Tracsis Q4 revenues impacted by UK general election

13th Jun 2024 08:36

(Sharecast News) - Software group Tracsis said on Thursday that timing of the UK general election had brought about a short-term dip in Q4 trading due to delayed projects and decreased new orders.

Tracsis said the election had affected its rail technology, transport consultancy, and traffic data units as decision-making and spending across the UK transportation sector was put on hold until after the vote.

The AIM-listed group also stated it now expects revenues from its North American pipeline will not be realised within the current financial year.

"Coupled with the one-off financial impact of the UK general election and strong operational gearing within the business, this will have a material effect on the group's FY24 adjusted EBITDA margin," warned Tracsis.

Full-year revenues were now expected to be between £80.0m and £82.0m, while adjusted underlying revenue margins were seen "slightly higher" than the 15.5% delivered in H124 but below consensus market expectations

Despite this, Tracsis remains confident in its long-term growth strategy and financial health, maintaining unchanged revenue and adjusted EBITDA expectations for FY25.

As of 0920 BST, Tracsis shares had slumped 10.61% to 800.0p.

Reporting by Iain Gilbert at Sharecast.com