Legal and accounting software specialist Tikit (TIK) has issued a solid trading update in which it predicts its full year results will be in line with market expectations.
Legal and accounting software specialist Tikit (TIK) has issued a solid trading statement in which it predicts its full year results will be in line with market expectations.
Buoyed by strong demand for its own products, the AIM counter has maintained its operating margins of 17.1 per cent through the second half of 2011. In addition, Tikit is enjoying strong cash generation so this help boost its cash balance – £4.1 million at the interim stage.
Tikit has secured a healthy pipeline of implementation work, which combined with its focus on recurring revenue provide a solid backdrop for the current year. House broker Charles Stanley predicts 2011 pre-tax profits of £4.3 million and EPS of 21.3p.
The shares are up 7p to 293.5p as the market warms to the latest update from Tikit. Further news on current trading will be released in March when Tikit issues its full-year results. We last urged readers to buy the shares in Growth Company Investor in September at 266.5p, so the rally since then is pleasing. Hold on.