Software as a Service (SaaS) company TechnologyOne (ASX: TNE) has seen its profits jump 13 per cent during its financial year ending 30 September, on the back of a healthy revenue increase.
The company says it is continuing to witness strong growth, underpinned by its Global SaaS enterprise resource planning (ERP) solution.
Annual recurring revenue (ARR) from TechnologyOne's SaaS businesses rose by 23 per cent in the financial year, while total business revenue rose by 4 per cent to $229 million.
"This growth is all organic and includes no acquisitions," says TechnologyOne.
"We have added 104 enterprise customers this year to our Global SaaS ERP solution and we now have 539 large scale enterprise customers, with hundreds of thousands of users, making it the largest single instance SaaS ERP offering in Australia."
TNE's underlying profit before tax hit $86.1 million, leading the company to declare a total dividend of 12.88 cents per share, up 8 per cent.
The company continues to dominate in the local government after closing 40 major deals this year worth more than $45 million in total contract value. In total, the company has more than 300 council customers at 30 September.
In the higher education sector TNE closed 10 major deals with $10 million in total contract value.
The UK regionalisation of TNE's Global SaaS ERP solution is nearing completion. The company says it delivered a breakeven result in the UK with "significant" opportunities identified for the coming years.
Shares in TNE are up 2.67 per cent to $9.24 per share at 11.52am AEDT.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support