Why Shares In Tracsis Plc Jumped

Tracsis Plc (LON: TRCS) expects profit and revenue to beat market forecasts.

Mark Stones

Mark Stones (TMFMumbojumbones) joined The Motley Fool in 2014 and initially worked as a writer for Fool.co.uk, before joining the Fool’s analyst programme. Mark earned a BA in English from Loughborough University. Although he spends more time reading annual reports than Russian literature these days, he still appreciates a novelist’s antipathy toward the accepted view, which is a useful attitude when trying to sniff out hidden gems on the stock market. His approach to investing has been largely influenced by the principles of Warren Buffett and Peter Lynch. He also takes a special interest in the work of healthcare companies. Outside of investing, Mark plays guitar, enjoys good writing and has a guilty passion for combat sports.

Published 23 June, 2014 9:40 am BST

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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.