PROFIT UPLOAD FOR TECHNOLOGYONE
Written on the 19 April 2010
BRISBANE software company TechnologyOne Limited (TNE) expects to record a 30 per cent spike in profits for the March half, following a string of new contracts with clients including the High Court of Australia and Skills Victoria.
CEO Adrian Di Marco (pictured) says the profit before tax result of $6.4 million is still unaudited, with official results to be released on May 24.
“The first half result has been achieved through an increase in license fees and other revenue, coupled with our cost control initiatives,” he says.
“Given the operating leverage that still exists in our business, this has had the impact of driving up our first half profits substantially.”
TNE has signed with new customers including the High Court of Australia, Skills Victoria, Land Development Agency, New Zealand Department of Labour, Burwood Council, Moonee Valley Council, Newcastle Airport, Unitywater and National Transport Insurance.
Di Marco says with aggressive tactics from competitors and delayed decisions the current environment is challenging.
“In such an environment it is important to note that we are not losing business to our competitors, in fact, we are actually winning a greater share than in the past, as customers look for ways to improve their efficiencies and challenge existing supplier arrangements,” he says.
“For us the biggest challenge in the last 12 months has been contract delays in a more cautious and risk averse market.”
TNE shares rose 4.6 per cent to 80 cents per share this morning.