Investors that tend to overlook the junior Aim part of the stock market may not know Tracsis (TRCS:AIM) but it has a firm following among a subset of retail investors and small cap fund managers.
This is a Leeds-based smart transport analytics and infrastructure technology supplier, and it has performed more strongly than analysts expected last year to 31 July 2018, particularly in the second six months.
Revenues for the year were ‘ahead of market expectations at circa £40m,’ the company revealed today, while also confirming beats on the earnings before interest, tax, depreciation and amortisation and adjusted operating profit lines.
Before today’s news analysts at FinnCap (the company’s own broker) had anticipated revenue of £36.15m and adjusted operating profit of £8.2m. Estimates have now been raised across the board and out to 2020, in some cases by as much as 10%.
Little wonder that shares in the company are in demand on Tuesday, the stock rallying more than 8% to 685p. Tracsis is a running Shares Great Idea from February at 515p.
The nuts and bolts of what Tracsis provides is technology tools to help Network Rail and train operators improve performance, cut capacity problems and keep services running. Constant delays to rail services (including recent timetable fiascos) show how in need the industry is of efficiency tools.
The company also provides technology-led insights on pedestrian and road traffic for infrastructure planning or organising large and complex events.
Encouragingly, all parts of the business have been in demand, leaving management upbeat about the year ahead and beyond.
Tracsis remains ‘well positioned for further growth as we enter the new financial year, with a good pipeline of organic sales opportunities, M&A prospects and positive industry growth drivers,’ today’s statement spells out.