19th Aug 2020 09:51
(Alliance News) - Tracsis PLC on Wednesday said it expects earnings for the financial year just ended to be down on last year's due to the effects of Covid-19 on the transport industry.
The provider of software, hardware and services for transport industries expects its adjusted earnings before interest, tax, depreciation and amortisation for the financial year ended July 31 to be down from last year's GBP10.5 million. Ebita margin is expected to be about 20%, versus 21% a year ago.
The majority of the Tracsis' Ebitda was generated from its Rail Technology & Services division, which was largely spared from the impact of Covid-19.
Tracsis said: "Our Rail Technology & Services division has continued to trade very well throughout the pandemic. 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."
The company expects total group revenue to be largely stable, down just 2.4% to GBP48.0 million from GBP49.2 million a year prior. This was despite an impact of about GBP10 million on revenue, particularly in the Traffic & Data Services division. The revenue impact from the health crisis was much less than originally feared, the company said.
Tracsis said that it aims to be in a position to provide further guidance on the outlook for 2021 but noted that there is still uncertainty across the transport sector.
Tracsis said: "The board remains confident that the group is well positioned to navigate through this period of uncertainty whilst continuing to pursue and invest in future growth opportunities."
The company's full-year results will be published in November, with the exact date to be released in due course.
Tracsis shares were up 12% to 642.60 pence each on Wednesday morning in London.
By Greg Roxburgh; [email protected]
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