Technology One to deliver growth

At TechnologyOne’s AGM today, Chairman Adrian Di Marco said the organisation expected to deliver growth of between 5-10% this financial year, based on the assumption that the new AIFRS (Australian International Financial Reporting Standards) would have no significant impact on the company’s accounting policies. 

“We will launch our operations in the United Kingdom early in 2006, and will maintain significant investment in research and development,” Mr Di Marco said. 

“As has been the case with the development of our Connected Intelligence platform over the past two years, new licence fee revenue will allow us to sustain major investments whilst we to continue to deliver growth.” 

Mr Di Marco said the company delivered a 17% increase in new licence fee growth in the 2005 financial year, and with market conditions continuing to improve, the company expected continuing new licence fee growth this financial year. 

“TechnologyOne has a strong track record of committing to new product development, last year expensing 18% of revenue into research and development. 

“Our commitment to delivering new generation technology applications ahead of our competitors is giving us a market leadership position and delivering significant new business. 

“In the past year, we delivered TechnologyOne Financials on our new generation Connected Intelligence series to clients. We now have over 70 customers who have implemented, or are implementing, the Connected Intelligence version of this solution.” 

TechnologyOne’s Connected Intelligence series is next generation software. It delivers a business solution that is people centric, and driven by its users rather than by the software. 

In the 2006 calendar year, TechnologyOne will rollout the remaining HR/Payroll, Supply Chain, Student Administration and Rating and Property Management products in the Connected Intelligence series. The company expects these solutions to contribute to growth in the next 12 months, particularly as it increases its footprint in the local government and higher education markets. 

While TechnologyOne continues to extend the breadth of its product range to give the company a total solution for clients in specific vertical markets, the delivery of a fully integrated HR/Payroll and Financial Management solution has become critical component of the company’s success in all markets. 

“We have invested significantly in our HR/Payroll solution, and we will continue to develop increased functionality to strengthen this solution over the next 12 months. We expect this solution to become a strong, ‘best in class’ solution in its own right, and a key driver for winning new business. 

“In 2005, we also launched a Work and Asset Management solution to increase our breadth, and strengthen our total product offering for the local government market and in asset and service intensive industries.” 

TechnologyOne also continues to invest in a Business Intelligence solution to give clients a big picture view of their business, without the overheads of investing in a best of breed business intelligence solution. 

Summary of 2005 Financial Performance 

TechnologyOne deliver a profit before tax of $14.3 million, an increase of 9% over the previous year. Demand for the company’s products and services increased, as shown by the addition of 83 new clients, and licence fees to new clients up 17% of the prior year. 

Highlights of the announcement are as follows: 
  • Revenue of $54.54 million, up 8%
  • Research and Development Expenditure (fully expensed) of $10.22 million, representing 18% of revenue
  • Net Operating Cash Flow of $11.06 million, versus Net Profit After Tax of $10.28million, up 8% 
  • EBITDAR* of $24.99 million, up 8%
  • Dividend Per Share of 3.10 cents, up 9% 
  • Earnings Per Share of 3.44 cents, up 9% 
*Earnings before interest, tax, depreciation, amortisation and R&D