken to address this and deliver increased profitability, including both operational and pricing changes as well as tighter expenditure control. These will benefit H2 FY25 with the full positive impact expected in FY26

 

 

·	Rail Technology & Services recurring software licence revenue increased by 7% to £10.0m, driven mainly by growth in the UK including a successful TRACS Enterprise deployment and other contract wins
·	Consumer-driven transaction revenue increased by 18% to £2.0m following FY24 PAYG and delay replay deployments
·	Advanced the funded RailHub development roadmap across Network Rail, with additional development programmes awarded post period-end for work commencing in H2 FY25 and continuing into FY26 and beyond
·	Secured significant multi-year Tap Converter contract with the Rail Delivery Group post period-end, embedding Tracsis' ticketing technology as the back-office solution for a UK rollout of PAYG on the National Rail network

 

 

·	Rail Technology & Services has a large installed base with transport operators and infrastructure owners, driving significant recurring software revenue. This is unaffected by near-term market headwinds
·	Post period-end we have secured Rail Technology & Services contract renewals in line with expectations, some of which are multi-year
·	Data, Analytics, Consultancy & Events has a high level of repeat revenue with a consistent seasonal H2 weighting
·	The Group's cash generation remains healthy, underpinned by the base of recurring and repeat revenue across both divisions

 

 

·	First full deployment of a Positive Train Control variant of Train Dispatch solution with a US commuter rail provider completed in H1 of FY25
·	Healthy pipeline of similar contracts with passenger, freight & industrial operators, though progress in securing them has been slower than anticipated and timelines remain subject to evolving customer requirements
·	During the period we also delivered an RCM hardware and software expansion with a US transit customer
·	We have further reduced our cost base in North America during H1 FY25 while maintaining the ability to win and deliver future contracts
·	We remain confident of the long-term opportunity in this market where the industry is actively looking for new participants

 

 

Outlook

 

 

·	We expect RCM hardware volumes to return closer to historical levels as CP7 progresses and as larger infrastructure investment projects are approved by Network Rail, however the timing of this remains uncertain. We do not expect a full recovery within FY25
·	While Tracsis' products and services are well aligned with the UK government's strategic plans for the future of UK Rail, the proposed renationalisation of Train Operating Companies ("TOC's") alongside the creation of Great British Railways is driving extended procurement timelines
·	The impact of US tariffs on procurement activity from rail-served ports, freight operators and industrials in North America is currently unclear
·	The Group's customer experience and safety & risk management activities are unaffected by near-term market headwinds. In both product categories we have been awarded new work post period-end that will deliver revenue through H2 FY25 and beyond

 

 

             ·      Given the continued near term uncertainty in the rail market resulting from the external factors
             outlined above, the Board has reviewed its expectations for FY25 based on a scenario that
             assumes:

 

o	Delivery of the confirmed orderbook of work for the remainder of FY25
o	No material change in CP7 funding in H2 and therefore no increase in RCM hardware volumes versus the H1 FY25 run rate
o	No material new contract wins in the UK TOC market or North America given extended procurement processes
o	For those parts of the Group with short order lead times, run rate activity levels for the remainder of FY25 consistent with historical trends

 

            ·      Applying these assumptions the Board expects to deliver FY25 adjusted EBITDA in the range of
           £12.5m - £13.5m, with an H2 weighting underpinned by the Rail Technology & Services orderbook
           and the seasonality of activity levels in Data, Analytics, Consultancy & Events

 

Growth Strategy

 

·	Strong, enduring market drivers in the UK, North America and other international markets as transport industries modernise and adopt digital solutions that increase efficiency, enhance performance, increase productivity and improve safety
·	Tracsis is well positioned to capitalise on structural trends, with proven technology, deep sector expertise, and a track record as a trusted partner to transport operators, infrastructure providers and government agencies
·	Successful organisational transformation over the past two years has strengthened the Group's resilience, improved revenue quality and enhanced its ability to secure strategic, multi-year opportunities that support long-term growth
·	Focused on scaling the business and growing recurring revenues from software licence and consumer-driven transactions, driving long-term growth and margin accretion

 

 

          1.  Embed a product-focused business model

         ·      Built around a smaller number of scalable application software platforms

         ·      Ongoing portfolio discipline, focused on higher margin transport technology solutions

 

          2.  Growth in recurring revenues

         ·      Focus on growth in software licence revenue and consumer-driven transactions

         ·      Grow and convert the pipeline of software opportunities in UK and North America

 

         3.  Margin accretion and strong cashflow

         ·      Application software product portfolio will accelerate time to market

         ·      Complete the implementation of a global delivery model to remove duplication

 

         4.  Investment in R&D and M&A

         ·      R&D investment to further modularise our products and to access international markets

         ·      Supplement organic growth with M&A focused on high margin recurring revenue growth

 

 

The Group's cash balance, robust fundamentals and healthy cash generation position it well to continue to invest in growth. We will allocate capital in line with our growth strategy, with a clear focus on growing high margin recurring revenues:

 

                1.  Organic Growth

                ·      Capex and working capital to support operational delivery

                ·      R&D investment to further consolidate our product portfolio around core, modular application
                software platforms, and to access international markets 

 

                2.  M&A

                ·      Disciplined criteria focused on recurring revenue growth, earnings accretion and cash generation

                ·      Acquisitions integrated into the Group's global delivery model

                ·      Portfolio discipline to focus on core activities and assets

 

                3.  Returns to Shareholders

                ·      Maintain progressive dividend

                ·      Surplus cash returned to shareholders

 

 

Jill Easterbrook Non-Executive Chair	Chris Barnes Chief Executive Officer
24 April 2025

 

 

Financial Overview

 

Trading Performance

 

Total Group revenue of £36.3m was 1% (£0.3m) lower than in the prior period. After adjusting for non-repeating revenue from the Transport Consultancy activities no longer being pursued as previously announced, revenue on a like-for-like basis¹ was 2% (£0.7m) higher than the prior period. Rail Technology & Services revenue increased by 2% (£0.3m) and Data, Analytics, Consultancy & Events revenue increased by 2% (£0.4m) on a like-for-like basis.

 

Adjusted EBITDA of £3.8m was 33% (£1.9m) lower than in the prior period, with an adjusted EBITDA margin of 10.5% vs 15.5% in H1 FY24. The lower level of profitability was driven by the near-term headwinds.

 

The impact of these headwinds on the Group's profitability was partly offset by healthy profit growth in the Rail Technology & Services Division which is benefiting from actions taken to streamline this business.

 

H1 delivered a statutory loss before tax of £0.7m (H1 FY24: £0.3m). In addition to the £1.9m decrease in adjusted EBITDA described above, this reflects:

 

·	£0.7m non-recurring exceptional cash costs relating to the transformation of the Group's operating model, mainly headcount reductions that were completed after 31 July 2024 for operational reasons (H1 FY24: £1.3m);
·	£1.1m depreciation charge and £2.7m amortisation of intangible assets, both at similar levels to the prior period;
·	£0.3m of share based payment charges (H1 FY24: £0.7m) lower than the prior period due to the timing of awards; and
·	£0.3m net finance income (H1 FY24: <£0.1m) reflecting returns on cash balances.

 

The Group continues to have significant levels of cash and remains debt free. Cash generation remains healthy. At 31 January 2025 the Group's cash balances were £22.1m, which is £5.3m higher than the prior period (H1 FY24: £16.8m) and £2.3m higher than at 31 July 2024.

 

Divisional Performance

 

Rail Technology & Services

 

Modest revenue growth despite near term CP7 headwinds, benefitting from a large installed base of mission-critical solutions with continued progress in long-term drivers of value.

 

Revenue	£16.8m (H1 FY24: £16.5m)	+2%
Recurring Software Licence Revenue 2	£10.0m (H1 FY24: £9.4m)	+7%
Consumer-Driven Transactional Revenue 3	£2.0m (H1 FY24: £1.7m)	+18%
Adjusted EBITDA*	£3.0m (H1 FY24: £3.4m)	-12%
Profit/(loss) before Tax	£0.2m (H1 FY24: (£0.2m))

 

·    Revenue increased by 2% (£0.3m)

o	Rail Technology UK £15.0m +5% (£0.7m) vs H1 FY24. Growth in all product categories except RCM hardware which declined due to previously signposted Network Rail CP7 funding impact. H1 included the benefit from work to deliver the next funded phase of RailHub to expand the functionality of this safety and risk management system.
o	Rail Technology North America £1.8m -18% (-£0.4m) vs H1 FY24. Lower level of project delivery revenue following completion of the Train Dispatch deployment during the period.
o	Orderbook underpins further growth in H2 of FY25. We have an orderbook of work including the benefit from the recent PAYG Tap Converter contract win and the RailHub development programme that leaves us well placed to deliver further revenue growth in H2 of FY25.

 

·    Ongoing growth in recurring software licence revenue and revenue from consumer activity

o	Recurring software licence revenue £10.0m +7% (£0.6m) vs H1 FY24. Growth is mainly in the UK from the Operations and Planning portfolio including the benefit of the H1 FY25 TRACS Enterprise deployment and from other contract wins.
o	Consumer-driven transactional revenue £2.0m +18% (£0.3m) vs H1 FY24. Growth is driven by new customer deployments completed during FY24 as previously announced: two PAYG smart ticketing and one delay repay deployment.

 

·    Adjusted EBITDA decreased by 12% (£0.3m)

o	£1.0m adverse EBITDA impact from lower UK RCM hardware revenue
o	Margin improvement across the rest of the portfolio
o	Further cost out actions taken in North America during the period

 

·    Profit before tax increased by £0.4m

o	£0.6m transformation costs in H1 of FY25 mainly related to headcount reductions in North America
o	Benefit from lower transformation costs and an increased level of interest received on cash balances

 

Data, Analytics, Consultancy & Events

 

Adverse margin impact from Traffic Data & Events. Actions taken to improve profitability with the initial benefits expected during H2 of FY 25

 

Revenue	£19.5m (H1 FY24: £20.1m)	-3%
Like for like Revenue 1	£19.3m (H1 FY24: £18.9m)	+2%
Adjusted EBITDA *	£0.8m (H1 FY24: £2.2m)	-64%
(Loss)/profit before Tax	(£0.7m) (H1 FY24: £0.6m)

 

·    Reported revenue decreased by 3% (-£0.6m)

o

Reflects H1 FY24 revenue from Transport Consultancy activities no longer being pursued. As previously announced, the Group is no longer pursuing certain non software related low margin activities previously delivered through its Transport Consultancy business. These delivered £0.2m revenue in H1 FY25 from completion of the final projects in the orderbook, and £1.2m revenue in H1 FY24

 

 

·    Revenue increased by 2% (£0.4m) on a like-for-like basis

o	Driven by increased activity levels in Events. Activity levels remain high and the business delivered record H1 revenue of £8.5m.
o	One-off headwind from Traffic Data customer cyber-attack. As previously announced, a large Traffic Data customer experienced a cyber-attack during H1 of FY25 and was unable to place work with the Group whilst this was rectified. This issue has now been resolved and we expect to see a recovery in revenue through the remainder of FY25.

 

·    Adjusted EBITDA decreased by 64% (£1.4m)

o

c.£0.5m headwind from cyber-attack suffered by a Traffic Data customer. The one-off headwind described above resulted in adjusted EBITDA for H1 FY25 being c.£0.5m lower than in H1 FY24.

o

Actions taken to improve Traffic Data and Events profitability. There was a significant decrease in gross margin across the Traffic Data and Events businesses during the period, resulting in adjusted EBITDA for H1 FY25 being c.£1.0m lower than in H1 FY24. This was caused by a sharp increase in input costs across the supply chain that was not fully mitigated through pricing, in part due to the timing of when work is contracted. We have taken actions to address this and deliver increased profitability. These include operational changes, pricing, and close control of expenditure. We expect to deliver an increased margin in both businesses during H2 of FY25 with the full benefit of these actions being delivered in FY26.

 

·    Loss before tax of £0.7m is £1.3m lower than the prior period

o	Reflects the lower level of EBITDA contribution partly offset by lower transformation costs. Transformation Costs of £0.2m in H1 FY25 mainly relate to the final headcount reductions from the Group transformation programme.

 

Cash Generation

 

Free cash flow increased to £2.3m (H1 FY24: £1.2m), despite the £1.9m decrease in adjusted EBITDA described above. This included the benefit from favourable working capital movements including the unwind of the large trade receivables balance at 31 July 2024, a lower level of capital expenditure, a lower level of tax paid reflecting the timing of instalments under the UK tax regime, and a higher level of net interest received including the initial benefit from actions taken to centralise cash management activities as part of the Group transformation.

 

The Group is historically more cash generative in the second half of the year, reflecting the timing of licence renewals and the seasonality of certain parts of the Group.

 

Free Cash Flow*

	Unaudited Six months	Unaudited Six months	Audited Year
	Ended	Ended	Ended
	31 January	31 January	31 July
	2025	2024	2024
	£'m	£'m	£'m
Adjusted EBITDA *	3.8	5.7	12.8
Changes in working capital	0.9	(0.3)	(0.5)
Purchase of property, plant and equipment (net of proceeds from disposal)	(0.3)	(0.9)	(1.2)
Lease liability payments (net of lease receivable receipts)	(0.7)	(0.5)	(1.4)
Capitalised development costs	(0.4)	(0.2)	(0.5)
Tax paid	(0.2)	(1.3)	(1.7)
Other 4	0.2	-	0.2
Free cash flow before exceptional items	3.3	2.5	7.7
Cash outflows on exceptional items	(1.0)	(1.3)	(2.3)
Free Cash Flow	2.3	1.2	5.4

* In addition to statutory reporting, Tracsis plc reports alternative performance measures ("APMs") which are not defined or specified under the requirements of International Financial Reporting Standards ("IFRS"). These metrics adjust for certain items which impact upon IFRS measures, to aid the user in understanding the activity taking place across the Group's businesses. APMs are used by the Directors and management for performance analysis, planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in note 10.

 

¹ Excluding revenue from Transport Consultancy activities no longer being pursued (H1 FY25: £0.2m, H1 FY24: £1.2m)

² Revenue from software licences where the product has been deployed with the end customer. Includes annual renewals and multi-year contracts

³ Revenue from processing consumer PAYG smart ticketing and delay repay transactions

⁴ Includes net interest received or paid, profit on disposal of property, plant and equipment, and proceeds from exercise of share options

 

Andy Kelly Chief Financial Officer

24 April 2025

 

 

Tracsis plc - Condensed consolidated interim statement of comprehensive income for the six months ended 31 January 2025

		Unaudited six months ended 31 January		Unaudited six months ended 31 January		Audited year ended 31 July
		2025		2024		2024
	Notes	£000		£000		£000
Revenue	3	36,308		36,582		81,022
Cost of sales		(15,863)		(14,520)		(35,009)
Gross profit		20,445		22,062		46,013
Administrative costs		(21,526)		(22,370)		(45,046)
Adjusted EBITDA 1	3, 10	3,801		5,674		12,759
Depreciation		(1,141)		(1,144)		(2,371)
Amortisation of intangible assets		(2,744)		(2,802)		(5,526)
Other operating income		-		-		7
Share-based payment charges		(276)		(740)		(899)
Operating (loss) / profit before exceptional items		(360)		988		3,970
Exceptional items	4	(721)		(1,296)		(3,003)
Operating (loss) / profit		(1,081)		(308)		967
Net finance income	5	339		40		28
(Loss) / profit before tax		(742)		(268)		995
Taxation		285		(220)		(507)
(Loss) / profit after tax		(457)		(488)		488
Other comprehensive income / (expense)
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences		433		194		(295)
Total comprehensive (expense) / income for the period		(24)		(294)		193
Earnings per ordinary share
Basic	6	(1.51p)		(1.62p)		1.62p
Diluted	6	(1.51p)		(1.62p)		1.59p

 

¹ Earnings before net finance income, tax, depreciation, amortisation, exceptional items, other operating income and share-based payment charges - see note 10.

Tracsis plc - Condensed consolidated interim balance sheet as at 31 January 2025

 

		Unaudited at 31 January		Unaudited at 31 January		Audited at 31 July
		2025		2024		2024
	Notes	£000		£000		£000
Non-current assets
Property, plant and equipment		4,104		5,104		4,992
Intangible assets		50,529		55,242		52,610
Deferred tax assets		1,669		666		1,376
		56,302		61,012		58,978
Current assets
Inventories		1,650		1,461		1,512
Trade and other receivables		13,479		13,605		21,536
Current tax receivables		663		1,609		1,011
Cash and cash equivalents		22,086		16,755		19,773
		37,878		33,430		43,832
Total assets		94,180		94,442		102,810
Non-current liabilities
Lease liabilities		494		794		737
Contingent consideration payable	11	-		145		-
Deferred tax liabilities		6,416		6,909		7,132
		6,910		7,848		7,869
Current liabilities
Lease liabilities		720		1,435		1,123
Trade and other payables		18,362		16,856		25,498
Contingent consideration payable	11	154		-		151
Deferred consideration payable		-		314		-
Current tax liabilities		-		126		-
		19,236		18,731		26,772
Total liabilities		26,146		26,579		34,641
Net assets		68,034		67,863		68,169
Equity attributable to equity holders of the Company
Called up share capital		122		128		121
Share premium		6,542		6,535		6,535
Merger reserve		6,161		6,161		6,161
Retained earnings		54,991		54,765		55,567
Translation reserve		268		324		(165)
Fair value reserve		(50)		(50)		(50)
Total equity		68,034		67,863		68,169

 

 

 

 

Tracsis plc - Consolidated interim statement of changes in equity for the six months ended 31 January 2025

 

Unaudited	Share Capital	Share Premium	Merger Reserve	Retained Earnings	Translation Reserve	Fair Value Reserve	Total
	£000	£000	£000	£000	£000	£000	£000
At 1 August 2023	120	6,535	6,161	54,875	130	(50)	67,771
Loss for the period	-	-	-	(488)	-	-	(488)
Other comprehensive income	-	-	-	-	194	-	194
Total comprehensive loss	-	-	-	(488)	194	-	(294)
Transactions with owners:
Dividends	-	-	-	(362)	-	-	(362)
Share-based payment charges	-	-	-	740	-	-	740
Exercise of share options	8	-	-	-	-	-	8
At 31 January 2024	128	6,535	6,161	54,765	324	(50)	67,863
At 1 February 2024	128	6,535	6,161	54,765	324	(50)	67,863
Profit for the period	-	-	-	976	-	-	976
Other comprehensive expense	-	-	-	-	(489)	-	(489)
Total comprehensive income	-	-	-	976	(489)	-	487
Transactions with owners:
Dividends	-	-	-	(333)	-	-	(333)
Share-based payment charges	-	-	-	159	-	-	159
Exercise of share options	(7)	-	-	-	-	-	(7)
At 31 July 2024	121	6,535	6,161	55,567	(165)	(50)	68,169
At 1 August 2024	121	6,535	6,161	55,567	(165)	(50)	68,169
Loss for the period	-	-	-	(457)	-	-	(457)
Other comprehensive income	-	-	-	-	433	-	433
Total comprehensive loss	-	-	-	(457)	433	-	(24)
Transactions with owners:
Dividends	-	-	-	(395)	-	-	(395)
Share-based payment charges	-	-	-	276	-	-	276
Exercise of share options	1	7	-	-	-	-	8
At 31 January 2025	122	6,542	6,161	54,991	268	(50)	68,034

 

 

 

 

Tracsis plc - Condensed consolidated interim cash flow statement for the six months ended 31 January 2025

		Unaudited six months ended 31 January		Unaudited six months ended 31 January		Audited year ended 31 July
		2025		2024		2024
	Notes	£000		£000		£000
Operating activities
(Loss) / profit for the period		(457)		(488)		488
Net finance income	5	(339)		(40)		(28)
Depreciation		1,141		1,144		2,371
Profit on disposal of property, plant and equipment		-		(16)		(15)
Non-cash exceptional items	4	6		7		274
Other operating income		-		-		(7)
Amortisation of intangible assets		2,744		2,802		5,526
Income tax (credit) / charge		(285)		220		507
Share-based payment charges		276		740		899
Operating cash inflow before changes in working capital		3,086		4,369		10,015
Movement in inventories		(135)		13		(48)
Movement in trade and other receivables		8,265		6,779		(2,394)
Movement in trade and other payables		(7,594)		(7,042)		2,408
Cash generated from operations		3,622		4,119		9,981
Interest received		262		70		171
Income tax paid		(245)		(1,337)		(1,652)
Net cash flow from operating activities		3,639		2,852		8,500
Investing activities
Purchase of property, plant and equipment		(253)		(951)		(1,487)
Proceeds from disposal of property, plant and equipment		-		49		241
Capitalised development costs		(395)		(204)		(462)
Payment of deferred consideration		-		-		(315)
Net cash flow used in investing activities		(648)		(1,106)		(2,023)
Financing activities
Dividends paid	8	-		-		(695)
Proceeds from exercise of share options		8		8		1
Lease liability payments		(684)		(537)		(1,441)
Lease receivable receipts		-		16		32
Net cash flow used in financing activities		(676)		(513)		(2,103)
Net increase in cash and cash equivalents		2,315		1,233		4,374
Exchange adjustments		(2)		215		92
Cash and cash equivalents at the beginning of the period		19,773		15,307		15,307
Cash and cash equivalents at the end of the period		22,086		16,755		19,773

 

Notes to the consolidated interim report for the six months ended 31 January 2025

 

1          Basis of preparation

The unaudited consolidated interim financial information has been prepared under the historical cost convention and in accordance with the recognition and measurement requirements of UK-adopted international accounting standards. There has been no ISRE 2410 accordant review of the consolidated interim financial information by an independent auditor. The condensed consolidated interim financial information does not constitute financial statements within the meaning of Section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for full annual financial statements. It should therefore be read in conjunction with the Group's Annual Report for the year ended 31 July 2024, which has been prepared in accordance with UK-adopted international accounting standards and is available on the Group's investor website.

The accounting policies used in the financial information are consistent with those used in the Group's consolidated financial statements as at and for the year ended 31 July 2024, as detailed on pages 93 to 99 of the Group's Annual Report and Financial Statements for the year ended 31 July 2024, a copy of which is available on the Group's website: https://tracsis.com/investors.

The comparative financial information contained in the condensed consolidated financial information in respect of the year ended 31 July 2024 has been extracted from the 2024 Financial Statements. Those financial statements have been reported on by Grant Thornton UK LLP and delivered to the Registrar of Companies. The report was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at the year ended 31 July 2024.

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, such as expectations of future events and are believed to be reasonable under the circumstances. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended 31 July 2024.

There have been no new accounting standards or changes to existing accounting standards applied for the first time from 1 August 2024 which have a material effect on these interim results. The Group has chosen not to early adopt any new standards or amendments to existing standards or interpretations.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing this interim financial information. The Group is debt free and has substantial cash resources. At 31 January 2025 the Group had net cash and cash equivalents totalling £22.1m. The Board has considered future cash flow requirements taking into account reasonably possible changes in trading financial performance.

The condensed consolidated interim financial information was approved for issue on 23 April 2025.