AIM-listed legal and accountancy software and services provider Tikit Group continues to struggle to grow the top line (see A mixed H1 for Tikit). In the year ended 31 December, headline revenue fell 2% to £26.4m, and this includes revenue from the acquisitions of Carpe Diem and Pensera in October 2010 (see here). Tikit said that Carpe Diem provided an ‘excellent contribution’ in the year, although no mention was given to Pensera. Amidst difficulties on the revenue front, Tikit has been keeping a tight control on the costs, as pre-tax profits increase 20% to £3.5m – boosting the margin to 13.3% vs. 11.5%. Net cash also rose 89% to £5.5m.
A couple of encouraging signs on the revenue front is that revenue from recurring managed services business increased 7% to £15.6m (56% of total revenue). And also revenues from Tikit-owned software increased 33% to £8.2m (31% of total revenues). Looking ahead, chairman Mike McGoun said he now plans to make investment in sales, marketing and development, rather than to drive margins higher. However this is unlikely to result in a boost to sales in the short term.