6th Jan 2025 09:51
(Alliance News) - Tialis Essential IT PLC on Monday reported positive expectations for its 2024 results, as it anticipates becoming a cash-generating company.
The Edinburgh-based provider of IT support services expects annual revenue of at least GBP20.5 million, compared to GBP22.4 million the year prior.
The company said 2024 was the third consecutive year to record adjusted earnings before interest, taxation, depreciation and amortisation of GBP2 million. Tialis also noted a significant increase in positive cash generation in the year to December 31.
Tialis's current sales pipelines has reached GBP11 million, shared between a "record" number of 19 partners, the IT firm said. Revenue in 2025 is expected to be 48% contracted revenue, 29% anticipated contract extensions and 23% new business.
The company signed onto a GBP4 million revolving credit facility with Santander UK PLC back in September, which is valid for three years. Tialis reported that this was used for early repayment of loans worth GBP4.2 million due in January and December 2025.
Executive Director Ian Smith reiterated the company's focus on growth through mergers, acquisitions and organic sales. "We collectively intend the group to become a cash generating vehicle and will look to implement a progressive dividend policy in the future," Smith said.
Smith is a major shareholder of MXC Capital Ltd, a technology-focused investor based in London. MXC in November raised its stake in Tialis to 76% from 75%. Smith also highlighted Tialis's recent acquisition of shares from Allvotec Ltd, a division of Daisy Group PLC, the Nelson, England-based telecommunications company.
Smith said AIM equities trading retained its "attractiveness", despite proposed changes to inheritance tax laws.
Tialis shares were last quoted at 30.00 pence each on Friday in London.
By Holly Munks, Alliance News reporter
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