Tracsis Remains On Track For Growth In FY26

Tracsis, the transport technology firm, released a trading update for the year ended July 31, with the numbers largely in line with its revised guidance. Despite persistent market challenges, the company's strategic focus on recurring revenue streams and key contract deliveries has underpinned its financial stability.

The company's share price is up 2.83% today at 370p, remaining 27.4% lower than where it began 2025.

Group revenue is anticipated to be approximately £82.0 million, a slight increase from £81.0 million in 2024. Adjusted EBITDA is expected to reach around £12.6 million, marginally lower than the £12.8 million reported in the previous year. These figures align with the guidance provided in the interim results on April 24, 2025.

Tracsis's year-end cash position stood at a healthy £23.4 million, up from £19.8 million in 2024. This reflects strong cash generation capabilities and provides the company with the financial flexibility to pursue further investments in its technology base, organic growth initiatives, and strategic acquisitions. The company also completed its £3.0 million share buyback program during the second half of the year, demonstrating the Board’s confidence in the company's long-term prospects.

The company's improved H2 trading performance, in the face of market headwinds, was driven by growing recurring software license and consumer-driven transactional revenues. The delivery of a substantial Rail Technology & Services software development orderbook, along with seasonal activity in Data, Analytics, Consultancy & Events, also contributed to the positive results.

Tracsis has made significant commercial progress, including being selected by Rail Delivery Group as one of four participants in the Digital Pay-As-You-Go (DPAYG) ticketing trials.

These trials, expected to commence between September and November 2025 across the Northern and East Midlands railway networks, will run for nine months. This provides an opportunity for Tracsis to showcase its Hopsta-powered smart ticketing app, already in use as ‘Tap&Pay’ with ScotRail.

The company is also progressing with previously announced multi-year contracts, including the Tap Converter contract with Rail Delivery Group (Customer Experience) and the Network Rail program for RailHub development (Safety & Risk Management).

Tracsis anticipates that the headwinds in the UK Rail market will persist throughout FY26. Network Rail Control Period 7 (“CP7”) funding remains constrained, leading to lower Remote Condition Monitoring (“RCM”) hardware volumes than in previous years.

While Tracsis expects RCM volumes to increase as CP7 progresses, the timing of larger infrastructure investment projects remains uncertain. The renationalisation of Train Operating Companies and the creation of Great British Railways are also extending procurement timelines for the company's Operations & Planning solutions.

Despite these challenges, the Board expects to achieve modest growth in FY26, consistent with current market expectations. This outlook is supported by a large installed base generating significant recurring revenues, a confirmed orderbook for FY26 delivery, activity levels consistent with FY25, and a pipeline of rail technology solutions providing incremental growth opportunities.