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Tracsis

June 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • TRCS
  • Price:
  • 310p
Tracsis has acquired Manchester-based Datasys, a supplier of rail management software systems that enable train operators to capture, report and analyse delays. Its client base includes all of the major transport owning groups such as First, Go-Ahead, Stagecoach, etc. Like Tracsis existing software arm, the vast majority of Datasy revenue comes from long term recurring software rental and last year it had sales of £2.3m and recorded an operating profit of £0.55m. Tracsis is paying £4.5m for the business, which comes with cash of £1.3m - so 5.8x operating profit - and is eps enhancing from day one. Separately, Tracsiss subsidiary, Sky High, has   been selected to deliver a significant traffic data collection project through ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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