23rd Apr 2018 11:52
LONDON (Alliance News) - Corporation tax software firm Tax Systems PLC said Monday its 2017 loss narrowed amid a jump in revenue as organic growth was helped by the contribution from acquisitions.
In 2017, its pretax loss narrowed to GBP1.9 million from GBP4.0 million the year prior. This was after revenue rose to GBP15.1 million from GBP5.8 million the year before.
Profit performance was held back by a rise in administrative expenses and cost of sales to GBP15.3 million from GBP9.0 million the year prior.
Revenue performance was boosted by the contributions from recent acquisitions including Tax Computer Systems Ltd for GBP73.0 million in July 2016 and OSMO Data Technology Ltd for GBP3.2 million in April 2017.
On a proforma basis, revenue rose 17% to GBP15.1 million from GBP12.9 million.
"We are delighted to report on a successful year in which we delivered against our strategic objectives of growth, retention, acquisitions, debt reduction and operational transformation," Chief Executive Gavin Lyons said.
"We have considerably increased the level of organic growth and contracted annuity base, secured new customers and completed key milestones in our technology roadmap via the acquisition of OSMO and ongoing internal development. Importantly, this has been accompanied by a reduction in our levels of debt due to continuing high levels of recurring revenues, gross margin and cash generation."
In April, Tax Systems acquired data extraction automation firm OSMO Data Technology for GBP3.2 million in an all-share deal.
"We enter the new year well positioned for growth and continue to actively consider further acquisitions in order to extend our capabilities and create further value for our shareholders", Lyons added.
Shares in Tax Systems were 0.4% higher at 81.30 pence on Monday.
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