TechnologyOne continues growth despite global economic crisis
Technology One Limited (ASX: TNE), a leading Australian provider of enterprise business software solutions, is bucking the worldwide trend sparked by the global economic crisis.
Despite reports of a downturn in the ICT sector, TechnologyOne has continued to win substantial new business through its ongoing significant investment in the development of improved software solutions.
TechnologyOne’s results for the 2008 financial year will be announced on 17 November* and will show continuing growth for the year ending 30 September 2008. New contract wins include Adelaide Airport, Townsville Port Authority, Employers Mutual, Wotif.com, the University of the Sunshine Coast, Healthscope and Consolidated Travel.
Adrian Di Marco, Executive Chairman of TechnologyOne, believes the company’s continued success in the current economic climate highlights the fact that enterprise business software solutions are considered critical for optimising business performance and achieving cost savings.
“Our solutions drive efficiency and cut costs, so the organisations we deal with don’t historically see this spending as discretionary,” he said.
“This, combined with the fact that we are very strong in sectors like Government, which tend to be counter-cyclical, means that organisations are still willing to invest in business software solutions.”
The company plans to recruit more than 200 new staff in the forthcoming year for its Australian and international operations and plans to invest more than $32 million in research and development over the next twelve months.
TechnologyOne continued to increase its foothold in the Government sector during the year, winning large and high profile departments such as the Australian Institute of Sport, Comcare, the Department of Climate Change, the Ministry for the Environment in New Zealand and the National Capital Authority. Other organisations such as the Australian Fisheries Management Authority, the Department of Innovation, Industry, Science & Research, and the Ministry of Justice in New Zealand have also substantially increased their use of TechnologyOne solutions in the last 12 months.
TechnologyOne has increased its presence in the Financial Services sector, winning significant contracts with The Bank of New York Mellon, the Rural Finance Corporation of Victoria and Employers Mutual. The company is also excelling in the Health sector with new customers including Nelson Marlborough District Health Board and the Hawkes Bay Health Board in New Zealand, as well as the Whiddon Group and Healthscope in Australasia.
In the Education space, TechnologyOne replaced a major competitor’s product at the University of the Sunshine Coast and won new contracts with the Manukau Institute of Technology in New Zealand and the Institute of Education in the United Kingdom. In the Managed Services sector, which incorporates companies in the property, media and commercial markets, the company won new business with Prime Television, FKP Property Group, Consolidated Travel and Wotif.com.
TechnologyOne is already the supplier of choice in the Local Government sector throughout Australia and New Zealand, providing more than 220 major councils with software solutions to deal with financial management, performance planning, human resources and payroll, and the generation of rates notices. Customers already realising the benefits of these solutions include the City of Sydney, City of Melbourne, Sunshine Coast Regional Council, Townsville City Council, City of Fremantle, Penrith City Council and Warringah Council. New contract wins this year in the Local Government sector have included City of Ryde, eight new Northern Territory Local Government Shires, Moreton Bay Regional Council, Fraser Coast Regional Council and the Rural City of Wangaratta.
New customers in the Utilities sector include Grampians Wimmera Mallee Water Corporation, Townsville Port Authority, North East Water, East Gippsland Water and Adelaide Airport. Water authorities in particular are increasingly turning to TechnologyOne enterprise solution because of the benefits the fully integrated, out of the box software solutions can generate, especially as they experience increased regulation and greater demand from both Government and consumers around billing, recycling and conservation.
Mr Di Marco said the company has continued to win substantial contracts in the United Kingdom and is starting to gain momentum in this very large marketplace.
“We have had some large high profile wins this year in the UK – including the Institute of Education in London, the Royal Liverpool Children’s NHS Trust, and the Strathclyde Partnership for Transport which are now reaping the cost savings and efficiencies of our integrated Financials, Business Intelligence and Supply Chain solutions.”
One of the company’s biggest success stories this financial year has been the launch of TechnologyOne’s new Business Intelligence and Enterprise Budgeting solutions. Since the general release of these products in September 2007, more than 70 customers have signed up for either one or both of these new solutions.
Another major achievement has been the seamless implementation into existing customers of TechnologyOne’s Connected Intelligence (Ci) platform, the next generation of its enterprise applications. This is an accomplishment that has remained elusive for the large multi-national giants such as Oracle and SAP.
More than 80 per cent of TechnologyOne’s 800-plus customers have made the move to the Ci platform, which delivers true people-centric business tools to guide users through daily tasks with personal workflow, alerts, announcements and portlets specific to the user’s role within the organisation. Intuitive to use, it also drastically reduces the requirement for software training.
“We are now reaping the rewards of our company’s $100 million investment in research and development over recent years,” Mr Di Marco said.
Mr Di Marco said the company’s commitment to R&D spending ensured the company would remain at the leading edge of business software solutions.