Tracsis (AIM:TRCS) PLC, a provider of data services for transport industries and events, said it expects to report revenue close to £50mln for the year to end July thanks to a strong end of year recovery in its Traffic Data and Events business.
The company, which generated revenue of £48.0mln in 2020, also said there had been further organic growth in the Rail Technology and Services Division and in Data Analytics/GIS.
“We anticipate further recovery in activity levels through Q1 of FY 21/22, supported by the recently announced government-backed insurance scheme for the live events sector,” the company said in a trading update.
COVID-19 restrictions had a significant impact on the end markets of its Traffic Data and Events businesses in the first half, while lower rail passenger numbers only had a modest impact on its Rail Technology and Services Division because most of its products and services are derived from the operational requirements of running and maintaining the railway.
The group expects to report an adjusted EBITDA margin in excess of 25%, versus 21.8% in 2020, which includes the positive impact of cost-cutting taken in response to the pandemic.
Cash balances at the end of July were around £25.4mln, versus £17.9mln in 2020, with no COVID-19 deferrals due to be paid.
It plans to release its full-year results in November.