Business software company TechnologyOne (ASX:TNE) has estimated it will record a pre-tax 1H profit of $6.4 million, a 30% year-on-year increase.
The company said its unaudited preliminary results indicated that contract wins in the education, utilities and public sector had helped buoy profits.
“The first half result has (also) been achieved through an increase in licence fees and other revenue, coupled with our cost control initiatives,” TechnologyOne executive chairman Adrian Di Marco said.
But he added that the operating environment remains challenging, with the company facing aggressive tactics from the competition, as well as protracted investment cycles and contract negotiations.
“It is not possible to simply take the half-year result and extrapolate it forward to derive a full-year result,” Di Marco said. “Clearly our first half results have been very strong, but we do not necessarily expect the strong profit momentum in the first half to continue into the second half.”
That said, the company is on track to deliver profit and revenue growth, Di Marco said.