2nd Apr 2020 11:46
(Alliance News) - Tracsis PLC on Thursday reported rise in first half earnings but said that it will differ interim dividend due to uncertainty caused by the Covid-19 pandemic.
The stock was trading 4.8% higher at 609.00 pence each on Thursday morning in London.
For the first six months to the end of January, the traffic data & transportation services firm posted revenue of GBPP26.4 million, up 41% from GBP18.8 million posted in the comparative period the year prior. Pretax profit for the period was up by 14% to GBP2.4 million from GBP2.1 million.
The rail software, hosting and consulting divisions accounted for GBP9.6 million of revenue, with acquired business Bellvedi contributing GBP700,000 of that amount. Revenues for Remote Condition Monitoring were GBP2.3 million and revenue from the Traffic & Data Services division were GBP14.5 million, up from GBP8.9 million the year prior.
"We are pleased with the first half performance which was in line with expectations. All of the acquisitions from 2019 performed well, and we were also delighted in March to have completed the iBlocks acquisition which increases our rail technology product portfolio and takes us into exciting new areas of the rail industry," said Chief Executive Chris Barnes.
Tracsis said it will defer payment of the interim dividend, resulting in a saving of around GBP300,000. It added that it will review the decision later in the year.
Looking ahead, the Leeds-based company said the Covid-19 outbreak has hurt its Traffic & Data Services division but assured that it has "substantial" cash balances and remains confident in its long-term prospects.
"Despite the recent Covid-19 crisis, our Rail Technology & Services business currently remains resilient and we are in the final stages of negotiating several large multi-year software and hardware contract opportunities. Our Traffic & Data Services division is however being majorly impacted by Covid-19 and as a result we have taken a series of actions to mitigate the impact on the business as much as possible, with the full year outcome currently under review," Barnes said.
As at the end of January, Tracsis had cash of GBP26.0 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Tracsis