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Tracsis warns over impact of coronavirus as UK events are cancelled and travel is restricted

Part of its business comes from "highly recurring" sales but its traffic and data businesses will be hit as major outdoor summer events are cancelled or postponed.

Tracsis - Tracsis warns of business impact of coronavirus as UK events are cancelled and travel is restricted

Tracsis Plc (LON:TRCS) has told investors it is not possible to quantify the impact that the Covid-19 coronavirus pandemic, or what the impact will be on expectations for financial year.

The company, which provides data services for transport industries, said that its rail technology & services division is expected to have resilience as most income comes from highly recurring product sales and it will continue to focus on the delivery of large multi-year client contracts.

Tracsis noted, however, that its traffic & data services division will be impacted by the virus, particularly its events businesses which generate a significant amount of revenue for major UK outdoor events which are being either cancelled or postponed.

“We expect further events to be cancelled or postponed in due course,” the company said.

It added: “We are attempting to mitigate the impact as much as possible through reduced casual labour costs and other actions that the business can take to offset this.”

Tracsis noted that it expects traffic data collection and passenger analytics activities will be disrupted as road traffic and rail activity will be heavily reduced and won’t be representative.

Ahead of an interim results statement due 2 April, the company said it is “a resilient business with substantial cash balances maintained and strong cash flow.”

Quick facts: Tracsis

Price: 586 GBX

AIM:TRCS
Market: AIM
Market Cap: £170.76 m
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