Legal Technology Journal

Tikit has announced its preliminary results for the year ended 31 December 2008 with pre-tax profits up by three percent to £3.5m and revenues up by eight percent to £28.5m.

The addition of TfB, acquired by Tikit in April 2008 for £7.6m including expenses, contributed £3.9m to the total revenue and £1m towards profits during the year, as well as increasing the number of law firm clients serviced by the group by about 500.

Adjusted operating profits – stated before share-based charges and amortisation – were up by 16% to £4.2m.

Revenues were below expectation due to the deferral of capital projects by clients and the implementation of subscription-based pricing introduced in conjunction with key software partner, LexisNexis.

Revenue from managed services and support revenues were up 30% but consultancy work was up by only 1% and total software sales were down by 15%. Sales of Tikit-developed software were up 100% to £1.6m.

Group chairman Mike McGoun said: “There will be a short term impact on both revenues and profits as we move from initial licence fee recognition of software sales to revenue recognition over contracts which typically have a term of five years.”

In Europe Tikit fared less well, with subsidiaries in France and Spain breaking even on revenues of £3m.

In 2009 the group will focus particularly on Tikit-developed software to improve its margins.

Tikit’s managing director David Lumsden said: “Our continued focus on Tikit’s own software should enable our clients to capitalise on their existing investment in CRM and Document Management systems as we provide high value, low cost, add-on applications.”

To view further information on Tikit's year end performance please click here