The trading performance of the business has continued to be strong and, as such, the board expects to report results for the year ended 31 December 2017 in line with market expectations.
Good order intake and cash conversion in the second half of the year saw a continued reduction in net debt1 which decreased from £23.6 million as at 30 June 2017, to c.£20.5 million as at 31 December 2017.
A significant amount of activity and progress during the year has led to a solid platform having been put in place to support the company’s growth strategy and day-to-day operations.
The future market opportunity remains substantial, arising from the continued move towards digitising the tax system, as well as the drive to improve efficiency and reduce risk within corporate tax departments.
The full results for the year ended 31 December 2017 are expected to be announced in April 2018, at which time the board will update shareholders with further details.
Gavin Lyons, Tax System’s CEO, said,”We have put in place the foundations from which to pursue our organic and acquisitive growth strategy. While there is always more work to be done, our stable customer base, coupled with high levels of recurring revenue and future technology plans, leaves the board confident of a successful year ahead.”
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.