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Tracsis upbeat statement fails to lift shares

Tracsis, an AIM-listed technology group, delivered a positive update on Wednesday, but the contents fell short of investor expectations.

Tracsis, an AIM-listed technology group, delivered a positive update on Wednesday, but the contents fell short of investor expectations.

The group said trading in the six month period ending January 31st has been buoyant, with revenue set to be in excess of £4.0m (H1 2012: £3.7m).

It is expected that both adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and profit before tax will both be ahead of the same period last year and, as such, trading has been in line with expectations.

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The group also said that the balance sheet has remained "robust", with cash balances in excess of £8.5m and the group remaining debt free.

John McArthur, Chief Executive Officer, said: "The group has produced further growth in the period and is trading in line with expectations at the half year point.

"There is still a lot to be delivered in the months ahead but the Directors remain cautiously optimistic. We will continue to pursue our stated strategy and we feel confident of achieving further growth this year."

An interim dividend will be recommended "in due course", the firm said.

The company continued: "The group looks forward to the outcome of the Brown review which will determine how and when rail franchising activity returns to normal. The directors believe the group remains well positioned for future growth and continues to benefit from an excellent financial position, a diverse product offering, and a great pipeline of acquisition prospects that will stand Tracsis in good stead for the future."

The share price fell 3.38% to 157p by 13:35.

NR

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