Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Objective Corporation (ASX:OCL) share price on watch: Big HY21 profit growth revealed

The Objective Corporation Limited (ASX:OCL) share price will be on watch today after reporting large growth in its FY21 first half result. 

The Objective Corporation Limited (ASX: OCL) share price will be on watch today after reporting large growth in its FY21 first half result.

Strong first half of FY21

Objective Corporation has released a trading update today based on unaudited management accounts for the first half of FY21.

Revenue is expected to be 40% higher to $46.5 million. EBITDA (EBITDA explained) is expected to show growth of 74% to $11.8 million. Net profit after tax (NPAT) is expected to show an increase of 70% to $7.2 million.

Annual recurring revenue (ARR) went higher by 30% to $70.1 million. Perpetual right to use (upfront licence) fees continued to decline as a percentage of revenue, representing only 3.6% of total revenue (it was 7.4% in the first half of FY20).

The research & development (R&D) investment – which is 100% expensed – went higher by 45%. The company said that significant investing in innovation remains at the heart of its economic model. The R&D investment represented 24% of revenue.

The company finished the half-year with a cash balance of $27.7 million.

Objective Corporation said that its suite of products will be important for helping customers adjust to the new world.

Management comments

Objective CEO Tony Walls said: “Since 1 July, much energy and focus has gone into the successful integration of Itree with the Objective family; during which time we were also successful with an unprecedented number of new Regworks customers with a contract value of approximately $7.5 million. 

Another significant achievement was the go-live of the cloud Objective ECM implementation at the City of Gold Coast for 4,000 users. This milestone on such a major project for Objective was a testament to the commitment of both organisation’s people, during a period in which we worked from home and leveraged our skilled team from around the globe.

The outstanding results outlined in this trading update speak for themselves and demonstrate that we continue to build a durable business with significant underlying strength.”

Summary thoughts

Objective Corporation is a quality business and has a lot of growth potential. However, it’s also priced highly in terms of its price/earnings ratio. But most good businesses are priced highly these days. I think it could be worth a small buy today, and more accumulation on price weakness or further proof that its strategy is working.

Other ASX growth shares that are doing well could be worth a place in your portfolio such as Pushpay Holdings Ltd (ASX: PPH).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content