TechnologyOne’s revenue up to $49.5 million

The company's revenue is up 30 percent to $49.5 million while profit after tax (PAT) is up 15 percent to $6.97 million.

According to TechnologyOne’s announcement to the Australian Stock Exchange (ASX), the results exceed previous market commentary provided by the company. It was expected “that TechnologyOne results would be lower than the corresponding period last year because of expectations that a number of large contracts would be secured in the second half of the year,” stated the release.

TechnologyOne’s executive chairman, Adrian Di Marco, said he was particularly pleased the results from existing operations (prior to Avand acquisition) were much stronger than originally expected, with PBT at $9.7 million - 22 percent above the same period last year.

“The unplanned acquisition of the Avand business that occurred in the first half, has contributed a loss of approximately $700k to our results,” he said.

Di Marco claimed the company’s continued strong performance is a direct result of its various strategic initiatives which have included the new generation Connected Intelligence (CI) series of products, the new House of Products business model, as well as the substantial broadening of our enterprise suite of products.

Both Central region (NSW, Victoria and the ACT) and North West region (Queensland, SA, WA and Tasmania) performed exceptionally strong.

The United Kingdom (UK) has continued to perform to expectations, with the signing of two new and strategically important contracts, Royal Liverpool Children’s Hospital (RLCH) and the Institute of Education (IOE), a college of the federal University of London. The company plans for its UK operations to approach breaking even this year, which will occur sooner than originally expected.

Di Marco said the company is also looking for acquisition opportunities.

“TechnologyOne will continue to look for further acquisitions that extend our enterprise product suite, that have potential value to our existing customers and that also extend our existing customer base,” he said.

TechnologyOne has increased the interim dividend by 10 percent to 1.67 cents per share. The company remains on track to deliver growth of between 15 percent and 20 percent above the 2006/2007 financial year.