Tikit interims – not good but not bad either

The AIM-listed Tikit Group plc has just published its interim results for the 6 months to 30 June 2009. Although the figures aren’t as good as last year – which was only to be expected in a recession – they also aren’t that bad. Although they do prompt the question: why is a company this big on AIM, wouldn’t they do better to go private and escape from the distraction of having to hit their reporting targets?

The full report is attached as a PDF however here are some of the headline figures and comments…

• Group Revenues down 4% to £13.06 million (2008: £13.64 million)
• Contracted managed services revenue up 13% to £6.59 million (2008: £5.85 million) and now contributes more than 50% of total Group revenues
• Software sales down 22% to £2.85 million ( 2008: £3.67 million)
• Consultancy services down 25% to £2.93 million ( 2008: £ 3.88 million)          
• Cash generated from operations in the first half was £1.75 million (2008: £2.95 million)
Commenting on the results, Mike McGoun, Chairman, said: “Whilst it is disappointing to report results which are lower than we had originally targeted, this is largely as a result of deferrals of software purchases by some of our clients and not through any loss of business or a change in the competitiveness of Tikit’s offerings. The actions we have taken in the light of tougher trading conditions have been timely and effective and the resulting cost reductions place the business in an excellent position for profit improvement as conditions improve. The actions taken, the healthy pipeline of opportunities and the traditionally stronger second half create a strong platform for the Group to improve its trading performance in the second half of the financial year.”

The operating review also contains the comment “TFB, the business acquired by Tikit in April last year, has greatly contributed to the Group’s management strength, client coverage and recurring revenue streams.”