BRISBANE – Brisbane-based TechnologyOne has announced a record net profit before tax of $58 million for the year to September 30, driven by what CEO Edward Chung, pictured, calls the company’s “cloud first, mobile first” strategy.
Revenue was $273 million, up 10 percent over last year – and also setting a new record.
There has so far been no resolution of the company’s dispute with Brisbane City Council (BCC) which earlier this year served TechOne with a claim for damages in excess of $50 million, after terminating a contract awarded to TechnologyOne in 2015 to replace 13 of the council’s core IT systems.
TechnologyOne CEO Chung said the company had seen strong continuing sales in local government, with no impact from the conflict with BCC on its sales pipeline.
TechOne said its cloud-based business had risen 69 per cent to $27 million in the latest year, and is on track to reach $143 million of ACV (actual contract value) by 2022.
TechOne added 112 new customers to its cloud business in the reporting year, and now claims more than 270 enterprise customers on its cloud platform. Total annual subscription revenue was $139 million, up 17 percent,
Chung was in triumphant mode. “TechnologyOne continued to dominate in the local government sector, where we closed 10 new major deals totalling $40 million in contract revenue in the last quarter across Queensland, NSW, Victoria, South Australia and WA,” the CEO said.
He added that the company had secured 240 new deals across Australia, New Zealand and the UK in FY17 in local government.
Tech One shares closed at $5.27 on the ASX yesterday, up 0.38 percent.