Reckon reports half-year profit jump

Reckon Limited has just reported an 8 percent rise in normalised earnings before interest, tax, depreciation and amortisation (EBITDA) for the 6 months to 30 June, generated by strong performances in the company’s Business and Professional Divisions.

This positive result comes even though the company has been adversely impacted by weak economic conditions in the UK and New Zealand, adverse exchange rates and a sluggish retail sector in Australia.

Reckon posted EBITDA of $16.6 million, with operating revenue of $46.7million for first half of 2011. Normalised net profit after tax (NPAT) is $9.3 million for the first half of this year ($8.3m after significant items outside normal operating activities), compared with $8.8 million at this time last year.

The Board has declared an interim dividend of 3.5 cents per share.

“It is pleasing to see solid organic revenue growth in our core businesses, and that the continual push for further efficiency gains is bearing fruit,” Reckon Group CEO Clive Rabie

“Within the constraints of difficult market conditions, and the consequential delays in decision making, we continue our historical strong new product sales growth which in turn adds to our maintenance revenue base by adding new clients to the business each year.”

Reckon’s Business Division has continued to experience strong growth in direct business, but has been impacted by weaknesses in the retail sector. The division is also seeing substantial new customer growth as a result of its online offering, QuickBooks Hosted.

Reckon’s Professional Division has posted EBITDA growth of 16 percent for the first half of 2011, notwithstanding economic difficulties in the UK and New Zealand, thanks to a strong local performance.

The company expects the Professional Division will perform more strongly in the second half of 2011 as a result of large contracts recently won.

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