26th Feb 2025 12:28
(Alliance News) - Tracsis PLC on Wednesday said the UK rail supply chain was affected by the slow start to Network Rail Control Period 7, known as CP7.
The Leeds, England-based transport technology provider expects to report revenue of GBP36.3 million for the six months to January 31, down 0.8% from GBP36.6 million a year prior.
It would however be 2.3% higher than GBP35.5 million when excluding GBP1.1 million of discontinued revenue during the first half of financial 2024.
The company said a slow start to CP7 continued to affect the UK rail supply chain. CP7 is a delivery plan set out by Network Rail for renewing the mainline railway infrastructure of Great Britain between early April 2024 and late March 2029.
Tracsis said: "While Tracsis' products and services are well aligned with the UK government's strategic plans for the future of UK Rail, a consultation is ongoing which may delay procurement timelines for future contract awards, particularly in Operations & Planning. We have a large installed base of mission-critical solutions with UK train operating companies that drives significant recurring software revenue, and we do not expect this to be impacted by the proposed changes."
Chief Executive Officer Chris Barnes said: "With a strong foundation, a clear strategy and disciplined execution, Tracsis is well-placed to deliver on its long-term strategy despite the localised short-term headwinds. Our focus remains on delivering sustainable growth, expanding our market presence, and creating lasting value for shareholders."
Further, it added that performance in the current financial year ending July 31 will be influenced by pipeline conversions in the UK and North America rail markets, as it expects procurement decisions in the coming weeks.
Tracsis will release half-year results on April 24.
Last week Wednesday, Tracsis said it signed a multi-year deal with Rail Settlement Plan, a division of Rail Delivery Group, to deliver a system that will power pay-as-you-go travel in urban areas across National Rail in the UK. Tracsis had added there is no change to its expectations for the financial year ending July 31 due to the contract win.
Tracsis CEO Barnes said at the time: "The contract represents a major milestone in our smart ticketing technology journey, with the potential to grow into a valuable, long-term partnership over time."
Tracsis shares fell 4.5% to 377.20 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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