Early settlement of deferred consideration

RNS Number : 7835G

Tracsis PLC

03 July 2012

 



Tracsis plc

("Tracsis";  the "Company" or "the Group")

Early settlement of deferred consideration

§ Strong performance of MPEC leads to early settlement of consideration

Tracsis, a developer and aggregator of resource optimisation, data capture and reporting technologies to the transport industries, is pleased to announce that it has settled the deferred consideration amount of £1.0m due to the vendor of MPEC Technology Limited ("MPEC").

As set out in the announcement of 2 June 2011, the consideration due under the Sale and Purchase agreement ("SPA")_included a deferred consideration payment of up to £1.0m. This was to be earned over a period of two years and depended on the financial performance of MPEC in that time. The early payment, of the maximum amount which can be achieved under the SPA, reflects the strong performance and contribution that MPEC has made to the Group since acquisition in June 2011.  The obligation of £1.0m was fully provided for in the Tracsis Group Accounts.

The Group's current cash position, after making this payment remains in excess of £6m.  The business remains debt free and the Directors believe it is well positioned for further growth.

John McArthur, Chief Executive Officer commented 

"We are delighted with the way MPEC has performed since acquisition, which is reflected in the fact that the full amount was earned within one year as opposed to two. This successful performance is testament to the quality of our products and technology and excellent relationships with our major customers.  Looking ahead, the intelligent infrastructure market seems set for substantial growth which we are well positioned to take advantage of."

For more information please contact:

John McArthur, Tracsis plc	Tel: [phone]
Katy Mitchell, WH Ireland Limited	Tel: [phone]
Rebecca Sanders Hewett/Jenny Bahr, Redleaf Polhill	Tel: [phone] [e-mail]

Notes to editors:

§ Tracsis plc provides the transportation industry with tools to control and optimise critical aspects of resource optimisation and delivery with the ultimate goal of increasing efficiency, reducing cost and improving performance.

§ The Company addresses these issues through the following divisions:

o  Application software - Tracsis has developed various products to optimise resources, capture data, manage the collated information and report and communicate performance.

o  Embedded software - The Company provides condition monitoring and data logging equipment for the management and maintenance of infrastructure.

o  Professional services - Tracsis advises on key operational and strategic planning problems, providing clients with efficient and best practice solutions to issues faced by transport operators and infrastructure owners.

§ The Company's clients include the majority of UK railway operators, including Network Rail, Virgin Group, Arriva and First Group. Tracsis also works with operators in Europe and Australia.

§ The business drives growth both organically and through acquisition.

§ Tracsis listed on AIM in 2007 under ticker TRCS.

§ For more information visit http://www.tracsis.com

 

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