Earnings season is well underway, and ASX companies are preparing to pay out millions in dividends to investors soon.

Next week, a bunch of ASX shares will go ex-dividend.

That means they will commence trading without the upcoming dividend attached from a specified date.

If you're interested in buying any of these ASX shares and picking up that next payment, you'll need to do it before the 'ex-div' date.

Of course, here at The Fool we do not recommend buying ASX shares just to get the next dividend payment.

Our market experts say the decision to buy should be more thoughtful than that, and based on fundamental analysis.

It's important to know that a stock's share price will typically fall on the ex-dividend date.

That's simply because the dividend is no longer attached, which makes the stock less valuable.

Here are a number of ASX shares going ex-dividend next week, and how much these companies intend to pay to investors and when.

8 ASX shares about to go ex-dividend

Are dividends lower than usual?

If you're getting the feeling that dividend yields are lower than usual, your instincts are right.

The S&P/ASX 200 Index (ASX: XJO) is one of the highest-yielding share markets in the world, with long-run average annual dividends of 4% to 4.5% per annum.

As we reported earlier today, this has changed.

Betashares says the trailing cash dividend yield of the ASX 200 has dropped to 3.34% per year.

This is largely because the miners are paying lower dividend yields due to weakened commodity prices.

Additionally, the banks are paying lower dividend yields following strong share price growth between late 2023 and 2025.

Betashares senior investment strategist, Cameron Gleeson, says:

Australia's reputation as a high dividend-market rests heavily on the shoulders of the big banks and miners.

Recently, this dependence has started to threaten the sustainability of the overall market dividend yield.

Over the last two years, dividends at an index level have been falling as the earnings yield has taken a hit.

The post 8 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

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."

The post Guess which ASX tech stock just jumped 14% on 'impressive growth' appeared first on The Motley Fool Australia.

So it might come as a surprise that there were many ASX tech shares that did very well over FY2022, outperforming both the All Ords and the All Tech index. Let's check them out.

The 5 best ASX All Ords tech shares of FY2022

Our first All Ords tech share to check out is Reckon Limited (ASX: RKN). This accounting software company started FY2022 off at 95.5 cents per share but finished up at $1.20. That's a rise worth a pleasing 25.65%. Shares of this company rocketed when it announced that it would be selling its Accountants Practice Management Group division back in May.

As we covered at the time, Reckon declared that it intended to sell this division to Access Group for $100 million, with the proceeds to be returned to shareholders. At the time, Reckon's share price soared by more than 50%, and it has kept its new highs ever since.

Something old, something new…

Next up we have a stalwart of the ASX tech sector in Computershare Limited (ASX: CPU). Computershare has been around since the late 1970s and operates one of the largest share registries in the world. Many ASX investors would have used its services to manage their own portfolios.

Over FY2022, Computershare shares went from $16.90 to $24.64. That's worth a gain of 45.8%. Investors can also add a couple of points there to account for this company's dividend, which is currently sitting on a yield of just under 2%. It appears investors have stayed bullish on Computershare over FY2022 thanks to its established business model and a perceived ability to handle rising inflation.

Let's now look at Brainchip Holdings Ltd (ASX: BRN). Artificial intelligence company Brainchip has been a popular share to watch in recent years, no doubt helped by its rather wild volatility. Over FY2022, Brainchip shares went as high as $2.34 and as low as 36 cents each.

However, its FY2022 numbers line up to give this company a gain of 63.27%, given it started July 2021 at 49 cents and finished on 30 June 2022 at 80 cents.

The tech share winners of FY2022 revealed

Our penultimate All Ords tech performer is none other than Envirosuit Ltd (ASX: EVS). Evirosuit is a company that provides environmental management solutions through its software platform. It started out in FY2022 trading at just 9 cents a share. But Envirosuit ended up finishing the year at 15.5 cents, resulting in a healthy 72.22% gain for investors.

In this case, a strategic partnership with international company Aeroqual, as well as another tie-up with the American space agency NASA, looks to have boosted investor confidence in this company over FY2022.

And our best performing All Ords tech share goes to… Silex Systems Ltd (ASX: SLX). Silex is an ASX tech share that specialises in uranium enrichment technology.

We saw Silex rise from 90 cents a share in July last year to $2.10 by the end of June. That's a gain worth a whopping 133.33%. That put Silex Systems at an eight-year high by June.

In this case, Silex's fortunes seem to have been boosted by the energy crisis that has gripped the world in 2022. This has been largely brought on by the Russia-Ukraine war, giving renewed focus to alternative sources of energy.

So that's five of the best-performing ASX All Ords tech shares of FY2022. It just goes to show that even though most ASX tech shares had a disappointing year, diamonds can always be found in the rough.

The post Here's a look at the 5 best ASX All Ords tech shares in FY22 appeared first on The Motley Fool Australia.

Reckon shares are defying the broader sell-off, currently up 49.71% to $1.31.

Here's what's driving investor interest in the ASX software solutions provider today.

What did Reckon announce?

The Reckon share price is off to the races after the company reported it has entered into a sales agreement with international consortium Access Group.

Subject to Australian regulatory approvals, Access will buy Reckon's Accountants Practice Management Group for $100 million cash.

That price equates to 4.6 times the 2021 financial year revenue for the Accountants Practice Management Group and 8.4 times its earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Investors may also be bidding up the Reckon share price after the company reported it intends to return the majority of the sales proceeds to shareholders via a partially franked special dividend.

Reckon also plans to strengthen its balance sheet by repaying some of its outstanding debt.

Commenting on the sale, Reckon CEO Sam Allert said:

The sale agreement with Access Group represents a compelling offer, which we believe is in the best interests of our shareholders. The transaction unlocks significant value for shareholders.

Reckon will be in a stronger position to focus on and invest in the growth and development of the Business and Legal Groups, should the transaction complete. These divisions represented approximately 70% of the company's revenue and 60% of the company's EBITDA prior to this transaction and we believe have significant upside.

This transaction would allow us to focus on our remaining business divisions.

Reckon expects the transaction to be completed within the next three months.

Reckon share price snapshot

Today's big surge has lifted the Reckon share price well into the green for 2022, up around 40%. That compares quite favourably to the 8.2% year-to-date loss posted by the All Ordinaries Index (ASX: XAO).

The post Here's why the Reckon share price is booming 50% on Thursday appeared first on The Motley Fool Australia.

In afternoon trade, the software company's shares are up 8% to a 52-week high of $1.05.

Reckon share price jumps on half year update

• Normalised revenue increased 2.4% on the prior corresponding period to $37.5 million
• 88% of revenue is recurring and from subscriptions
• Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) up 7.1% to $16.7 million
• Normalised net profit after tax jumped 18.6% to $5.4 million
• Fully franked interim dividend per share of 3 cents

What happened in the first half for Reckon?

Investors have been bidding the Reckon share price higher today after management revealed that its transition to a cloud software business continued to gather pace during the half.

It advised that the company's revenue and earnings growth was driven by the continuing uptake of its cloud-based products, particularly through the Business segment. This is supporting strong ongoing profitability.

Another positive supporting the Reckon share price was its improving balance sheet. During the period, the company reduced its debt by $17 million to $13 million through the sale of the ReckonDocs business and a continued focus on capital management.

What did management say?

Reckon's CEO, Sam Allert, was pleased with the first half. And while no guidance was given for the second half, Mr Allert appears optimistic that the positive form will continue.

He said: "Our transition from a desktop software business to a cloud software business continues at pace. It is pleasing to see cloud adoption across all business divisions, with growth achieved through both APS clients and our small business clients."

"We have returned the overall business to revenue growth and with our expansive client bases, our talented team, and new cloud product launches across all groups, we are very well positioned to continue this trend," he added.

Reckon share price continues to outperform

Following today's gain, the Reckon share price is now up 35% since the start of the year.

This compares very favourably to the ASX 200's gain of 13% year to date.

The post Reckon (ASX:RKN) share price jumps 8% after strong first half profit growth appeared first on The Motley Fool Australia.

Despite starting the day in the green, Reckon shares are now swapping hands for 99 cents – 1.49% less than their previous close.

Reckon's small dip is nothing compared to that of Novatti shares. At the time of writing, the Novatti share price has fallen 9.84% to trade for 58 cents.

Its drop came after Novatti announced its placement and share purchase plan to raise capital to acquire a stake in Reckon was successful.

Quick refresher

Novatti entered a trading halt on Wednesday as it raised capital to fund its growth strategy, part of which was to acquire at least 15% of Reckon's outstanding shares.

The trouble was, Reckon had no idea of Novatti's plans, despite Novatti claiming it had already entered an agreement for the purchase.

Novatti's alleged agreement involved it buying at least 17 million of Reckon's shares for $1 each.

Up until that point, the Reckon share price's 52-week high was 90.5 cents and it had closed the session prior at 79 cents. The news caused the Reckon share price to gain 21% on Wednesday.

Novatti to buy stake in Reckon

Novatti announced today it will be acquiring a 19.9% stake of Reckon, spending around $22.5 million to do so.

Reckon is yet to respond to Novatti's assertion it's acquiring a significant stake in the company.

Novatti said its acquisition of 19.9% of Reckon will benefit it as there's a "tight synergy" between business automation software – Reckon's area of business – and payment processing – Novatti's focus.

Novatti raked in $45 million in its capital raise by offering 72.7 million new shares for 55 cents apiece.

The company will use the remaining $22.5 million to fund its growth strategy, other strategic acquisitions, and to progress its bank licensing application.

Reckon share price snapshot

While Reckon was confused by this week's events, the market took advantage.

The Reckon share price has gained 24% this week – boosting its year-to-date gain to 28%.

It is also 45% higher than it was this time last year.

Reckon has a market capitalisation of around $113 million, with approximately 113 million shares outstanding.

Novatti share price snapshot

Luckily for the the Novatti share price, it has heaps of room to fall before it hits red.

Currently, the Novatti share price is 122% higher than it was at the start of 2021. It has also gained 65% since this time last year.

The company has a market capitalisation of around $156 million, with approximately 244 million shares outstanding.

The post Here's why the Reckon (ASX:RKN) share price has gained 25% this week appeared first on The Motley Fool Australia.

Reckon's dramatic day began before the market opened when Novatti Group Ltd (ASX: NOV) announced it had agreed to acquire at least 15% of Reckon's outstanding shares. However, Reckon quickly declared it had no knowledge of Novatti's plans.

Reckon provides accounting and bookkeeping software, while Novatti is a payment services provider.

Let's take a closer look at the today's ASX soap opera. 

Stock market drama

This morning, Novatti announced it had entered into purchase agreements for the acquisition of at least 15% of Reckon's shares on issue.

However, Reckon responded only hours later, saying it had no idea Novatti planned to become one of its major shareholders.

According to Novatti, it has an agreement to buy 17 million shares of Reckon for $1 each.

Novatti's shares have been frozen today as it undertakes a capital raise. Some of the proceeds are intended to go towards buying a large stake in Reckon.

Peter Cook, Novatti's managing director, said:

We are delighted to have secured a strategic stake in ASX-listed Reckon…

We look forward to successfully completing the capital raising and joining the Reckon share register as a major shareholder.

Reckon, in turn, said it's "monitoring the progress of Novatti's proposed acquisition of their strategic stake".

However, the news that shocked Reckon has excited the market – likely due to Novatti's willingness to pay $1 per share. Reckon shares have spent the last 12 months trading for between 62.5 cents and 90.5 cents apiece.

Reckon share price snapshot

Currently, the Reckon share price has gained around 20% on the ASX in 2021.

It's also 38.68% higher than it was this time last year.

The company has a market capitalisation of around $104 million, with approximately 113 million shares outstanding.

The post The Reckon (ASX:RKN) share price is gaining as an ASX mystery unfolds appeared first on The Motley Fool Australia.

The accounting software provider's shares are rising following the release of the company's results for the first half of the 2021 financial year (H1 FY21).

What did Reckon report?

In this morning's ASX release, Reckon reported net profit after taxes (NPAT) of $9.7 million. That's an increase of 19.8% from H1 FY20.

Earnings before income, tax, depreciation and amortisation (EBITDA) came in at $30.6 million, an increase of 6.6% from the previous corresponding period. Revenue of $75.6 million increased by 0.3%. The company reported its recurring revenue stream is strong, with 85% of revenue now subscription based.

Reckon reduced its debt over the half year to $31.8 million, down $5.8 million, or 15%.

The accounting software provider will pay a 2 US cent final dividend, providing a 6% dividend yield.

Commenting on the results, Reckon's CEO Sam Allert said:

The strong execution of our plan during 2020, which includes a continued focus on investing in cloud-based product development to satisfy client demand, means Reckon is increasingly well placed for growth.

Despite the uncertainty created by the pandemic, Reckon performed well across key financial metrics and in particular continued its positive cloud-based user growth trajectory…

Expanding on the company's growth outlook, Allert added:

We have a clear growth plan for 2021, which includes more mobile apps for our small business client base, and cloud modules for our APS and Elite Accountant client base, whilst leveraging the power of Reckon One to enhance the back office and payroll function for accounting firms and small businesses alike. This strategy compliments our US cloud Practice Management roadmap and provides strong synergies and cross sell opportunities across our global business.

Reckon share price snapshot

It's been a good 12 months for Reckon shareholders, with shares up 29%. And that's despite the plunge in the Reckon share price during the wider COVID-fuelled market selloff last year, which saw shares tumble more than 47% into late March.

Year-to-date the Reckon share price is up 13%. That compares to a gain of 3% on the All Ordinaries Index (ASX: XAO).

The post Why is the Reckon (ASX:RKN) share price on the rise today? appeared first on The Motley Fool Australia.

What does Reckon do? 

Reckon's Business Group provides accounting, payroll, and point of sale software to businesses on a subscription basis. The Practice Management Groups provide practice management software to accounting and legal firms. Running a software-as-a-service (SaaS) business model, Reckon reports that 94% of revenue is now subscription revenue. 

How did Reckon perform? 

Reckon recorded resilient results for 1H20. Group revenue grew by 2% over the prior corresponding period driven by strong growth in the Business Group. The Business Group saw a 6% increase in revenue for the half, with cloud revenue growing strongly. Cloud revenue was up 23% with the number of cloud users reaching 87,000, up 41%. A free payroll app was launched in May and already has over 35,000 users. The paid app launched at the same time has over 2,000 users. Other mobile apps are planned for launch in the second half to continue the cloud/mobile strategy. 

In the accounting Practice Management Group, the customer base showed great stability with Reckon's product entrenched as a product of choice among major accounting firms. New revenue growth was hampered by the pandemic as the division relies on on-site sales and installation activity. It was a similar situation for the legal Practice Management Group – the customer base was stable but new revenue growth was flattened by COVID-19. Nonetheless, Reckon says the sales pipeline remains strong. 

What about the merger? 

Reckon has announced it will by merging its Legal Group with Zebraworks, a United States based start up developing an integration platform to move legal firms to the cloud. The combined business will target the US legal practice management industry, providing Reckon with the opportunity to expand the smallest part of the group. Reckon will own 70% of the merged entity with all Zebraworks IP and other assets rolled into the merged entity. Reckon CEO Sam Allert said, "We have given serious consideration to the future strategy for the Legal Group and we now are excited to see this come to fruition… We look forward to executing on the potential of the merged entity in a substantial global market." 

About the Reckon share price

At the time of writing, the Reckon share price is trading at 74 cents which is an 85% increase on its March low of 40 cents. The Reckon share price is, however, still 3.9% down in year-to-date trading.

The post Reckon share price leaps 9% on half year results, merger news appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.16% to 7,113.70
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.18% to 7,208.30
• AUD/USD at US 67 cents
• Gold at US$1,585.97 an ounce
• Brent Oil at US$57.03 a barrel

One of the best-performing ASX 200 shares today was engineering contractor Monadelphous Group Limited (ASX: MND), its share price rose 5.5% after announcing its result.

Electronic PCB software business Altium Limited (ASX: ALU) saw its share price drop by 7.9% today after releasing its result yesterday.  

Regional bank Bendigo and Adelaide Bank Ltd (ASX: BEN) suffered a share price fall of 5.6% as it came back to market after its result and capital raising.

Fintech company Netwealth Group Ltd (ASX: NWL) reported today, investors sent the share price down over 5% in reaction.

Shopping centre giant Scentre Group (ASX: SCG) was another to report today, its share price fell 1.6%.

The share price of Reckon Limited (ASX: RKN) jumped 13.4% today as the software company announced its result.

Protective glovemaker Ansell Limited (ASX: ANN) suffered a share price fall of almost 3% after reporting its result.

Finally, the share price of supermarket giant Coles Group Limited (ASX: COL) fell 1% after reporting its result.

Here are some of today's top stories:    

• Kogan share price tumbles lower after half year results release
• Bubs share price surges 10% on new Woolworths deal
• Why Holden died – and what investors should learn from it
• 2 tax breaks the ATO is begging you to take

The post ALL ORDINARIES finishes lower Tuesday: 8 ASX shares you missed appeared first on The Motley Fool Australia.

In afternoon trade the software company's shares are up 10% to 74 cents.

Why is the Reckon share price racing higher?

Investors have been buying Reckon's shares after it released its full year results for FY 2019.

According to the release, the company delivered total revenue from continuing operations of $75.4 million in FY 2019. This was flat on the same period a year earlier.

During the 12 months the company posted a 7% increase in Business subscription revenue to $29.6 million and a 7% lift in Legal subscription revenue to $9 million. Their positive performances were offset by a 4% decline Accountant subscription revenue to $22.4 million and a 10% reduction in Other revenue to $14.4 million.

But thanks to a reduction in overheads, the company's EBITDA came in 5% higher at $30.6 million. Reckon's net profit after tax grew at the same rate to $8.1 million. Earnings per share came in at 7.1 cents.

Finally, its operating cash flow was strong at $26.7 million. This allowed the Reckon board to declare a fully franked final dividend of 2 cents per share, bringing its full year dividend to 5 cents per share.

Outlook.

The company's CEO, Sam Allert, said: "Overall 2019 was a solid result for the Group, with encouraging performances from two of our divisions. We have now pivoted the business away from a desktop software company to a cloud first software company and we are excited by our expanded product suite and the product roadmap in 2020 that we believe will provide long-term sustainable revenue opportunities."

And while no guidance was provided for FY 2020, the company advised that its sales pipeline is looking strong. As a result, it plans to invest further into its sales capability this year to take advantage of opportunities.

The post Why this small cap ASX tech share zoomed 10% higher today appeared first on The Motley Fool Australia.

The accounting software company's shares finished the day 11% higher at 72 cents.

Why did Reckon's shares rocket higher?

Investors were scrambling to get hold of the company's shares on Tuesday after it released its half year results.

During the six months to June 30, Reckon delivered EBITDA growth of 4.3% despite its heavy investment in sales and marketing to target growth opportunities.

Management advised that this solid result was driven by the successful execution of plans put in place over the past few years.

During the half the company's Business Group segment experienced a substantial ramp up in the adoption of cloud products. It saw Cloud users increase by 21% to 62,000, with new adds for the first half of 2019 more than double the second half of FY 2018.

The segment continues to transition desktop users to the cloud and is being adversely impacted by the mix effect of a lower ARPU on the cloud products. However, good progress is being made with the transition. At the end of the half 46% of available revenue was from the cloud.

The company's Legal Group segment more than doubled its EBITDA during the half. Management was particularly pleased with this result as it is also transitioning from an upfront sales model to a subscription model. The driver of this result was its scan product which continues to show good potential and is driving new sales opportunities.

Finally, Reckon's Accountants Group segment has stabilised following the aborted sale in 2018 to MYOB Group. And despite competition from MYOB, Xero Limited (ASX: XRO), and Quickbooks, Reckon APS remains the product of choice for large accounting firms with 7 of the top 10 firms in Australia as clients.

Reckon Group's CEO, Sam Allert, said: "The strategy put in place is delivering the desired results, driving growth particularly in the uptake of cloud products. There is no doubt that our execution of a functional and affordable Single Touch Payroll solution has been well-timed to leverage the government's introduction of the new reporting requirement."

Overall, I thought this was a reasonably solid result from Reckon. However, I would still choose Xero ahead of it due to the quality of its operations, robust business model, and international expansion opportunity.

The post Why the Reckon share price rocketed 11% higher on Tuesday appeared first on The Motley Fool Australia.

Following the offer being announced on 8 October 2018, the MYOB share price shot up 19% to close at $3.55. MYOB directors were convinced the offer was in the best interest of shareholders due to an attractive EBITDA multiple (17x FY18) and the near-term investment needed to execute on growth plans.

KKR, which already owns 19.9% of MYOB, will have shareholders vote on the offer in mid to late April. MYOB listed on the Australian Stock Exchange in 1999. If approved by shareholders, MYOB's transition off the ASX boards will end a 20-year run on the bourse.

The MYOB results for the year ending 31 December 2018 (announced on 21 February 2019) showed:

• Revenue up 7% to $445 million
• EBITDA flat at $190 million
• Net profit after tax up 2% to $104 million

What are the consequences of new MYOB ownership?

Should MYOB shareholders agree to the sale, KKR's ownership could go in two directions.

Firstly, if KKR invests capital and attention, the business may execute an existing strategy and perhaps beyond. There are several possible value-add synergies in the KKR portfolio, particularly in credit provision (Pepper Group) and digital services (Go Daddy). In addition, MYOB's ambitions have been domestic rather than global. That could feasibly change with a new perspective from KKR.

Alternatively, private equity's more ignominious reputation for limited investment and value extraction, could also feasibly play out.

Daylight appearing in a competitive market

In addition to MYOB potentially entering the KKR stable, smaller competitor Reckon has publicly moved away from direct competition with its much larger antagonists. Following falling revenues and citing competition and the disruption caused by a failed MYOB acquisition, Reckon Limited (ASX: RKN) will offer white label solutions and focus on the healthcare vertical.

With both MYOB and Reckon experiencing potentially disrupted focus, Xero Limited (ASX: XRO), the first mover in cloud-based accounting software for small and medium business, would have the opportunity to further execute on its early lead.

Foolish takeaway

If the MYOB acquisition does go ahead, Xero seems to be at least a temporary winner, and maybe a permanent one. If MYOB doesn't execute on the existing growth strategy under the auspices of KKR, Xero will have a chance to sweep the local region. Alternatively, if Reckon provides a guide, calendar 2019 could be a tough year for MYOB sales even if the long term looks rosier as a result.

2019 could be the year that Xero gains decisively in Australia-New Zealand.

The post MYOB shares were lower on Friday: Takeover offer goes to shareholders appeared first on The Motley Fool Australia.

The company increased its underlying net profit after tax (NPAT) by 3% YoY to $8.8 million despite a 6% decrease in revenue to $75.4 million during the year. The major driver was the legal (-5%) and other revenue (-23%) line items which saw Group EBITDA decline by 2% to $30.6 million.

Cloud revenue was up 8% in FY18 with ~54,000 cloud users, while management noted the continued reduction in desktop revenue due to a user-led transition towards the cloud.

The company was busy innovating during the year, launching its point-of-sale (PoS) product in 2018 and acquiring online medical practice management product, Better Clinics, in July 2018.

The group increased net assets by 19.09% to $15.60 million despite a ~$3.00 million decrease in total assets during the year. The group repaid $6.04 million of borrowings which saw a net cash outflow from financing activities of $9.43 million for the year while operating cash flow increased by $1.2 million to $10.88 million after the de-merger of its Document Management division in 2017.

In a big win for shareholders, the Board approved the reinstatement of the company's dividend policy, paying out a fully-franked $0.03 per share in September 2018, equating to a dividend yield of around 4.50%. The stock saw a steady increase in its dividend from $0.04 per share in 2006 to a peak of $0.09 (60% franked) in 2015, but business profitability saw this cut in 2016 and 2017.

The stock was up 6.06% yesterday ahead of the earnings announcement and I suspect the $0.03 dividend may not be enough to keep that price high. While the 4.48% year-to-date gain looks good on paper, in the context of a 55.47% decline since January 2018, it's clear that this is more temporary speculation than good fundamentals.

Foolish takeaway

While Reckon has posted a decent result this morning, it's a stock that has continued to slide since 2016 and is trading at a P/E multiple of 36x. The company operates in a competitive industry and has found it difficult to keep pace with technological advances.

While today's result should mitigate huge losses on the market, I'd be steering clear and looking at other Information Technology stocks including Appen Ltd (ASX: APX) or Altium Ltd (ASX: ALU).

The post Why the Reckon share price is flat on underlying NPAT up 3% appeared first on The Motley Fool Australia.

Some even fell to 52-week lows or worse. Three shares that reached this unwanted milestone are listed below. Here's why they are on the decline:

The BWX Ltd (ASX: BWX) share price fell to a 52-week low of $3.75 yesterday after the personal care products company advised that Bain Capital would not be going ahead with its $6.60 takeover offer after 12 weeks of due diligence. This decline means the shares of the company behind the Sukin skincare range are now trading at a reasonable 19x earnings. While I thought its recent full year result was a touch underwhelming, if it returns to form in FY 2019 then BWX's shares could prove cheap at these levels.

The Japara Healthcare Ltd (ASX: JHC) share price sank to an all-time low of $1.32 on Monday after Prime Minister Scott Morrison announced a royal commission into Australia's aged care system. This is the latest blow for an industry struggling to live up to the market's expectations and I'm not surprised to see Japara and its peers tumble lower. While Japara's shares are arguably dirt cheap now, I intend to stay clear of its shares until after the royal commission. As we saw with the banks, such inquiries can weigh heavily on investor sentiment and drag shares lower and lower.

The Reckon Limited (ASX: RKN) share price tumbled to a decade-low of 80 cents yesterday. This accounting software company has seen its shares fall significantly this year after the takeover by MYOB Group Ltd (ASX: MYO) was blocked by the ACCC. I suspect the market is struggling to see how Reckon can successfully compete with its larger rivals in a highly competitive market. As a result, I'm not expecting to see a meaningful recovery in its share price any time soon.

The post 3 ASX shares at 52-week lows: Time to buy? appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.30% to 6,253.90
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.29% to 6,340.80
• AUD/USD at US 74 cents
• Gold at US$1,213.04 an ounce
• Brent Oil at US$74.17 a barrel

The best-performing ASX 200 share today was Beach Energy Ltd (ASX: BPT), the resource company got a boost from rising oil prices as it rose 4.7%. Santos Ltd (ASX: STO) was another to go up thanks to oil prices, it went up 2.8%.

One of the best performers today was Reckon Limited (ASX: RKN), the accounting software company went up 15.1% after reporting its FY18 result.

However, Eclipx Group Ltd (ASX: ECX) dropped a whopping 40.8% after issuing a profit downgrade.

The share price of packaging giant Amcor Limited (ASX: AMC) fell 5.8% after it returned to trade after announcing its acquisition and that it will be dual-listed in the US.

Infant formula business Bellamy's Australia Ltd (ASX: BAL) continues to fall, it dropped 4.5% today to $10.62.

Livetiles Ltd (ASX: LVT) climbed another 9% today after announcing further partnership news with Microsoft. Perhaps it will turn into an acquisition target for Microsoft at this rate?

Education business Navitas Limited (ASX: NVT) shares climbed 2.6% after revealing its FY18 result.

Finally, financial company IOOF Holdings Limited (ASX: IFL) fell 1.9% after reporting its FY18 financials.

Here are some of today's top stories:

• Three things you need to know about the RBA's interest rate decision today
• Why Neuren Pharmaceuticals Ltd (ASX:NEU) shares have been smashed today
• One of Australia's best investors shares his investing tips
• Can Transurban Group's (ASX:TCL) share price outperform on its profit uplift?

The post ALL ORDINARIES finishes lower Tuesday: 9 shares you missed appeared first on The Motley Fool Australia.

Four shares that have defied the market and pushed higher today are listed below. Here's why they are surging higher:

The Amaysim Australia Ltd (ASX: AYS) share price has pushed 6% higher to 98.5 cents after the telco company was tipped as a takeover target for Optus owner Singtel. According to the AFR, Singtel is believed to be in the early stages of exploring a takeover. Neither party has commented on the speculation but it seems some investors are betting on an approach coming.

The Macquarie Telecom Group Ltd (ASX: MAQ) share price has surged 14% higher to $24.05 after revealing plans to expand its data centre capacity significantly. In addition to this, management upgraded its guidance for FY 2018. It now expects EBITDA to be in the range of $47 million and $48 million compared to previous guidance of $44 million to $46 million. In FY 2017 Macquarie Telecom posted EBITDA of $40.3 million.

The New Hope Corporation Limited (ASX: NHC) share price has risen almost 10% to $3.50 after agreeing to purchase a 40% stake in the Bengalla coal project owned by Wesfarmers Ltd (ASX: WES). New Hope will pay Wesfarmers a total of $860 million, bringing its stake in the project to 80%. Taipower and Mitsui equally share the remaining 20% stake.

The Reckon Limited (ASX: RKN) share price has zoomed 15% higher to 99 cents after releasing its half-year results. The accounting software company reported underlying EBITDA growth of 3% and underlying net profit after tax growth of 9%. This has allowed the board to approve the re-instatement of its dividend policy. As such, it has declared a fully franked interim dividend of 3 cents per share which will be paid to shareholders on September 4.

The post Why these 4 ASX shares have surged higher today appeared first on The Motley Fool Australia.

It is expected to move up a gear this week with a wide range of results scheduled for release. Here is what to expect from week two of earnings season:

Tuesday.

Things kick off again on Tuesday with results from honey producer Capilano Honey Ltd (ASX: CZZ), education services provider Navitas Limited (ASX: NVT), accounting software company Reckon Limited (ASX: RKN), and toll road giant Transurban Group (ASX: TCL).

In respect to the latter, Transurban is expected to report net profit after tax of $456.14 million according to the Bloomberg consensus estimate.

Wednesday.

On Wednesday the results of embattled financial services company AMP Limited (ASX: AMP), banking giant Commonwealth Bank of Australia (ASX: CBA), and sports betting and lotteries company Tabcorp Holdings Limited (ASX: TAH) are scheduled to be released.

According to a note out of Goldman Sachs, the broker has forecast Commonwealth Bank to deliver a cash profit down 5.9% on the prior corresponding period to $9,089 million. Goldman has forecast a final dividend of $2.30 per share versus the Bloomberg consensus estimate of $2.25 per share.

Thursday.

On Thursday energy company AGL Energy Ltd (ASX: AGL), casino and resorts operator Crown Resorts Ltd (ASX: CWN), investment company Magellan Financial Group Ltd (ASX: MFG), and insurance giant Suncorp Group Ltd (ASX: SUN) are pencilled in to release their results.

The four companies are expected to report profits of $1,310 million, $408 million, $209.8 million, and $990.6 million, respectively.

Friday.

Week two finishes with results from retail park-focused property group Aventus Retail Property Fund (ASX: AVN), baby products retailer Baby Bunting Group Ltd (ASX: BBN), and real estate investment trust Charter Hall Long WALE REIT (ASX: CLW).

While the market is expecting a weak result from Baby Bunting due to the negative impact of clearance sales from closing competitors, a lot of focus will be on how FY 2019 has started and management's outlook.

The post Earnings season week two preview appeared first on The Motley Fool Australia.

The asset write off is because Xero has decided to team up with payroll platform Gusto to offer payroll service platforms to customers across all 50 U.S. states.

In effect Xero will halt attempts to develop its own in-house U.S. payroll product as it's not worth the financial cost or all round effort, when a partner like Gusto offers a potential short cut to achieving the same goal.

Xero has invested heavily in winning market share in the giant and complex U.S. market, but as at March 2018 had only signed up 132,000 customers. This is a respectable result, but perhaps not the return on investment the group had hoped for especially in the context of its runaway success in Australia, New Zealand and the United Kingdom.

Xero has found the U.S. market harder than others as each state has different payroll tax requirements, while the important sales channel of small business accountants has been harder to harvest.

Moreover, the dominant small business accounting platform provider in the U.S, Quickbooks operated by Intuit, is a deep-pocketed and entrenched leader that has a strong product offering. In Australia, Xero has other rivals including Myob Group Ltd (ASX: MYO) and Reckon Limited (ASX: RKN), but has been able to establish itself as a popular market leader.

The software-as-a-service business now has more than 1.4 million subscribers across 180 countries and given its product offering is in the online accounting space it's reasonable to assume it has a lot of growth ahead of it yet.

The post Xero Limited changes tack in the U.S. appeared first on The Motley Fool Australia.

Three shares that tumbled to 52-week lows are listed below. Are these beaten down shares in the bargain bin?

The Pendal Group Ltd (ASX: PDL) share price fell to a 52-week low of $8.94 on Wednesday. Investors have been heading to the exits in their droves after the fund manager, formerly known as BT Investment Management, released its latest funds under management update. As well as coming under pressure from the weak update, Westpac Banking Corp (ASX: WBC) could be in the market selling its remaining stake. When the dust settles I think there could potentially be a buying opportunity, but I would wait for confirmation that the banking giant has offloaded its holding first.

The Reckon Limited (ASX: RKN) share price continued its decline and touched on a 52-week low of 90 cents yesterday. This accounting software company has seen its shares fall a massive 43% since the turn of the year after the takeover by MYOB Group Ltd (ASX: MYO) was blocked by the ACCC. Unfortunately, I can't see Reckon successfully competing with its larger rivals in the highly competitive market. Because of this, I don't expect to see a recovery in its share price any time soon.

The SKY and Space Global Ltd (ASX: SAS) share price finished the day at a 52-week low of 7.8 cents on Wednesday. Although the satellite company has announced a number of promising memorandum of understandings recently, investors appear to be wisely waiting to see if they turn into fully fledged contracts before acting on them. While I think SKY and Space Global has created a very excited technology, its market capitalisation is already pricing in a lot of success that is far from guaranteed. One to watch, but not one to buy just yet in my opinion.

The post Is it time to buy these beaten down ASX shares? appeared first on The Motley Fool Australia.