Business
Acquisition and Pre-close trading update
Acquisition and Pre-close trading update.
About this update from Tracsis Plc
[{"type":"text","content":"\n \n TRACSIS PLC \n\n (\"Tracsis\" or \"the Company\") \n\n Acquisition of Peeping Limited \n\n Pre-close Trading update for the year ended 31 July 2009 \n\nTracsis plc (AIM: TRCS), a provider of operational planning software and\nconsultancy services for the transport industries, is pleased to announce that\non 24 July 2009 (\"Completion\") it entered into an agreement pursuant to which\nit acquired the entire issued share capital of Peeping Limited (\"Peeping\"), a\ncompany which provides research based services to train operating companies.\n\nACQUISITION HIGHLIGHTS\n\n * Peeping provides research based services to train operating companies\n including station footfall assessment and rail related surveys.\n \n * Peeping generated revenue of £432,000 during the year ended April 2009\n resulting in EBITDA of £153,000 (there were exceptional one-off costs of \n £35,700 relating to this transaction) and had net assets of £240,896 at 5\n April 2009.\n \n * The directors of Tracsis consider that Peeping has strong synergies with\n Tracsis and will strengthen the Company's market position.\n \n * Initial consideration of up to £260,000 payable in cash and the issue of\n 172,744 ordinary shares of 0.4p each subject to an adjustment mechanism\n depending on the net assets of Peeping on completion.\n \n * Subject to agreed financial targets, deferred consideration of up to £\n 225,000 of which 70 per cent will be satisfied in cash and 30 per cent\n satisfied by the issue of new ordinary shares in Tracsis.\n \nTRACSIS TRADING UPDATE\n\nThe directors of Tracsis (\"Directors\") are also pleased to provide the\nfollowing trading update to shareholders prior to the Company's financial year\nend.\n\nIn spite of the recession at large the Company has continued to grow profitably\nin line with plan and has achieved all strategic and operational goals over the\npast 12 months, not least delivering substantial growth in both profits and\nrevenue both organically and through acquisition. The Directors believe that\nthe transport markets have been, and are likely to continue to be, under\nsubstantial pressure to find ever more innovative ways of increasing\nperformance whilst at the same time reducing underlying inefficiency and costs.\nGiven this environment, the Directors of Tracsis believe the Company remains\nideally positioned to take ...