19 Jul 2018 07:00
19 July 2018
Tax Systems plc
("Tax Systems", "the Group" or "the Company")
Trading Update
Tax Systems plc (AIM: TAX), a leading supplier of corporation tax software and services, is pleased to provide an update on trading for the six months ended 30 June 2018.
The Group has delivered a strong trading performance in the first half of the year, driven by increases in both recurring and non-recurring revenue.
Revenues for the period are expected to show a 14% increase over the comparable period in the prior year, with organic revenue growth of 9%, demonstrating the successful execution of the Company's strategy to boost organic growth through investment in sales and pre-sales.
The Group's income continues to be derived substantially from recurring revenues, with customers consistently choosing to renew and extend their contracts with Tax Systems. This high quality of earnings, alongside strong cash flow, has underpinned the Group's ability to decrease its net debt* by 15% to £17.5m at 30 June 2018 (31 December 2017: £20.5m; 30 June 2017: £23.6m).
EBITDA is comfortably in line with expectations and the board of directors is confident with the outlook for the full financial year. The Group expects to report results for the six months ended 30 June 2018 in September.
Gavin Lyons, CEO of Tax Systems, commented,
"We are pleased with the progress made during the first half of the year and I am thankful to all the team, who have embraced the changes implemented at Tax Systems over the last two years and worked very hard to execute our growth strategy.
"We have a first-class customer base, exceptionally high levels of recurring revenue and margin, best-of-breed technology and a market opportunity driven by regulatory change. We are confident in our ability to deliver for the remainder of the year and beyond."
*Net debt is defined as bank borrowings and loan notes recognised as liabilities and the equity element of the loan notes recognised in equity less cash
Tax Systems plc |
|
Gavin Lyons, Chief Executive Officer Kevin Goggin, Chief Financial Officer
| +44 (0)1784 777700
|
|
|
MXC Capital Markets LLP (Financial Adviser) |
|
Charlotte Stranner Steven Zhang
| +44 (0)20 7965 8149
|
|
|
finnCap Limited (Nomad and Broker) |
|
Jonny Franklin-Adams/James Thompson (Corporate Finance) | +44 (0)20 7220 0500 |
Tim Redfern/Richard Chambers (Corporate Broking)
|
|
|
|
Alma PR (Financial PR) |
|
Caroline Forde / Josh Royston / Susie Hudson | +44 (0)20 8004 4218 |
About Tax Systems Plc
Tax Systems is a leading provider of corporation tax software and services in the UK and Ireland. The business has a long track record of being a key supplier of corporation tax software and services to many of the largest companies and the accounting profession in the UK and Ireland. Find out more at www.taxsystems.com