TechnologyOne estimates profits up 30 percent

Enterprise software provider TechnologyOne (ASX:TNE) has released preliminary unaudited half year results following a surge in profits.

In a statement to the ASX, executive chairman Adrian Di Marco said he felt the need to report the half year figures - ended March 31 - before they were audited, due to a jump in profits.

The company expected its half year report before tax to be up 30 percent on the previous corresponding period to reach $6.4 million.

"The first half result has been achieved through an increase in licence fees and other revenue coupled with our cost control initiatives," he said.

New contract wins for the first half include Skills, the High Court of Australia, Land Development Agency and the New Zealand Department of Labour.

Di Marco said business conditions remained challenging with strong competition and long lead times for contract approvals.

"For us the biggest challenge in the past 12 months has been contract delays," he said.

"Clearly our first half result has been very strong, but we do not necessarily expect the strong profit momentum in the first half to continue into the second half," Di Marco said.

"Having said that, over the full year the company remains on track to deliver continuing profit and revenue growth."

Half year results will be announced May 24.