Market's view on Tracsis
Published on April 2024
- Tracsis has a robust financial performance, with strong growth in revenue and EBITDA, and maintains a strong cash balance allowing for further investment in growth.
- The company has experienced a consistent rise in its share price due to its niche market strategy and historical performance, rising over 2,000% since its flotation.
- Tracsis has been successful in integrating acquisitions, maintaining a debt-free status while reporting increased revenue and profits.
- The transition to SaaS is highlighted as a positive long-term strategy, despite short-term financial pressures.
- There are concerns about the company’s share performance potentially being stagnant unless future plans for the second half of the year are optimistic.
- The implementation of a new organisational structure and operating model includes headcount reductions and the centralisation of services, which could impact the entrepreneurial culture and slow decision-making processes.
- Tracsis is recognised for its valuable contributions to the Great British Railways initiative, enhancing its reputation within the industry.
- The company is advised to utilise its strong balance sheet more assertively for potential acquisitions to bolster growth.
- There is a discrepancy noted in financial communications, with unexpected costs mentioned despite previous assurances of settled acquisition obligations.