Shares in Brisbane-based software company, TechnologyOne (TNE) rose strongly to a record close in yesterday’s mixed market after it reported a solid rise in interim profit and forecast a solid second half to meet market forecasts for the full year.
The shares jumped more than 7% to $2.73, after the company revealed a 14% rise in net profit and a higher interim dividend.
The close was the highest the shares have been for the past year. The previous high was $2.66.
The company reported a profit of $9.9 million for the six months to March, up from the $8.7 million earned a year earlier.
Revenue rose 10% to $87.6 million.
Pre-tax profit rose 17% to $12.8 million.
TNE 1Y – TecnologyOne’s shares hit a record close after profit, dividend lift
Directors forecast revenue growth of 10% to 15% in net profit for the full year to September 30.
That would put net earnings around $31.3 million, up from $27 million in 2013.
TechnologyOne boosted interim dividend 10% per cent to 1.95 cents per share, fully franked.
This represents a payout ratio of 62%. Previously the company had expected the dividend to be 85% franked over the full year. It is now expected it to be 100% franked over the full year.
Executive chairman Adrian Di Marco said in yesterday’s statement TechnologyOne would grow over the coming years as the company moves much of its software to a cloud computing environment and attempts to strike more direct contracts with governments and education institutions.
