Acquisition boosts Tracsis profits

The University of Leeds spin-out, which is based in the city, also announced record revenues in its audited final year results for the year ending July 31, 2011. Revenue increased to £4.1m, from £2.6m, due to a combination of 14 per cent organic growth, and the acquisition of MPEC Technology, the company said in a statement.

John McArthur, chief executive officer, said: “Tracsis has performed extremely well in the year, achieving record levels of organic revenues and profits, and the contribution of MPEC Technology has also been significant. The MPEC acquisition is Tracsis’s fourth in four years and represents a slight diversification into embedded software, but I believe it still sits well underneath the Tracsis transport umbrella.

“The company’s balance sheet remains debt free and strong, with significant levels of cash in the bank as a result of continued growth and also a successful share placing. Looking ahead, whilst we are cautious about the challenging economic climate, we are excited by the prospects for the enlarged group and are targeting further growth going forwards.”

MPEC Technology represented the fourth acquisition by Tracsis in four years since IPO in 2007. The business has also recently completed an oversubscribed share placing of £1.95m from several institutional investors.

Tracsis won the award for Companies with a turnover up to £10m, sponsored by Yorkshire Bank, at the Yorkshire Post’s Excellence in Business Awards this year.