The Class Ltd (ASX: CL1) share price was on the move on Tuesday following the release of its full year results.
The self-managed super fund (SMSF) platform provider’s shares fell 1% to finish the day at $1.31.
Did Class perform better in FY 2019?
Class had a solid but unspectacular 12 months during FY 2019.
The company reported a 13% increase in operating revenue to $38.3 million, a 13% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $17.9 million, and a 3% rise in net profit after tax to $9 million.
This allowed the board to declare a final fully franked dividend of 2.5 cents per share, which will be paid to eligible shareholders on September 27.
At the end of the period the company had a total of 179,082 accounts on its platform. This was an increase of 5.7% and comprised 171,447 SMSFs and 7,635 Class Portfolio accounts.
This means the company now has a 28% share of the SMSF market, up 1 percentage point since the end of FY 2018.
The company’s new CEO, Andrew Russell, believes this is the start of a new and exciting chapter for Class.
He said: “Joining Class in May, I was impressed by the solid underlying business revenue. Class is in a unique and enviable position with strong recurring revenue which sets a solid foundation to embark on our next successful chapter. Our reimagination strategy positions the business to realise its potential through executing a strategy which builds on our existing strengths and expands our product and market horizons to grow revenue and accelerate growth.”
“With a reinvigorated customer and delivery focus to uplift technology, product, marketing and sales capability, we will build momentum in FY20 and accelerate growth in FY21 and beyond,” the CEO added.
Mr Russell also revealed that the company has its eyes on other markets. He advised that the company is “working with major clients to extend the Class suite of products and exploring entry into new markets through a combination of build, buy or partner.”
Class wasn’t the only company releasing its full year results on Tuesday. Other results of note saw design software company Altium Ltd (ASX: ALU) deliver a 41.1% lift in net profit after tax to US$52.9 million and job listings giant SEEK Limited (ASX: SEK) post an 18% increase in revenue to $1,537.3 million.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of Altium and Class Limited. The Motley Fool Australia has recommended SEEK Limited. 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.