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Objective continues to achieve record results
Revenue up 25% to AUS$21.1m; Profit up 121% to AUS$1.2m.
Objective Corporation (ASX: OCL), a specialist provider of content, collaboration and process management solutions, today announced profit after tax of AUS$1.2 million for the six months to 31 December 2009 (FY09 H1: AUS$0.5 million). Revenue increased by 25 per cent from the previous corresponding period to AUS$21.1 million (FY09 H1: AUS$16.9 million).
European revenue grew 69 per cent to AUS$6.2 million (FY09 H1: AUS$3.7 million). Asia Pacific revenue was AUS$14.2 million, representing an increase of 14 per cent over the previous corresponding period (FY09 H1: AUS$12.5 million).
At 31 December 2009, the company had AUS$8.2 million in cash and cash equivalents, net of borrowings.
Consistent with all prior years, an interim dividend was not declared.
Mr Tony Walls, CEO, Objective Corporation said: “We are pleased to report profit improvement and record revenue for the first half. Our ongoing focus on delivering solutions for the public sector continues to drive our success.
“The successful acquisition of Limehouse Software last year expanded our public sector market share and capabilities in line with our long-term growth strategy.
“With the business integration plan for Limehouse Software now reaching conclusion, we are leveraging our deep domain expertise in collaborative content creation, publishing and stakeholder consultation. As we continue the successful rollout of these solutions in the United Kingdom (UK) and United States, we are also launching these community and collaboration solutions in the Asia Pacific market,” said Mr Walls.
Operations
Objective continued to invest in its technology. Fully expensed research and development was AUS$5.0 million, approximately 24 per cent of revenue.
Substantial product innovation continues to enhance outcomes for our customers. Significant enhancements were released in Objective 7.4 and showcased at Objective’s successful international customer conference ’Collaborate’.
Asia Pacific delivered solid revenue growth and an unprecedented level of successful customer project outcomes with a number of customers including Mornington Peninsula Shire, City of Greater Dandenong, Office of the Clerk eCommittee, Commonwealth Ombudsman, Public Transport Authority and Australian Securities and Investments Commission. New contracts included New Zealand Department of Building and Housing and Origin Energy.
During this period, Objective renewed its brand image and market positioning to reflect our long-term strategy of focusing on the public sector in defined geographies and to support us in our next phase of growth.
European operations delivered revenue and profit improvement, with a AUS$900k profit turnaround in our ECM business, over the previous corresponding period.
In the UK, Objective conducted new research that identified a substantial untapped area for cost savings and performance improvements in document production processes for local authorities. The research indicated that in document production alone, just under £1 billion can be saved across UK councils.
The company welcomed new customers including Northumberland County Council, Stevenage Borough Council, Devon County Council, Central Bedfordshire Council, Newcastle City Council, North Tyneside Council, Chichester District Council, Suffolk County Council, West Yorkshire Metro, Cheshire East Council, Derby City Council and Bedford Borough Council.
Operations in the United States continue to be profitable with a number of customer contracts signed for Objective’s Limehouse solution including the Town of Cary in North Carolina and Sequoia National Forest, as part of the USDA Forest Service.
Capital management
The share buy-back was concluded in August 2009. A further 5,000,000 shares were bought back for AUS$1 million. There are no further share buybacks currently planned.
Outlook
During the past six months, Objective again demonstrated solid growth and increasing acceptance in target markets.
“The outlook for the 2010 financial year and beyond remains positive. We expect a solid overall performance,” said Mr Walls.
“We have a strong understanding of our customers’ needs and deliver solutions with significant financial, social and political return on investment at a time when all government departments are striving to meet the challenge of reducing costs, while maintaining the quality of their wide range of community and business services.
“We are actively pursuing acquisition opportunities that will expand our existing capabilities and deliver value to all stakeholders,” said Mr Walls.
The board and management of Objective Corporation would like to thank the company’s customers and employees for their commitment and valuable contributions to the growth and success of the company.
European revenue grew 69 per cent to AUS$6.2 million (FY09 H1: AUS$3.7 million). Asia Pacific revenue was AUS$14.2 million, representing an increase of 14 per cent over the previous corresponding period (FY09 H1: AUS$12.5 million).
At 31 December 2009, the company had AUS$8.2 million in cash and cash equivalents, net of borrowings.
Consistent with all prior years, an interim dividend was not declared.
Mr Tony Walls, CEO, Objective Corporation said: “We are pleased to report profit improvement and record revenue for the first half. Our ongoing focus on delivering solutions for the public sector continues to drive our success.
“The successful acquisition of Limehouse Software last year expanded our public sector market share and capabilities in line with our long-term growth strategy.
“With the business integration plan for Limehouse Software now reaching conclusion, we are leveraging our deep domain expertise in collaborative content creation, publishing and stakeholder consultation. As we continue the successful rollout of these solutions in the United Kingdom (UK) and United States, we are also launching these community and collaboration solutions in the Asia Pacific market,” said Mr Walls.
Operations
Objective continued to invest in its technology. Fully expensed research and development was AUS$5.0 million, approximately 24 per cent of revenue.
Substantial product innovation continues to enhance outcomes for our customers. Significant enhancements were released in Objective 7.4 and showcased at Objective’s successful international customer conference ’Collaborate’.
Asia Pacific delivered solid revenue growth and an unprecedented level of successful customer project outcomes with a number of customers including Mornington Peninsula Shire, City of Greater Dandenong, Office of the Clerk eCommittee, Commonwealth Ombudsman, Public Transport Authority and Australian Securities and Investments Commission. New contracts included New Zealand Department of Building and Housing and Origin Energy.
During this period, Objective renewed its brand image and market positioning to reflect our long-term strategy of focusing on the public sector in defined geographies and to support us in our next phase of growth.
European operations delivered revenue and profit improvement, with a AUS$900k profit turnaround in our ECM business, over the previous corresponding period.
In the UK, Objective conducted new research that identified a substantial untapped area for cost savings and performance improvements in document production processes for local authorities. The research indicated that in document production alone, just under £1 billion can be saved across UK councils.
The company welcomed new customers including Northumberland County Council, Stevenage Borough Council, Devon County Council, Central Bedfordshire Council, Newcastle City Council, North Tyneside Council, Chichester District Council, Suffolk County Council, West Yorkshire Metro, Cheshire East Council, Derby City Council and Bedford Borough Council.
Operations in the United States continue to be profitable with a number of customer contracts signed for Objective’s Limehouse solution including the Town of Cary in North Carolina and Sequoia National Forest, as part of the USDA Forest Service.
Capital management
The share buy-back was concluded in August 2009. A further 5,000,000 shares were bought back for AUS$1 million. There are no further share buybacks currently planned.
Outlook
During the past six months, Objective again demonstrated solid growth and increasing acceptance in target markets.
“The outlook for the 2010 financial year and beyond remains positive. We expect a solid overall performance,” said Mr Walls.
“We have a strong understanding of our customers’ needs and deliver solutions with significant financial, social and political return on investment at a time when all government departments are striving to meet the challenge of reducing costs, while maintaining the quality of their wide range of community and business services.
“We are actively pursuing acquisition opportunities that will expand our existing capabilities and deliver value to all stakeholders,” said Mr Walls.
The board and management of Objective Corporation would like to thank the company’s customers and employees for their commitment and valuable contributions to the growth and success of the company.
