TechnologyOne H1 profit up 48 per cent
Brisbane-based software provider TechnologyOne has warned full-year earnings may not be as pleasing as its 48 per cent rise in first-half earnings.
The enterprise resource planning vendor is still encouraging customers to move from on-site installations to online delivery of its products. The latter is easier and helps the chance of repeat sales.
Boss Ed Chung said while the software as a service model was growing, sales under the old model would drop by about $7 million this financial year.
Mr Chung said this would have a significant impact on full-year earnings, but was part of efforts to grow software as a service sales.
TechnologyOne has forecast full-year net profit before tax to be between $94.3 million and $98.6 million.
More than 85 per cent of company sales are based on recurring online subscriptions.
The company said sales of these online products would improve by more than 15 per cent each year.
For the six months to March 31, sales to Australian federal government agencies helped generate a net profit after tax of $28.2 million.
TechnologyOne has 14 software products which include functions for payroll, human resources and asset management.
Its customers include government, financial services providers, airports and ports, and health and community services organisations.
Chairman Adrian Di Marco said in view of the first-half earnings and confidence looking ahead, shareholders' payout had been increased.
They will receive an interim dividend of 3.82 cents per share. The fully franked amount is 2.29 cents per share.
This is higher than the previous interim payout of 3.47 cents per share, of which 2.08 cents per share were fully franked.
Shares were higher by two per cent to $9.17 at 1345 AEST.
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