Shares in IT specialist Hansen Technologies Limited (ASX: HSN) soared 11% today after management announced it expects revenues for the half-year ending 31 December 2015 between $72 million to $74 million, with an EBITDA margin at the top end of its target range between 25%-30%.
Hansen is a global provider of customer care, billing and meter data software solutions for utilities, Pay-TV and telecommunications companies. The business is family run and the shares have more than tripled in price in less than two years as investors jump on board its rocketing growth outlook.
Notably, operating revenue for the first half of 2015 was $49.2 million, so the company is now expecting to report 48% growth in operating revenue at the mid-point of the first half 2016 range. This suggests the company could post full year operating revenues in the region of $146 million up around 38% over the prior year.
The twin characteristics of strong revenue growth and improving margins are the classic hallmarks of a hot tech stock to watch and the group now trades on around 30x trailing earnings per share of 10 cents. However, given the overseas exposure, healthy margins and strong outlook it looks like this business is one for the top of investors’ watch lists.
Other growing technology businesses to watch include Melbourne-based Technology One Limited (ASX: TNE), which is also a globally growing software provider and IT specialist, while Urbanise.com Ltd (ASX: UBN) is another software specialist servicing property management businesses globally.
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Motley Fool contributor Tom Richardson has no position in any stocks mentioned.
You can find Tom on Twitter @tommyr345
Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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