Reckon reveals soaring profit in first half of 2010
Software management specialist Reckon Ltd (ASX: RKN) announced on Tuesday that the company's first half net profit for the current year soared by 44 percent to $8.85 million, coming from the $6.15 million it netted on the previous corresponding year.
The company said that first half revenues also increased by seven percent to $46.48 million, amidst a business environment described by group chief executive Clive Rabie as "very strong but unsettled."
Mr Rabie said that the company's business division, which offers QuickBooks and Quicken software via retail outlets, witnessed organic sales growth in all its channels, where particular solid turnovers were delivered by the enterprise product range.
On the other hand, Reckon's professional division, which specialises in offering products to large accounting companies, continued its growth and new clients were added at remarkable pace, according to Mr Rabie.
The group also revealed that the merger of its two subsidiaries, BillBack and nQueue, led to the smooth operation of Reckon's US and UK businesses and with the progress achieved by the technical integration, "we expect that this will position us well to bring an exciting and complete offering to all markets in all geographies."
The company said that its combined US and UK operations conspired in collecting earnings before interest, tax, amortisation and depreciation of $1.63 million in the first half of 2010, which is an improvement of 76 percent from earnings posted in the previous corresponding year.
Reckon said that it would continue to take the same strategic direction it has plotted as the company sustains its pursuit of organic growth, search for more advantageous acquisitions and exploit its ungeared balance sheet.