The All Ordinaries Index (ASX: XAO) is up a solid 0.9% today, but one ASX tech stock is leaving those gains wanting.
The fast-rising stock in question is Reckon Ltd (ASX: RKN).
Shares in the software company closed yesterday trading for 52 cents. In late morning trade on Tuesday, shares just jumped to 59 cents apiece, up 13.5%.
Here's what's grabbing investor interest.
ASX tech stock leaps on half-year growth
The Reckon share price is surging today following the ASX tech stock's half-year results, with management reporting "impressive growth" across revenue, earnings before interest, taxes, depreciation and amortisation (EBITDA), and net profit after tax (NPAT).
Reckon said its acquisition of Cashflow Manager in January came atop the organic growth in the Business Group.
Drilling into the details (which here include the acquisition of Cashflow Manager), revenue for the six months was up 16% year on year to $33 million.
EBITDA was up 21% to $14 million, while NPAT for the ASX tech stock increased by 35% from the prior corresponding half year to $4 million.
Net debt increased to $4.8 million, up from $2.9 million at 31 December, driven by the acquisition of Cashflow Manager.
And if it's passive income you're after, management declared a fully franked dividend of 2.5 cents per share. Reckon pays dividends once per year. At the current share price, the stock trades on a fully franked pending dividend yield of 4.4%.
If you want to score that dividend payout, you'll need to own shares at market close on 13 August. The ASX tech stock trades ex-dividend next Thursday, 14 August.
What did management say?
Commenting on the results sending the ASX tech stock soaring today, Reckon CEO Sam Allert said:
We are very pleased with our first half results, as we continue with our plan to generate stable cash flows from our well-established Business Group, providing us the flexibility to invest in high growth opportunities such as nQ Zebraworks, our US and UK focused Legal Group, as well as the continued investment in our Reckon One cloud-based products.
Our strong balance sheet provided the means to acquire Cashflow Manager at the commencement of HY25, a welcome addition to our financial performance and adding approximately 20,000 new SME clients.
Turning to Reckon's passive income outlook, Allert added, "We have continued our track record of rewarding shareholders with healthy dividends, and we maintain our intention is to pay one dividend annually at a healthy yield based on the current share price."
