Tracsis PLC (LON:TRCS) shares jumped in early trading Thursday after securing what it said was a “significant contract win” with a major train owning group for its TRACS Enterprise product.
The public transport consultancy and technology firm said the five-year framework agreement covers all of the operator’s individual train operating companies (TOCs) within the UK plus other franchises won by the group in the future.
READ: Tracsis jumps as full-year earnings expected to be ahead of expectations
Tracsis added that the potential value of the agreement was expected to be “multi-million pounds”, however, the ‘call off’ nature of the contract (which allows the buyer discretion to ask the seller to supply goods) meant “the number of modules used and the specific timing of implementation (and therefore revenue) is difficult to forecast with certainty.”
Despite this, the firm said the contract was “a key win” that would lead to “significant recurring revenue opportunities”.
The sentiment was echoed by analysts at City broker FinnCap, who maintained their 725p target price on the stock but did not alter forecasts due to the contracts 'call off' nature.
Shares were up 2.5% at 610p.
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