Transport technology provider Tracsis has reported a dip in revenue caused by the general election, but said that disruptions have now subsided and that it has returned to normal operations.
The AIM-listed firm expected revenue of £81m in the year ended 31 July 2024, down by just £1m from 2023.
It expected adjusted earnings before interest, tax, depreciataion and amortization (EBITDA) at £13m, down from £16m in 2023.
The dip was largely due to a tumultuous two months leading up to the general election, Tracsis said.
Earlier this year, the company suffered significant disruption to its business after a freeze in central government decision-making in May and June, it said. It subsequently cut its guidance for the year from £84m-85.9m to £80m-82m.
Tracsis’ technology is used for train timetabling, rail safety and road traffic management.
However, the company has since “seen activity returning to normal levels”, and “expect this to continue through the year,” it said.
Its objectives are “well-aligned” with the current government’s, the company added, particularly with regards to rail nationalisation, smart ticketing, and improving service efficiency.
The group reported double digit organic revenue growth from rail technology and services, as well as an increase in rail technology licence usage and annual recurring revenue.
The group’s pipeline of software opportunities in the UK and North America continued to progress, it said, and estimated this pipeline has more than doubled in size during the 12 months ended 31 July 2024.
Chris Barnes, chief executive Officer of Tracsis, said: “With the disruption caused by the timing of the UK General Election now behind us, we have continued to make good progress towards our strategic objectives in the year.
“The business remains well placed, with all signs suggesting that the UK rail industry’s transition to a data-driven, customer-focused, safety-critical future will continue under the new government.
We are committed to our strategy to deliver long-term value for all our stakeholders through the continued pursuit of both organic and acquisitive growth, supported by a strong balance sheet and healthy cash generation, and look to the future with confidence.”