Positive half year results from TechnologyOne

Enterprise software company TechnologyOne (ASX: TNE) released its half year results today.

Shares have risen 2% on the news, as the company grew net profit before tax 17%. Annual license fees climbed 18%, indicating continued strong customer retention. The company also raised its half-year dividend by 10% to 1.77 cents a share.

In a press release, executive chairman Adrian Di Marco said that competitors’ failures had been the company’s gain. “We are seeing more and more organisations switching to TechnologyOne after abandoning our competitors’ business models, which are outdated, obsolete and lack accountability,” he said.

In other news, TechnologyOne has signed its first cloud customer in the UK with financial services company Pepper Europe (an Australian player expanding into Europe). TechnologyOne has cited both a move to cloud computing and its own UK expansion as key to future growth.

Shares of TechnologyOne have risen about 38% in the last twelve months, versus a 23% rise in the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO).

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Motley Fool contributor Catherine Baab-Muguira has no financial interest in any of the companies mentioned in this article.

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