Although we don’t believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.
What: Shares of Tracsis (LSE: TRCS), which provides software and technology-led products for the transportation industry, spiked by 11% to 350p in early trade this morning after announcing that 2014 revenue and profit is likely to be “significantly ahead” of market forecasts.
So what: Tracsis specialises in data capture and its client base includes Arriva, Stagecoach, National Express and Virgin. The group has been buoyed by record levels of investment into UK rail to cope with surging demand. As a result of strong trading, the board is forecasting full-year revenue in excess of £20m.
Now what: Since listing on the AIM in 2007, Tracsis shares have seen gains of over 700% and are presently at an all-time high. The board believes that public transport, particularly rail, is set for “significant” growth in the coming years to meet capacity and performance challenges. “Tracsis is well placed to benefit from this growth,” the chief executive, John McArthur, said. The firm added that the integration of Datasys, which was acquired in May 2014, is proceeding to plan.
