Tax Systems PLC Trading Update (0714N)
January 15 2019 - 1:00AM
UK Regulatory
TIDMTAX
RNS Number : 0714N
Tax Systems PLC
15 January 2019
15 January 2019
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 year ended 31 December 2018.
Following on from the strong performance reported at the time of
the interim results in September 2018, the Group has continued to
grow both recurring and non-recurring revenue from existing and new
customers. As a result, the Board expects to report results for the
year ended 31 December 2018 comfortably in line with management's
expectations.
The Group's income continues to be derived substantially from
recurring revenues, with existing customers consistently choosing
to renew and extend their contracts as well as upgrading to access
additional modules. In addition, Tax Systems secured in excess of
50 new customer accounts during the financial year. This high
quality of earnings, alongside strong cash flow, has underpinned
the Group's ability to decrease its net debt(1) by 32% to GBP13.9m
at 31 December 2018 (31 December 2017: GBP20.5m; 30 June 2018:
GBP17.5m).
The full results for the year ended 31 December 2018 are
expected to be announced in April 2019 and the Board looks forward
to updating shareholders with further details at that time.
Gavin Lyons, CEO of Tax Systems, commented,
"We have made strong progress during the year and I am
incredibly grateful to everyone in the business for their expertise
and commitment to our customers. As a team, we remain focused on
the execution of our growth strategy and I'm pleased to report that
we expect to be comfortably in line with management's expectations,
with the standout financial highlight being a 32% reduction in net
debt.
"Tax Systems has a market leading position, a high-quality
customer base and first class technology. We continue to be focused
on servicing the needs of our existing clients and creating new
solutions to help organisations with the Government's Making Tax
Digital initiative, which begins to be rolled out from April 2019.
As a result, the Company remains in a good position to drive
further growth in 2019."
(1) 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 3405 0205
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
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END
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