Hansen Technologies (ASX:HSN) share price takes off on record FY21 results

The ASX tech share released its 2021 financial year results.

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The Hansen Technologies Limited (ASX: HSN) share price is gaining in early trade, up 2.2% to $6.24 per share.

This comes following the release of the company's full year financial results for the year ending 30 June (FY21)

Hansen Technologies share price lifts on record FY21 results

  • Operating revenue increased 2% year-on-year to $307.7 million.
  • Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $120.2 million, up 40% from the $85.7 million reported in FY20.
  • Underlying net profit after tax (NPAT) of $56.8 million, up 93% from FY20.
  • $70.1 million worth of free cash flow, up from $44.2 million in FY20.
  • Declared a final, partially franked, dividend of 5 cents per share (cps).

What happened during the reporting period for Hansen Technologies?

The company, which provides software and services to the energy, water and communications industries around the world, delivered a record year across its key metrics.

It reported an improved underlying EBITDA margin for FY21 of 39.4%. Hansen said this was driven by improved cost management along with reduced travel during the global pandemic.

The company continued with new hires, saying its strong recruitment of new developers will enable it to deliver on its future.

The Hansen Technologies share price could also be getting a lift from the report it also brought on a "significant" number of new customer during the year, including Telefonica, Western Power, and Nautilus Solar.

In June BGH Capital made a takeover offer, valuing Hansen at $6.50 per share. The company said it will keep the market informed as matters progress. In the meantime, "We are focused on driving our strategic agenda while the BGH Capital process unfolds."

What did management say?

Commenting on the results, Hansen's CEO, Andrew Hansen said:

It is with great pleasure that we share the Hansen results for FY21, another record year for Hansen across all key metrics, continuing our strong performance throughout our history and more recently the global pandemic.

We have grown revenues 8% on a constant currency basis, driven a strong increase in profitability leading to a record full-year EBITDA while investing in our business to deliver the large volumes of new business and to position Hansen for a "COVID-normal" world…

The FY21 result proves the long-term resilience of our business model of growing revenues and EBITDA by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

What's next for Hansen Technologies?

The record date for the final dividend is 30 August, with the payment date on 21 September.

Hansen said it expects continued regulatory change to help drive its organic growth going forward. It's targeting EBITDA margins of 32–35% over the long run.

Management said they are confident of achieving Hansen's FY25 financial targets of $500 million of revenue.

The Hansen Technologies share price is up 95% over the past 12 months.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. 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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