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Tracsis rules out cash return as acquisition pipeline bulges
Transport infrastructure technology company Tracsis (TRCS:AIM) is categorically ruling out returning any of its £22.3m cash pile to shareholders.
Instead, chief executive officer John McArthur has told Shares that he wants to put that money to better use by continuing its long-run policy of acquiring value-adding businesses with motivated management.
Tracsis provides a range of technology and services to the rail industry, including remote condition monitoring of tracks, power lines, points and other vital bits of equipment. The other half of the business is aimed at real-time traffic data and analysis tools used by organisations from road planners to large event organisers.
Over the past decade or so Tracsis has bought and integrated more than a dozen businesses, funded by cash generated internally by the business. This is popular with shareholders because it has led to virtually dilution-free value creation over the years.
Since early 2012 the Tracsis share price has more increased more than 10-fold from 56p to the current 615p, and that’s after selling off through much of October as most of the stock market did.
McArthur says there is a bulging pipeline of potential buyout targets although he admits that the exact timing of deals remains unpredictable, although he hopes to complete two by the end of the current financial year to 31 July 2019. (SF)