Tikit publish their annual results
London 7:00am, Thursday 12 March… The AIM-listed Tikit Group plc has just published its financial results for the year ended 31 December 2008. The headline financial figures (presented under IFRS) are:
£28.5m (2007: £26.4m) 8% increase
Operating profit before share-based charges and amortisation
£4.2m (2007: £3.6m) 16% increase
Profit before taxation
£3.5m (2007: £3.4m) 3% increase
Earnings per share before share-based charges and amortisation
22.0p (2007: 20.3p) 8% increase
Basic earnings per share
18.1p (2007: 18.6p) 3% decrease
Dividend per share
6.0p (2007: 5.0p) 20% increase
Net cash at year end
£0.3m (2007: £2.5m)
Tikit chairman Mike McGoun that despite the market having entered a recession during the course of last year, the company had still been able to increase revenues, operating profits and earning per share. He also explained that the decline in net cash was attributable solely to the £6.03 costs of acquisition associated with the TfB deal and the final deferred consideration paid in respect of Shamrock Marketing.
Managing director David Lumsden added that despite the recession, law firms were still investing in systems that could help improve efficiency and cut costs, with both the Interwoven Worksite DMS and LexisNexis Interaction CRM products performing well.
Lumsden added that the TfB transaction “not only added almost 500 new law firms to Tikit’s client base, but also enhanced the strength of the senior management team. In line with our stated strategy, it increased our managed services revenues through its strong support business and also added important Tikit-owned software revenues. The benefit of cross-selling opportunities is starting to come through and this mid-market expertise strengthens the Tikit proposition. Revenues from TfB’s contracted managed services now cover 95% of its overheads, making this a particularly strong business in the current environment. The benefits of being part of Tikit Group, in terms of financial strength and industry expertise, have accelerated TfB’s customer mandates against weaker competitors in the sector. TfB’s practice management software won many awards during the year, culminating in its highest accolade as the Law Society’s top PMS product.”
With the addition of the TfB customer base, Tikit now has over 1000 active customers.
Turning to the future, Lumsden said “Given the tougher trading conditions expected over the next 12 to 18 months, we will continue to focus on providing excellent service levels in order to maintain the high renewal-rate of our managed services contracts. Revenues from these contracts represented 44% of the Group’s revenues in 2008 and are a key element of the Group’s strategy.
“Our continued focus on Tikit’s own software should enable our clients to capitalise on their existing investment in CRM and document management systems as we provide high-value, low-cost, add-on applications. In addition, we anticipate increased penetration by TfB into the mid-size law firm market as a result of it being part of Tikit Group.
“The operational focus for 2009 will be to continue to place particular emphasis on Tikit-owned software sales, better utilisation of resources, strong cost control and cash management in order to deliver increased margins from an improved business mix.”
The full results can be found in the attached file.