Legal & accountancy software player, Tikit Group, made good progress in the year to 31st December 2010. Total revenues increased by 7% to £26.9 million. This despite a reduction in spending by law firms on large scale software projects which led to a 12% fall in consultancy and implementation revenues to £4.8 million. The decline was more than made up for by a 26% increase in software sales (third-party and proprietary) and a 6% increased in managed services. Organic revneue growth wasn't revealed, however, it looks like the revenue contribution from acquisitions of Carpe Diem (just two months) and PensEra (£80K) was minor (see Tikits boost its IPR). A focus on reducing its cost base also enabled Tikit to achieve a 19% increase in pre-tax profits to £2.9 million (even after “exceptionals”) and a 50% increase in cash generation from operations which stood at £5.3m.
Tikit continues to move with the times. With a strong understanding of its focus verticals, the company is making great strides in ensuring it is well positioned to benefit from an increasing number of legal firms looking to outsource their IT. Three recent wins for Tikit’s outsourcing team are encouraging. Now, Tikit is adding a cloud-based legal solution “Tikit Legal Office” to its already broad portfolio of solutions and services. TLO will provide SME law firms with a package including accounting, document management, CRM and time-recording.