Tracsis (TRCS) Investor update summary

Strategic transformation and acquisitions

• Completed acquisition of Mistral Data for £48 million, enhancing recurring revenue and margins.

• Disposed of the events business to sharpen focus on software and technology markets.

• Implemented the One Tracsis operating model, aligning the group under a unified structure.

• Acquired Vesputi, strengthening presence in European transport technology markets.

• Now operates two divisions: Rail Technology & Services and Data, Analytics, Consultancy.

Financial and operational impact

• Mistral Data delivers 30% adjusted EBITDA margins and 86% recurring revenue.

• Mistral's ARR grew 19% to £11.4 million in FY 2026, representing 86% of total revenue.

• Enlarged group’s recurring revenue as a proportion of sales rises from 28% to over 45%.

• Rail Technology & Services now accounts for 70% of the business, with EBITDA margins improving to ~20%.

• Pro forma leverage expected to reduce from 1.5x to 1x by end of 2027 through strong cash generation.

Market positioning and growth opportunities

• Combined group serves 22 of the UK’s 24 train operating companies, holding a 22% share of a £185m core market.

• Significant cross-sell opportunities identified between Mistral and existing customers.

• Mistral’s cloud-native platform accelerates SaaS transition and international expansion.

• Market remains fragmented, with Tracsis positioned between niche specialists and large incumbents.

• Barriers to entry include long procurement cycles and deep operational integration.