TechnologyOne (TNE) shares dipped 1.3% yesterday despite the company revealing a solid 2013-14 profit.
The company said pre-tax profit for the year to September was $40.2 million, up 15% for the year and better than initial guidance for a rise of a range of 10% to 15%.
It also pointed to strong customer retention and new product releases as also helping to drive its sales and profit growth over the year.
The Queensland-based company boosted revenue for the year 8% to $195.1 million, with initial licence fees up 11% to $42 million, and annual licence fees rising 16% to AU$84.2 million.
Net profit after tax was AU$31 million, up 15% on 2012-13’s figure.
Despite the impressive figures, the shares fell 3.3% to $3.15.
TNE YTD – Licence fees boost TNE profit
Not even the payment of a 2 cents a share special dividend, which boosted total payout for the year to 8.16 cents a share, from 5.6 cents in 2012-13, could drive the shares higher.
Over the year, TechnologyOne said it secured 15 enterprise cloud deals, with a number of contracts going to big-ticket clients, including Tourism Queensland, Macquarie University, and St Vincent de Paul Society.
Executive chairman Adrian Di Marco said that the company’s continued focus on its research and development activities will enable its long-term success.
“Our ability to evolve and adapt to a rapidly changing world, while remaining focused on what we do, has been the key to our long-term success,” Mr Di Marco said in yesterday’s statement.
