Tikit's pre-close trading statement
The AIM-listed Tikit Group plc has reported on trading for the year ended 31 December 2008, as it enters its close period and ahead of the announcement of its preliminary results in March 2009. The Board says trading during the second half of the year, despite increasingly difficult conditions, has been satisfactory, and that the full year trading results will be ahead of the prior year and broadly in line with market expectations.
The Group has closed the year with a positive cash balance, reflecting the cash generative nature of its operations; this is following a cash outflow of £6.0 million in respect of acquisitions during the year. The statement goes on to say “As indicated at the half year, the caution exhibited by our clients has resulted in lower than planned sales of third party software and a small impact on implementation revenues from project-based work. However the Group's focus on recurring revenues and Tikit-developed IPR has helped improve margins overall. TfB, which was acquired by the Group in April, has made an important contribution to the Group's results and performed in line with the Board's expectations at the time of acquisition.
“As the Group enters 2009, the Board expects the tougher trading conditions to continue. The legal market that the Group serves is in a period of cost and headcount reductions and some deferral of capital projects. However, we continue to experience good levels of business activity and believe that the effect of a full twelve months contribution from TfB combined with strong cost control should enable the Group to continue to grow profits and earnings per share.”
A further update will be given to shareholders at the time of release of the preliminary results in March.