Objective flags 70 per cent H1 profit rise

Steven DeareAAP
Software vendor Objective Corporation has forecast a 40 per cent rise in sales for its first-half.
Camera IconSoftware vendor Objective Corporation has forecast a 40 per cent rise in sales for its first-half.

Software vendor Objective Corporation, which caters to government agencies, has forecast a 70 per cent rise in net profit for its first-half.

The firm on Friday said a net profit after tax of $7.2 million was expected for the six months to December 31, a hefty rise on the same six months of 2019.

A boost in sales, expected to be 40 per cent, will provide $46.5 million revenue.

The company makes content management software, including programs that help government employees gain approvals for their work quickly.

The profit expectations could bode well for shareholder dividends. Objective last year paid a record dividend of seven cents per share, fully franked.

Objective chief executive and founder Tony Walls said he expected the strong momentum to continue for the full financial year.

The company is also ramping up efforts for future products. It increased investment in research and development by 45 per cent to $11.1 million during the first-half.

The company last year bought Australian software group Itree, which also makes products for government, for $18.4 million.

Shares earlier fetched a record $14.50.

At 1334 AEDT, they were higher by 5.38 per cent to $13.70.

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