Tax Systems PLC Trading Update (8027B)

TIDMTAX

RNS Number : 8027B

Tax Systems PLC

15 January 2018

Tax Systems plc

("Tax Systems" or the "Company")

Trading Update

Tax Systems, a leading supplier of corporation tax software and services, is pleased to provide the following trading update for the year ended 31 December 2017.

As reported at the time of the Company's interim results in September, 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 debt(1) which decreased from GBP23.6m as at 30 June 2017 to c.GBP20.5m 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 and the Board looks forward to updating shareholders with further details at that time.

Gavin Lyons, CEO, commented: "We are pleased with the progress achieved in the year following initiation of our investment and transformation plan. In a short space of time, 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

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

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

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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January 15, 2018 02:00 ET (07:00 GMT)