Transport firm on track for strong second half
The Leeds-based firm reported a 19 per cent increase in first half revenues to £14.3m, but adjusted pre-tax profits from continuing operations stayed flat at £3.2m.
The group announced a lower pre-tax profit of £1.5m from £2.5m following exceptional costs relating to recent acquisitions and the disposal of its Australian operation. In addition the seasonality of the acquired businesses will have an impact, with recent acquisition SEP heavily weighted to the summer months.
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Hide AdJohn McArthur, CEO of Tracsis, said: “We see continuing growth in transport markets, in particular the need for rail companies to look for efficiencies. Underlying organic growth is coupled with a really good M&A pipeline.”
The firm said it is on track to deliver full year earnings in line with expectations.
The group had a busy first half with positive trading across the group and it completed the acquisitions of Ontrac, SEP and made a strategic investment in Citi Logik.
Analyst Roger Phillips at Investec said: “Interims incorporate two acquisitions, one strategic investment and one disposal, but underlying performance shows solid organic growth.
“Tracsis remains a key small-cap sector pick for us.”