20th Nov 2024 11:52
(Alliance News) - Tracsis PLC on Wednesday reported a profit dive due to the timing of the UK pre-general election restrictions in a "disappointing overall result".
Tracsis is a Leeds, England-based provider of services and analytics for the rail, traffic data and transport scheduling industries.
Pretax profit fell to GBP1.0 million in the financial year to the end of July, down 86% year-on-year from GBP7.1 million.
Revenue was also down 1.2% to GBP81.0 million from GBP82.0 million.
Shares in Tracsis fell 7.2% to 617.00 pence in London on late Wednesday morning.
Tracsis cited pre-election activity restrictions that limited the company's trading in the final two months of the financial year by impacting central government, local authority and train operating company decision making and spending.
Profit was also impacted by GBP3.0 million of "exceptional costs" related to changes to the company's operating model including headcount reductions and technology investment.
The company has recommended a final dividend of 1.3 pence per share, bringing the total dividend for the year to 2.4p per share, up 9.1% from 2.2p last year.
Tracsis said they are "well positioned to deliver long-term scalable growth" and have secured contract renewals for next year. The company said some variability in UK customer activity has persisted in the first quarter of the new year and anticipates this continuing in the first half.
Chief Executive Officer Chris Barnes said: "Despite our financial results for FY24 being impacted by the timing of the UK general election and lower yard automation conversion in North America, we have made significant progress over the past 12 months in transforming our operating model and laying the foundations for our future growth.
"The UK rail industry remains in a period of transition as the new government prepares to provide further detail on its strategic vision for the railway. Tracsis' products and services are well placed to support this and we look forward to the legislation relating to Great British Railways that is expected in the coming months," he added.
By Michael Hennessey, Alliance News reporter
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