Australian enterprise software provider TechnologyOne has committed to continuing its push into the UK market despite a $1.5 million loss on the business venture in 2009.
In an ASX statement, the company said the UK market remained challenging due to the global financial crisis and was further exacerbated through TechnologyOne’s status as a new entrant.
In response to the loss in the UK, the company is to split its UK management into northern and southern regions, and implement cost control measures to move the business toward profitability.
The news comes as the company reported its full 2009 financial results, which saw the wider business record revenue growth of 11 per cent year on year to $122.5 million.
Net profit after tax was down nine per cent to $15.68 million, in part due to a 17 per cent increase in expenses to $77.3 million and contract delays.
Along with $1.1 million in costs to acquire a corporate performance planning solution, these expenses include the $1.5 million loss in the UK business, and a $1.9 million loss on its Human Resources and Payroll business. The company’s new customer relationship management (CRM) offering broke even during the year.
The company said it had managed to excite demand for its products, with an eight per cent increase licence fees during the year.
In an effort to reduce time, effort, costs and risk, TechnologyOne said it was implementing new programs and promotions as well as moving to a new sales approach which would see the company offer ‘best practice, pre-configured, out of the box’ solutions for specific market verticals rather than custom solutions.
The new offerings, for niches such as water utilities, ports and airports, will be offered in mid- to late-2010.
TechnologyOne would also continue to invest around 20 per cent of revenues in research and development, including investment in CRM, enterprise content management (ECM), corporate performance management (CPM), and a new ‘next generation’ software platform.
In February the company announced that TAFE institutions across Victoria would roll out its student management system in three phases over three years to enable 13 institutions to process enrolments, assessments and other daily tasks.