Tracsis (TRCS) H1 2025 Pre Recorded earnings summary

Executive summary

• H1 FY25 financial performance was below expectations due to UK rail funding delays, a major customer cyber-attack, and input cost inflation, but recurring software revenues grew 7% and transactional revenue rose 18% year-over-year.

• Multi-year strategic contract wins, including PAYG Tap Converter, underpin revenue for H2 FY25 and beyond, with long-term growth strategy and international diversification unchanged.

• A £3m share buyback was launched, interim dividend increased 9% to 1.2p per share, and the business maintains a strong cash position with no debt.

• The business remains confident in its long-term strategy and growth prospects, supported by investments in technology and team.

Financial highlights

• H1 2025 revenue was £36.3m, down 1% year-over-year; adjusted EBITDA fell 33% to £3.8m, with margin at 10.5%.

• Like-for-like group revenue (excluding discontinued transport consultancy) grew 2% year-over-year.

• Recurring and transactional revenues totaled £12m in H1.

• Cash at period end was £22.1m, up £2.3m from year-end, with no debt.

• Free cash flow increased to £2.3m from £1.2m, supported by working capital improvements.

Outlook and guidance

• FY25 adjusted EBITDA is forecast between £12.5m and £13.5m, with H2 weighted due to a strong order book and seasonality.

• External headwinds, including UK rail funding, procurement delays, and US tariffs, are expected to persist into FY26.

• Focus remains on growing recurring software and transactional revenues, and international expansion.