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Reckon Limited (RKN) today announced operating revenue of A$43.3 million for the six months ended 30 June, up 39 per cent on the prior year, and EBITDA of $12.9 million, before restructuring costs, up 37 per cent.
Reckon posted a net profit after tax of $7 million before restructuring costs, up 25 per cent. The company also reported earnings per share of 5.2 cents, up 25 percent on the corresponding period in 2008.
Reckon will pay shareholders a fully franked interim dividend of 3 cents per share. A year ago, shareholders received a dividend of 2.5 cents per share, fully franked.
“The company continues to show consistency in performance with satisfying outcomes in all key performance areas,” said Reckon Group CEO Clive Rabie.
“Despite challenges in retail sales given the current economic conditions, the overall result in Reckon’s Business Division was very strong” said Rabie, noting retail is not a significant contributor to the company’s overall business. “Our Corporate Services acquisition, strong direct sales and effective cost management all contributed to the company’s Business Division success.”
“The Professional Division expanded its market share while maintenance revenue growth and our acquisition of Billback strengthened also played a significant role in a strong first half of 2009.”
Reckon’s Business Division posted revenues of $25.7 million, up 25 per cent over the previous corresponding period, and EBITDA of $7.5 million, a rise of 23 per cent.
Key to the Business Division’s core strategy, Rabie said, is building on its suite of complementary products under the QuickBooks, Reckon Elite and ReckonDocs (Corporate Services) brands. Expectations are cautiously optimistic for the new QuickBooks Online and initial indications are positive following product’s recent soft launch, he noted.
Reckon’s Professional Division increased its operating revenue to $17.6 million, up 66 per cent on the same period a year ago, and EBITDA of $7.0 million, a 51 per cent rise before restructuring costs. Contributing to the growth was the January acquisition of Billback which resulted in revenues of $6.1 million and an EBITDA of $2.0 million, before restructuring costs.
Rabie said the Professional Division will continue to explore additional opportunities to increase market share. In addition, it will count on expanding Reckon’s integrated product offerings to generate increased maintenance revenue from existing clients. A new joint venture in the US under the nQueue Billback banner also presents growth opportunities for the company.
The results continue Reckon’s successful operations in recent years. For the full year ended December 2008, the company posted revenues of $60.8 million, up 8 per cent on the prior year, and a net profit after tax of $11.3 million, up 14 per cent. Reckon also recorded EBITDA of $19 million, up 15 per cent. Shareholders received a fully franked dividend of 3.5 cents per share.
Reckon's 2009 Half Year Results Presentation |
