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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.”

3 replies on “Tikit interims – not good but not bad either”

Hang on Charles, I think your attachment has several scoops. Bech-bruun have relocated to Holland! Autonomy Imanage have abandoned version numbers and have started down the Microsoft road of naming things in years. However in this case years aren't quite fine enough so “Worksite April 2009”. I wonder if that is 8.4 or 8.5?

Charles Christian says… Now I know most of what you read in the legal technology world is either written or ghosted by me but in this case I didn't write the Tikit chairman's report – and I think its jolly unfair to expect an overpaid Rupert or Fiona at some City PR agency to realise that Copenhagen (home of Bech Bruun) is not in Holland.

Fiona and Rupert's grasp of european geography did pique my interest and so I have just re-read the chairman's report looking for other such gems. However on a serious note the following phrase has caught my eye “In the meantime, we are investing in our future by using these resources (consultants..), wherever possible, to speed up the development of Tikit-developed software….”. If you take this comment along with the announcement by Tikit that they have been working on the 64bit version of their PMS offering since earlier this year then it would imply that they are now serious about software development.
In that case it does makes you think:
1. They would be better off private.
2. They must have significant number of consultants who can develop or developers who have spent the last few years as consultants. If so, where did they get them from or have they been hiding their lights under bushels?

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