TechOne surprises investors with special dividend
Brisbane’s Technology One has reported a 22 per cent increase in bottom line profits of $88.8 million and claimed to be the only company of its type in the world to transition to software as a service without impacting profit growth.
TechOne chief executive Edward Chung
The profit was also the first under the leadership of Ed Chung who said the company had exceeded its ambition in annual recurring revenue which hit $274 million, an increase of 43 per cent.
The company announced a special dividend of 2 cents a share to add to the final divided of 10.82 cents a share. The full year dividend was 17.02 cents a share.
“With our software as a service business growing faster than expected TechnologyOne is on track to surpass our target of $500 million in annual recurring revenue by 2026,” Chung said.
“Our global SaaS enterprise resource planning is allowing our customers to innovate and meet challenges ahead with greater flexibility and speed without having to worry about underlying technologies,” Chung said.
The company closed 20 deals during the year in the local government sector and 10 in higher education.
The company’s profit before tax margins were up 32 per cent compared with 31 per cent the previous year.
The company is maintaing its goal of doubling in size every five years and forecast its pre-tax profit margin to hit 35 per cent “in the next few years”.
