The Reckon Group has delivered a very solid profit result despite significant headwinds during the 2011 year:
Direct revenue in the Business Division has continued to trend upwards, growing by 6%, with particularly strong performances again in both the enterprise and online offerings. The division was, however, impacted by a substantially weaker retail channel in 2011, and minimal tax changes in New Zealand has dampened upgrade revenue (down by 33%). Market share growth in the retail channel has continued and the business continues to add substantial numbers of new customers through both the retail channel and online offerings sold direct.
The Professional Division has been the star performer in 2011, driven by a particularly good result in Australia for the year, with EBITDA growing by 24%, aided by substantially improved performances in the second half in both New Zealand and United Kingdom. The division continues it's historically strong new product sales growth from both new clients and existing clients, which in turn adds to the maintenance revenue base each year.
A substantially improved second half performance in the United Kingdom has meant that the nQueueBillback Division has been able to mitigate some of the adverse impact of exchange rates impacting this division. A high proportion of revenue in this division is also made up of sales to new customers, as it continues to increase market share.
A focus on constraining costs has allowed the group to mitigate the adverse impacts on some revenue channels, resulting in EBITDA growth of 10% (before relocation costs) and corresponding improvement in EBITDA margins from 33% to 37%.
Group CEO, Mr Clive Rabie said:
"The group has consistently demonstrated solid growth in its core businesses and this provides a secure and stable foundation for the future. Our customers and partners can be assured that this financial strength will ensure that the group can and will remain the leader in its' respective markets delivering innovative and high quality products and solutions.
In particular cloud computing solutions in all of our businesses are becoming increasingly demanded by our clients and the market generally. The Reckon Group is in an enviable position to provide these solutions and hence we are
excited about the potential that this could provide."
Click here to view the Reckon Highlights Commentary for Year Ending December 2011.
Clive Rabie
CEO
02 9577 5946
Chris Hagglund
Group CFO
02 9577 5415
