Turnover in the financial year 2017/18 grew to £26.7m, our strongest performance and a continuation of recent trends. Profit before tax increased to £11.1m (including an £8m exceptional item).
The bedrock of our business remains the strong and continuing relationships we have with our clients. Annual recurring revenues in 2017/18 covered 99% of our total costs and these revenues provide the financial stability on which to base future development and growth.
Turnover is increasing, recurring revenue is at an excellent level and all other key financial indicators are in good shape. Prospective business is at an all-time high.
Research and Development
Trace is first and foremost a services company and to maintain our position we aim to continue to deliver best of breed software. Top quality software requires continual investment and we allocate approximately 15% of our annual salary costs to research and development. We will continue in our drive to provide existing and future clients with the highest quality software, matched by the best delivery and support that the market can offer.
The group operates in 4 diverse market sectors but is financially well balanced across the board. This provides a good buffer against any downturns in specific industry areas.