Reckon records 42 per cent profit lift for June half year

Result reflects 2009 restructure and US merger

Financial software company Reckon (ASX:RKN) has recorded solid growth in its net profit after tax of 42 per cent year on year to $8.8 million for the half year to June 30.

EBITDA was up 30 per cent year on year to 15.3 million while operating revenue grew a more modest seven per cent to 46.5 million.

The ASX-listed company’s Business Division, which caters to SMEs, recorded operating revenue growth of 12 per cent to $28.8 million and an EBITDA growth of 39 per cent to $10.2 million.

The Professional Division, which caters to accountancy practices, recorded operating revenue declines of five per cent to $13.8 million and an EBITDA growth of six per cent to $5.6 million.

The company's nQueue BillBack Division's (which caters to the legal profession) operating revenue was 25 per cent to $3.9 million and EBITDA growth of 123 per cent to $1.6 million.

In an ASX statement, chairman, John Thame, said the results reflected a reaping of benefits accrued from the company’s 2009 restructure and the successful merger of Reckon’s subsidiary, Billback USA, with nQueue in the second half of 2009.

Under that agreement, both companies agreed to have membership interest in a new entity nQueue Billback.

Looking at the year ahead, the company said it would look to both organic and acquisitions as a means of growth.

It would also look to develop products for the software-as-a-service market, expand its product suit into the accounting profession mid-market, and develop additional offerings for the accounting and legal markets.

In February, Reckon released its preliminary results for the financial year to 31 December 2009, recording a 42 per cent year on year increase in operating revenues to $85.3 million.

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.

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