TechnologyOne’s half-year results Profit up 17 per cent

Success attributed to competitors’ failing business models
 
27 May 2013 – TechnologyOne (ASX: TNE) today announced its results for the half-year ending 31 March 2013, reporting strong profit growth and putting the company on track to deliver 10 to 15 per cent growth for the full year. 

The half-year results see a 17 per cent growth in Profit Before Tax and in keeping with its high customer retention and satisfaction rates, Annual Licence Fees once again grew strongly by 18 per cent. 

TechnologyOne Executive Chairman Adrian Di Marco said there were significant growth opportunities ahead. He also attributed the company’s success to the failing business models of its multinational competitors Oracle, SAP and Microsoft, which rely on implementation partners to implement their software.

“We are seeing more and more organisations switching to TechnologyOne after abandoning our competitors’ business models, which are outdated, obsolete and lack accountability,” Mr Di Marco said.

“TechnologyOne develops, sells, implements and maintains its own software, and this unique business model allows us to take complete responsibility for the success of each and every one of our customers’ implementations. 

“When a customer buys TechnologyOne enterprise software, we sign the contract, we are accountable and legally responsible to not only provide the software, but also the outcome.

“Where our competitors charge $3 services to $1 licence fees, TechnologyOne’s approach means our services fees are typically one to one with licence fees, or less.

“A logical extension to our unique business model has been our preconfigured solutions, which leave our R&D lab with ‘proven practice’, already configured and significantly reducing the time, effort, cost and risks associated with traditional enterprise implementations. 

“With our new preconfigured solutions, we have even further reduced implementation costs to be $0.50 of services to $1 of licence fees.”

In light of these half-year results, the TechnologyOne dividend for the half-year increased to 1.77 cents per share, up 10 per cent on the prior year, representing a payout ratio of 62 per cent. The company has continuously paid a dividend since it listed in 1999.

With a market capitalisation exceeding $500 million, TechnologyOne is Australia’s largest enterprise software developer, providing solutions to around 800 customers in Australia, New Zealand, Asia, the South Pacific and the UK. 

Contact: Jenna Fairbairn

Phone: 07 3167 7672