Leeds-based Tracsis (TRCS:AIM) has bounced back following a year to forget, in share price terms. Having spent most of 2017 in negative territory following its inclusion in our list of best ideas for the year, the stock is back showing a modest profit.

The smart transport analytics and infrastructure company was left deeply frustrated by its failure to pull off a value-enhancing acquisition in its last financial year (to 31 July), a fundamental part of its buy-and-build strategy. We believe that will be corrected in the current 12 month period, with perhaps more than one deal on the cards.

Management is upbeat about deal opportunities going forward. And July’s enterprise software contract win, worth potentially several million pounds, shows the inherent opportunities in the underlying business.

It’s also worth noting that Tracsis has more than £5m of deferred earn out payments sat on the balance sheet. This relates largely to previous acquisition Ontrac. If the company does pay most of that money out it would surely imply very strong trading from that business. That’s something to look out for in half year results around March or April 2018.

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