It doesn’t look like Tikit Group’s H1 results (due in September) will be exciting but things do appear to be moving in the right direction. The provider of software and services to the legal & accounting sector in Europe and North America has stated total revenues for the six months to end June will be “similar” to the same period in 2011 (we suspect that means marginally down, otherwise they would have highlighted an increase!).
The good news is that investment in marketing and sales resource appears to be paying off (see Tikit struggling to grow top line revenue). Revenue derived from the sale and support of Tikit-owned software has increased resulting in a “healthy” order book of services based revenue for H2. There is also a good pipeline of opportunities for Tikit-owned software sales in North America. We didn’t expect immediate results from the sales & marketing investment (so the flat top line revenue isn’t unexpected) but it’s good to see there may be some impact in H2. It’s also comforting to see that there has been progress in winning multi-year, outsourcing contracts. And on another positive note, the Group remains cash generative.