Brisbane-based TechnologyOne (TNE) says it has completed its transition to a software-as-a-service (SaaS) company as revenue leapt 19% in the six months to March 31 and the dividend was boosted 10%.
The company told the ASX on Tuesday that the six months to March 31 saw its 13th year of record first half results.
TNE said the 18% rise in profit to $33.2 million was “underpinned by continuing strong demand for the its global SaaS ERP solution.
Profit before tax was up 14% to $42.6 million.
TechnologyOne said its SaaS and Continuing Business had revenue of $169.5 million for the half year, up 21% and representing more than 97% of its business, reflecting a huge shift from TNE’s original legacy licence business.
Total revenue for the half was 19% higher at $172.5 million.
Dividend for the half year is 4.2 cents a share, up 10% and the company is confident the second half will see more of the same.
“The company is well positioned to deliver continuing strong growth over the full year, expecting Net Profit Before Tax growth for FY22 up 10% to 15% on FY21,” according to CEO, Ed Chung.
“We expect to see our SaaS ARR continuing to grow strongly, up more than 40%+ over the full year,” he said on Tuesday.
Mr Chung added: “There is concern in the financial press about the deteriorating economic environment because of inflation and increasing interest rates. Over the past 35 years we have continued to grow strongly in challenging economic environments such as this.”
TNE was very liquid at the end of March, holding cash and cash equivalents totalling $116.4 million, up 16% from March, 2021.
TNE shares eased 1.6% to $10.24 on Tuesday.
