TechnologyOne On Track To Deliver Full-Year FY19 Profits; Stock Price Slides By 2.58% Today

May 24, 2019 11:27 PM AEST | By Team Kalkine Media
 TechnologyOne On Track To Deliver Full-Year FY19 Profits; Stock Price Slides By 2.58% Today

TechnologyOne Limited (ASX:TNE), one of the largest Software as a Service (SaaS) company based in Fortitude Valley, Australia is engaged in R&D, development, marketing, sales and deployment of integrated enterprise business software solutions in New Zealand, Australia, and globally. The company’s clients include local government (more than 300 council customers) and businesses from asset-intensive sectors, health and community services, education, financial services industries as well as corporates.

With a market capitalisation of around AUD 2.33 billion with ~ 317.12 million outstanding shares, the TNE stock closed the market trading session today (24 May 2019) at a price of AUD 7.170, dipping 2.58% by AUD 0.190 on prior day’s close (AUD 7.160). The stock price has a 52-week high and low of AUD 9.395 and AUD 4.097 respectively. In addition, the stock’s YTD return also stands positive at 21.65% so far.

Recently on 21 May 2019, TechnologyOne declared an ordinary fully paid dividend of AUD 0.0315 (up 10%) (Record Date: Friday, 31 May 2019) to be paid out on Friday, 14 June 2019 with respect to the period of six months ended 31 March 2019.

On the same day, the Half-year Results for the six months to 31 March 2019 were disclosed to the market whereby the company reported a continued growth trend with profits underpinned by the accelerated growth of its enterprise SaaS solution.

A quick look at the figures are as follows:

Source: 2019 Half Year Results Presentation

In addition, TechnologyOne recorded a 7% rise in the R&D expenditure (before capitalisation) to the value of $ 27.8 million, which represents 22% of the revenue.

TechnologyOne’s SaaS offering presents a compelling value proposition to the customers which has pushed the number of large-scale enterprise SaaS customers 389 (up 39% on pcp).

2019 Half Year Results Presentation

With a consistently positive operating cash flow of $ 7.8 million (up 100+%), the company’s net cash and cash equivalents stood at $ 68.2 million (up 19%).

TechnologyOne’s CEO, Mr Edward Chung, pleasingly commented on the results and explained that the company has delivered record profit for the 10th in a row along with excellent revenue figures and a rising product fees.” According to the CEO, the company is well headed towards further growth and expected to deliver Net Profit Before Tax over the full year of between $ 71.6 million -$ 76.3 million.

Previously, on 27 February 2019, the Company informed the stakeholders that Mr Clifford Rosenberg has joined as the new independent, Non-Executive Director. This follows the addition of Dr Jane Andrews and Ms Sharon Doyle to the Board in 2016 and 2018 respectively. The fourth appointment is scheduled to be finalised in the second half of CY2019.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.