LONDON (ShareCast) - Tikit said trading in the second quarter proved to be disappointing and warned that it expects its market in the second half of the year to remain difficult.
The IT consultancy and third-party software reseller saw
a higher than expected level in deferrals of third party software sales, particularly CRM and Document Management products, which also led to a reduction in consultancy and implementation revenues related to these products.
This business mix has an adverse effect on margins and is likely to continue into the second half, it added, though TfB continues to perform in line with expectations.
As a result, Tikit expects to report unaudited profits before tax, share based charges and amortisation of about £1.1m for the 6 month period ended 30 June on turnover similar to the equivalent period last year.
"The legal market that the group serves continues to undertake cost and headcount reductions and further deferral of capital projects which leads the board to believe that its market in the second half of the year will remain difficult," said the group.
"However, the opportunity pipeline is good and as the group has an element of positive second half weighting in terms of profitability and combined with annualised cost savings of approximately £1m undertaken in the first half, the board anticipates a stronger performance in the remainder of the year."
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