Strong performance results for the year ending December 31, 2010, were announced during the Chairman’s speech for the Annual General Meeting of Reckon Limited (ASX: RKN).
The company’s operating revenue was up by six per cent to $90.1 million while its EBITDA improved by 20 per cent to $30.2 million.
Reckon’s conservative approach to acquisitions and looking for deals that deliver returns helped push its NPAT up 27 per cent to $17.2 million while earnings per share were up by 25 per cent to $0.105 per share.
The Business Division experienced revenue growth of 12 per cent thanks to strong performance from retail and enterprise sales, which included its online offering QuickBooks Hosted by Reckon Online.
While the nQueue Division generated revenue growth of 29 per cent, the Professional Division only posted ordinary performance.
Reckon reiterated its focus on maintaining organic growth from its recurring revenue client base in all divisions, and the outlook for 2011 is already showing signs of renewed customer interest in the wake of the Global Financial Crisis.
The company hopes to further gain market share, and expand its product range and roll-out to existing customers by going after new and exciting opportunities in the Software-as-a-Service (SaaS) markets, such as a strategic partnership with Melbourne IT (ASX: MLB) that was announced on May 4.
Melbourne IT’s wide range of products in the IT services area, such hosting, email exchange servers, and domain security, were highlighted as the main reason for investment in the company, as they are expected to complement the products and services Reckon currently offers to small businesses.