The boss of Tracsis, the Leeds-headquartered transport software business, has said he is “pleased with the first half performance” despite the hit from COVID.
For the six month to 31 January 2021, the company reported a decreased in revenue from £26.4 million to £22.2 million.
The company said that growth in its rail technology and services division was offset by lower sales in its events and traffic data businesses. This, it added, was expected owing to COVID restrictions on end markets.
However, despite the dip in revenue, its adjusted EBITDA of £5.4 million was only £200,000 lower than the prior year. The company said that his reflected the positive impact of cost reduction actions taken in response to the pandemic.
Moreover, the company has claimed through the Coronavirus Job Retention Scheme in respect of furloughed staff in the period.
Chief Executive Chris Barnes said: “I am pleased with the first half performance which was in line with our expectations and I’m encouraged by the trading momentum in the business as we move through the third quarter.
“The entire Tracsis team has done an outstanding job over the past 12 months in protecting jobs and employee wellbeing, in identifying and winning new business and in robustly responding to the challenges linked to COVID-19.
“We have a significant pipeline of large multi-year opportunities across our rail technology and services division in both UK and international markets, and in our data analytics/GIS business unit.
“In addition, we are now starting to see an increase in new business enquiries across those businesses that have been hardest hit by the Covid pandemic and this is driving increased confidence around future growth prospects.”
He added: “We continue to focus on integration and consolidation activities which alongside the launch of a new group-wide Tracsis brand will increase the opportunities for R&D collaboration and cross selling.
“We remain committed to pursuing organic and acquisitive growth supported by a strong balance sheet.”