Tax Systems PLC Trading Update (4370L)

TIDMTAX

RNS Number : 4370L

Tax Systems PLC

19 July 2017

19 July 2017

Tax Systems plc

("Tax Systems", " the Company " or "the Group ")

Trading Update

Tax Systems, a leading supplier of corporation tax software and services, is pleased to provide an update on trading for the six months ended 30 June 2017.

Group trading during the first half of the year, net debt of GBP24.0m at 30 June 2017 and the operational and financial key performance indicators were all in line with expectations. The Group repaid GBP0.9m of bank debt during the period. Customer renewals in the period were strong. In addition, new customer wins across the Group's existing markets of large corporations and accountancy firms were in line with the organic growth plan.

The integration of OSMO Data Technology Limited ("OSMO"), acquired on 3 April 2017, is proceeding as planned. Most importantly, less than 3 months after the acquisition, OSMO is now linked with AlphaTax, the Company's flagship product. This was recently demonstrated at the Company's customer conference on 4 July 2017 where close to 200 people attended.

A key focus over the period has been the continued investment in the Group's people, product development and systems infrastructure. As a result, the Group made significant strides having defined its 18-month technology roadmap and all releases were launched as planned for the first half of the year. This included the recent launch of the Group's first cloud-based product, a data entry module enabling accountancy firms to collect data more efficiently from their customers. To support the further rollout of the technology roadmap, all of the Group's technology offerings have been realigned into four core suites; Alpha Compliance Suite, Alpha Control Suite, OSMO Automation Suite, and Services. The Company will continue to invest in its technology offering with a focus on enhancing its cloud capabilities.

The Group expects to report results for the six months ended 30 June 2017 in September.

Gavin Lyons, CEO of Tax Systems, commented, "We are pleased with the Group's progress for the first half of the year. The last year has been one of significant change and we have made substantial investment in our people, processes, systems and technology. All aspects of our business are operating in line with expectations. Looking ahead, the market opportunity is driven by regulation and internal pressure for tax departments to improve efficiency, reduce operational risk and increase audit control. We remain optimistic about the Group's growth prospects."

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014

 
 Tax Systems plc 
 Gavin Lyons, Chief Executive 
  Officer                              [phone] 
 
 MXC Capital Markets LLP (Financial 
  Adviser) 
 Marc Young/Charlotte Stranner         [phone] 
 
 finnCap Limited (Nomad and 
  Broker) 
 Jonny Franklin-Adams/James 
  Thompson (Corporate Finance)         [phone] 
 Tim Redfern/Richard Chambers 
  (Corporate Broking) 
 
 Alma PR (Financial PR) 
 Hilary Buchanan / Josh Royston 
  / Helena Bogle                       [phone] 
 

About Tax Systems Plc

Tax Systems plc 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 19, 2017 02:00 ET (06:00 GMT)