TechnologyOne announces preliminary half year results

Technology One Limited (ASX:TNE) today announced preliminary unaudited results for the half year ending 31 March 2011. The company expects the first half Profit Before Tax to be up by more than 25% on the previous corresponding period.

TechnologyOne Executive Chairman, Adrian Di Marco said "given the expected size of the increase in the first half profit, it is necessary to inform the market due to ASX continuous disclosure requirements, even though the results are at this stage preliminary and subject to final audit review."

According to Mr Di Marco, the first half result had been achieved through an increase in licence fees and other revenue.

In particular, the company continues to increase its market penetration against its multinational competitors in what is a challenging market.

TechnologyOne has increased its presence across all the sectors it services; signing new customers in all seven of its key vertical markets in recent months.  New customers include Land Information New Zealand, National Research Institute PNG, Hepburn City Council, Wesley Mission Brisbane, St Vincent de Paul Society Queensland, Adelaide Festival Centre, Bendigo Regional Institute of TAFE, Coliban Regional Water Corporation and Victorian Managed Insurance Authority.

The half year has also seen sales of TechnologyOne's new preconfigured solutions; including OnePorts to Newcastle Ports, OneCommunity to The Disability Trust, OneHousing to St George Community Housing and OneCouncil to Hepburn City Council and Corangamite Shire Council.

"A number of significant contracts have been closed earlier than originally anticipated. Over the full year, the company is on track to deliver strong profit and revenue growth. For the full year the most likely scenario is that Profit BeforeTax will be up between 10% to 15%," said Mr Di Marco.

Further details will be provided in the coming months.

The company's half year results are yet to be reviewed and finalised by the company's auditors and official results will be released on Monday 23 May 2011.

Until all contracts have been reviewed by the company auditors, the final results for the half year will not be known and as such the preliminary results for the half year are subject to change.

Once the final audited results are available, TechnologyOne will provide a greater level of disclosure to the market.