TechnologyOne (ASX:TNE) increases dividend as profit climbs

Software company TechnologyOne (ASX:TNE) reported an increase in profit for the full year ending September 30, following strong growth in its software as a service (SaaS) business. 

The company’s profit before tax was up 19 per cent from the prior year and at the top end of guidance, underpinned by its Global SaaS ERP solution. Profit after tax of $72.7 million, was up 15 per cent from the prior year. 

SaaS annual recurring revenue of $192.3 million, jumped 43 per cent, while total annual recurring revenue of $257.5 million, lifted 16 per cent. Meanwhile, total revenue lifted 4 per cent from the prior year to $312 million.

The company reported a full year dividend of 13.91 cents per share, up 8 per cent from the prior year. Total expenses were down 1 per cent to $214.2 million.

TechnologyOne said they are on track to hit its target of $500 million plus, annual recurring revenue by financial year 2026. 

Shares in TechnologyOne (ASX:TNE) are trading 3.9 per cent lower at $12.42.