Shareholders of Brisbane-based technology business Technology One Limited (ASX: TNE) welcomed the release of its half-year financial report to the ASX today, showing a 10% rise in its interim dividend.

TechnologyOne is Australia’s leading enterprise software company, founded in 1987.

For the six-month period to 31 March 2018, TechnologyOne revealed a 6% rise in revenue to $120 million and a net profit of $8.1 million, up 1% on the prior corresponding period.

“This half TechnologyOne has delivered record revenue, record licence fees and continuing very strong growth in our cloud business,” TechnologyOne CEO Edward Chung said. “TechnologyOne is on track to deliver profit growth of between 10% to 15% over the full year.”

Mr Chung said the group’s cloud and SaaS businesses continued to power results during the half.

“Our SaaS business continued to grow very fast with Annual SaaS Platform Contract Value (ACV) up
51% to $31m per annum, and is on track to reach $143m per annum in the next 4 years,” Chung added. “Our cloud also delivered a profit of $3m, up 217%.”

TechnologyOne expects the cloud business to report a $7 million profit for the full-year, up from prior expectations of $5m.

TechnologyOne’s board of directors declared a partially franked interim dividend of 2.86 cents per share, payable June 15th.

Looking ahead, the company will invest at least $54 million in research and development for the full year. “This is a significant expenditure for us, and the benefits will be felt by our customers as we roll it out in the future.”

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