Leeds-based transport software firm Tracsis expects group revenues to be down from £49.2m to £48m for the year ended July 31st – but says the results are better than expected.
Covid-19 has mainly affected the company’s Traffic & Data Services division.
“Our Rail Technology & Services division has continued to trade very well throughout the pandemic,” the company said. “The performance of this part of the group is underpinned by high levels of recurring software revenue.
“In addition, our remote Condition Monitoring business has traded very strongly, as have all of our software businesses which continue to deliver a number of major multi-year contracts.
“iBlocks, which was acquired in March 2020, has traded well since joining the Group, and integration is ongoing and progressing well. The business continues to pursue a number of exciting opportunities in the smart ticketing space, which could be a major growth opportunity.
“Despite the impact that Covid-19 has had on clients cancelling and postponing projects within the Traffic & Data Services division we have continued to secure new work during the pandemic, with the most notable sources of revenue being the continued strong performance of Compass Informatics and the delivery of a major contract within our Traffic Data business.
“The impact of the reduced revenue on profitability has been mitigated to an extent by not requiring casual labour at major events that have not taken place, plus other actions that have been proactively taken to quickly reduce the fixed cost base across this part of the group.”
