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- Software developer Objective Corporation (OCL) reports increased revenue and annual recurring revenue for financial year 2021
- OCL grew revenue by 36 per cent to $95.1m and annual recurring revenue by 31 per cent to $74.2m, compared with the prior period
- It also invested a record $23 million in research and development, reflecting a focus on continued innovation
- Reporting a cash balance of $48.4 million at June 30 this year, CEO Tony Walls expects to see further growth for OCL in financial year 2022
- On Friday Objective shares have closed 1.69 per cent down at $17.30
Objective Corporation (OCL) has reported increased revenue and annual recurring revenue for financial year 2021.
In an unaudited trading update on Friday, the public sector software solutions provider advised investors it had seen a 36 per cent rise in revenue to $95.1 million in FY21, compared with the previous year’s $70 million.
Likewise, the company’s annual recurring revenue grew by 31 per cent from $56.6 million in FY20 to $74.2 million in the same period.
Following suit, OCL’s earnings before interest, tax, depreciation and amortisation also grew to $25.6 million — up 49 per cent from $17.2 million recorded in the prior fiscal year.
All up, the company said FY21 represented a record year for investment in research and development (R&D), with its $23 million contribution reflecting the importance of continued innovation.
However in keeping with OCL’s long-term accounting policies, the company specified no R&D expenditures had been capitalised.
Following the update, Objective CEO Tony Walls said he expected to see a continued martial lift in revenue and profitability in financial year 2022.
“Our investment in innovation will deliver important product releases for customers, including Objective Build, Objective Nexus, Objective ECM 11 and Objective RegWorks iQ which, in addition to further investment in our existing product suite, will underpin new customer acquisition across all business lines and expand opportunities for existing customers,” he said.
OCL continues to seek what it considers “reasonably valued” acquisitions that offer further product and market reach capabilities.
The company’s unaudited cash balance stood at $48.4 million as at June 30 this year.
Shares closed 1.69 per cent down at $17.30 on Friday.
