This morning Hansen Technologies Limited (ASX: HSN) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half year.
- Net profit of $12.9m, down from $18m
- Operating revenue of $112.4m, down from $118.4m
- Adjusted EBITDA of $28.5m, down from $33.8m
- EBITDA margin of 25.3%, down from 28.6%
- Adjusted earnings per share 9 cents, down from 11.7 cents
- Free cash flow of $10.1m
- Interim dividend of 3 cents per share
- Net debt of $0.6m, gross outstanding debt of $22.7m
- Reconfirmed full year outlook for revenue slightly down & expense base flat
The Hansen share price is down 8.3% in response to a relatively disappointing result for investors used to consistent if moderate growth from this founder led software billings business.
Hansen has also pursued an acquisitive growth strategy over the years and given around 18% of it is still owned by the Hansen family it’s unlikely to take excess risks in over-extending its balance sheet or pursuing risky acquisitions.
At $3.10 on a market value around $666 million it looks reasonably good value for a well run business, with a decent track record and outlook.
For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...
But knowing which blue chips to buy, and when, can be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."
Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
Click here to claim your free report.
Tom Richardson has no position in any of the stocks mentioned.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.