Reckon's revenues rising

Reckon (ASX:RKN) has released its preliminary results recording a 42 per cent year on year increase in operating revenues to $85.3 million for the financial year to December 31, 2009.

The financial software company also recorded a group EBITDA after business acquisition restructure costs of $25.1 million, a 32 per cent increase year on year.

Group net profit after tax after business acquisition restructure costs was $13.6 million, up 20 per cent year on year.

Commenting on the results, Reckon Group CEO Clive Rabie said in a statement that the company had managed to generate organic profit growth in its existing businesses resulting from both increased revenue and carefully managing costs.

“Reckon is well positioned to continue organic growth with an exciting product roadmap which will move us into the so-called 'SaaS' market,” he said. “We will continue to expand the product suite further and offer more to the enterprise and micro markets as well as to the accounting and legal markets.

“It remains our aim to build a strong customer base and leverage the full suite of our products into that base, across all divisions.”

During the year, Reckon’s US subsidiary, Billback Systems, concluded an agreement with nQueue under which both companies would have membership interest in a new entity nQueue Billback.

On January 1, 2009 Reckon also acquired the corporate services and cost recovery business of Espreon Ltd for $19 million.

Commenting on these two initiatives, Rabie said Reckon had benefited from the acquisition of Billback and the corporate services business as well as from the nQueue Billback joint venture.

“The nQueue Billback joint venture showed positive results from a focused sales effort in the first 6 months of the joint venture,” he said. “We believe the joint venture is now well placed to gain market share in the large United States market.

“While this business continues to have growth in new customers, it will also shortly be positioned to roll out an increased product range to its existing customers.”

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