Tracsis PLC (LON:TRCS) shares jumped in early trading Tuesday after the firm expected its full-year earnings to come in “ahead of market expectations”.
In a trading update, the AIM-listed public transport consultancy said revenues for the full year had been ahead of market expectations at around £40mln, up from £34.5mln the previous year, with its adjusted profits also expected to be ahead of expectations and above its 2017 figure of £7.7mln.
The firm added that its cash balance had increased to £22mln from £15.4mln last year while also remaining debt free.
Tracsis said the performance had been bolstered by “positive momentum” across all parts of the group, including the acquisition of Travel Compensation Services Limited by its Rail Technology & Services Division and the renewal of a “major multi-year contract” for traffic analysis in its Traffic & Data Services Division.
The group also said it remained “well positioned for further growth” in the new financial year, with its full year results to be announced to the market in November.
In a note to clients, analysts at City broker finnCap upped their target price for the group to 725p from 700p, citing the firm’s strong cash balance which offered “greater acquisition potential on top of greater underlying growth”.
Tracsis shares were up 8.2% at 685p.