Looking for answers: Mick Lynch, head of the RMT transport union, is calling for better pay and conditions for railway workers
Mick Lynch, head of the RMT transport union is a controversial figure. To his followers, he is a hero. To his opponents, he is a troublemaker. And to many in the rail industry, he is more akin to an ostrich.
Along with fellow union members, Lynch, is calling for better pay and conditions for railway workers, even as Network Rail and the train operators battle with falling passenger numbers, ageing infrastructure and rising costs.
Even before the pandemic, the Government was shelling out more than £4 billion of taxpayers’ cash to keep the industry on track. Today, that figure is almost certainly even higher. Something has to give, so that the network can operate a decent service, without breaking the bank.
Tracsis may have some of the answers, using technology to make rail work better, so trains are more punctual, fares are fairer and journeys are safer.
The company’s customers span every part of the rail industry. For train operators, Tracsis helps with timetabling, providing software that ensures trains and workers are in the right place at the right time so daily rosters are managed efficiently and firms can optimise the use of their rolling stock.
Tracsis has also developed smart-ticketing technology so passengers can tap in and tap out when they go on a journey, rather than paying in advance.
Designed for commuters who no longer travel to the office every day, the service ensures that passengers pay the cheapest fares on a daily or weekly basis.
Already used by several train operators around London, the service is likely to be rolled out to other parts of the country. Tracsis provides train companies with ‘Delay Repay’ technology too, which refunds passengers if their journeys are delayed.
For Network Rail, Tracsis software monitors track lines, level crossings and other essential infrastructure to assess whether everything is up to scratch.
Little grey boxes, discreetly placed along the railways, use sophisticated technology to highlight when something has gone wrong or a piece of kit might need an upgrade, so engineers can fix problems quickly or even prevent them from occurring.
When repairs are needed, Tracsis provides digital tools to help complete projects safely and at speed.
The group also owns a data imagery business so firms can analyse storms, floods and other weather events – and respond faster and more effectively than in the past.
There is a flourishing business in America too, recently acquired and offering significant potential for expansion.
Midas recommended Tracsis in 2014 when the shares were £3.65. The shares have soared to £9.80 since then and there should be more to come.
Historically, the business grew largely through acquisition. In 2019, however, Chris Barnes was appointed chief executive, with a brief to continue buying complementary firms but also to ensure the various parts of Tracsis work more closely with one another.
The process has started to deliver results but should do so even more in future. Brokers predict a 12 per cent increase in revenues to £77 million for the year to this July, with profits up nearly 19 per cent to £13.9 million and continued momentum into 2024 and beyond.
Most of the firm’s spare cash is spent on business expansion but Barnes is keen to pay dividends too, with 2.3p pencilled in for this year and 2.8p for 2024.
MIDAS VERDICT: The Great British Railways is a grand plan to oversee rail transport in the UK, helping to modernise services to the benefit of passengers, business customers and the taxpayer. Digital technology will play a key role. Tracsis is a pioneer in the field and the shares, at £9.80, have further to go. Just the ticket for existing and new investors.
Traded on: AIM Ticker: TRCS Contact: tracsis.com or 0845 125 9162
