Tracsis (TRCS) H1 2025 earnings summary

Executive summary

• H1 FY25 financial performance was below expectations due to UK rail funding delays, a major customer cyber-attack, and inflationary cost pressures, but recurring software revenues grew 7% and transactional revenues 18%, supported by key product deployments and international diversification.

• Revenue for H1 FY25 was £36.3m, down 1% year-over-year, but up 2% on a like-for-like basis excluding discontinued consultancy activities.

• Statutory loss before tax widened to £0.7m, with basic loss per share at 1.5p.

• A £3 million share buyback was launched, and the company maintains a strong cash position with no debt.

• Strategic focus remains on growing recurring and transactional software revenues, international diversification, and investment in R&D and acquisitions.

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% (down 5 pts year-over-year).

• Adjusted diluted EPS was 7.7p, down 25% year-over-year.

• Interim dividend increased 9% to 1.2p per share; cash position at period end was £22.1m, up £5.3m year-over-year.

• Free cash flow rose to £2.3m, aided by working capital improvements and lower capex.

• Approximately £1.5 million adverse EBITDA impact from CP7 funding and a customer cyber attack.

Outlook and guidance

• H2 performance expected to improve, underpinned by a strong order book, new contract wins, and seasonality.

• FY25 adjusted EBITDA guidance set at £12.5m–£13.5m, with no material change in CP7 funding or major new contract wins assumed.

• Near-term headwinds from funding and procurement delays, UK rail reform, and US tariffs expected to persist through H2 FY25 and into FY26.