TechnologyOne reveals 17% jump in profit

ASX-listed TechnologyOne today revealed strong growth for its software business, with a 17 percent jump in profit before tax for the half year.

The Australian software and services company is now forecasting a 10-15 percent increase in profit for the full financial year, helped in part by solid growth in software licence fees.

Profit before tax for the half year was $12.8 million, while revenues increased by 10 percent to $87 million.

The result is proof of the "resilient nature of the enterprise software market", according to a statement issued by the company to the ASX today.

This included a 24 percent rise in software license fees for the half year, while annual license fees also grew by 13 percent.

The company attributed the result to demand for its Ci suite and a number of contracts closing earlier than normal.

Major new customers include Bendigo and Adelaide Bank, Department of Racing, Gaming & Liquor in Western Australia, OneCare Limited, Teachers Mutual Bank, Transport for NSW and the Victorian Institute of Teaching.

The company also flagged a move to provide "value added" services around its Ci suite. TechnologyOne already provides "non product" consulting, but has described market conditions for non-Ci product services as "challenging".

In recent years the company has also branched out into third party software sales. Late last year CRN reported a 10 percent increase in sales of third party software by TechnologyOne.

The company also recently secured a $3 million council win, adding to more than 250 local councils using its OneCouncil product.