TechnologyOne expects 25% pre-tax profit gain

Shares in business software company TechnologyOne (ASX:TNE) swelled on Thursday after the company disclosed it expects to post a 25 per cent increase in 1H pre-tax profit

Business software company, TechnologyOne (ASX:TNE), has revealed it expects to report a 25 per cent increase in pre-tax profit for the half-year ended in March.

TNE shares had climbed 7.37 per cent to $1.30 by Thursday's late-afternoon trading on word of the expected gain.

The company, which plans to publish its audited financial results on Monday 23 May, said it had achieved the boost partly through an increase in license fee revenue.

TechnologyOne also commenced sales of customised, preconfigured products during the half-year, including for Newcastle Ports, the Disability Trust, St George Community Housing and two local councils.

Executive chairman, Adrian Di Marco, said the company is now projecting pre-tax profit growth of between 10 per cent and 15 per cent for the full year.

“A number of significant contracts have been closed earlier than originally anticipated,” he said.

Di Marco added that TechnologyOne signed new contracts in all seven of the vertical markets it operates in during the period.

The company plans to provide more detail once the audit is complete, but DiMarco said that ASX disclosure obligations required the company to notify the market given the size of the expected increase.

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Tags businessAdrian Di MarcoTechnologyOneprofit

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