Class Limited (ASX: CL1) is involved in the operations of cloud-based accounting, administration software and investment reporting for accountants, advisers and administrators in Australia. On 4 October 2018, Class Limited released its September Quarter update. Following this release the share price of the company decreased by 5% as on 4 October 2018 as the investors were expecting a better update.
In the September quarter, the total accounts increased by 3,039 to 172,452 and the total Class customers increased to 1,413 with a quarterly increase of 46 new customers. As expected by the company the customer growth was slow in July and August and most of the new customers signed up in the month of September. Over 3,800 new Self-Managed Super Fund’s (SMSF) accounts were added for the quarter. The impact of around 1,200 funds suspended by AMP delivered a net increase in Class Super accounts of 2,638, taking the total SMSFs to 166,102 for the period. The December quarter is expected to gain momentum due to increase in the sign-ups in the September month. With the increase in the SMSF accounts and launch of the company’s ‘Do More’ sales campaign the company is expecting to see a repeat of the success which the company witnessed in the December quarter of last year. The company is expecting that the ongoing pressures will accelerate the adoption of Class Super as practices seek efficiency. In September quarter, the Class Portfolio increased by 7% to 6,350 accounts and 31% of Class Super clients use Class Portfolio. [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]
The Company’s annual Class Connect conference was held on 16-18 September in Sydney which was attended by over 360 attendees and 22 sponsors, making it company’s most successful conference to date. The event was attended by current Class users, Class partners, prospects, investors and industry specialists. Annual General Meeting of Class Limited is planned to be held on Monday 15 October 2018 at 3:00pm at the Hilton Sydney, 488 George Street, Sydney.
On the financial front, In FY 2018 the company revenue grew by 18% to $34 million. The EBITDA margin of the company increased by 47% and the EPS grew by 8%. The company is focused on expanding their engagement with financial planners and it is exploring strategic alliances, mergers and acquisitions in the adjacent markets.
CL1’s share traded at $2.070 with a market capitalization of $256.5 million as on 4 October 2018 (AEST 5:00 PM).
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.