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Objective Corporation (ASX:OCL) - CEO, Tony Walls (left) and Ben Hobby (right)
CEO, Tony Walls (left) and Ben Hobby (right)
Source: Objective Corporation
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  • Software developer Objective Corporation (OCL) trades slightly higher on the ASX today after announcing increased revenue and profits in its latest unaudited half-yearly report
  • Objective grew revenue by 13 per cent compared to the same time the year before to $52.7 million, while EBITDA increased by 28 per cent to $15.1 million
  • The bolstered earnings drove a35 per cent increase in net profit after tax to $9.8 million for the half-year
  • With around $44 million in the bank at the end of December, the company says the outlook for the rest of the 2022 financial year remains “very positive”
  • Shares in Objective Corporation are up 5.31 per cent to $17.84

Software developer Objective Corporation (OCL) is trading slightly higher on the ASX today after announcing increased revenue and profits in its latest unaudited half-yearly report.

For the six months to the end of December 31, 2021, Objective Corporation tabled $52.7 million in revenue — an increase of 13 per cent compared to the same time period in 2020.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew 28 per cent year-on-year, from $11.8 million over the half-year period in 2020 to $15.1 million in 2021.

The bolstered earnings drove an increase in net profit after tax, which grew by 35 per cent to $9.8 million compared to the $7.2 million over the previous corresponding period.

What’s more, this all comes despite an increase in research and development (R&D) expenditure over the half-year.

Objective CEO Tony Walls said the strong results for the first half of the 2022 financial year came despite “less than ideal” operating conditions for the business.

“The strong financial performance in 1HY2022 reflects the ongoing dedication of every member of the Objective team to deliver outstanding results, the enduring resilience of our business model, and the strength of the Objective brand in our target markets,” Mr Walls said.

“Our products remain central to supporting our customer’s digital transformation journey and, in many cases, we are only in the early stages of seeing the positive impact on customers and our resulting revenue.”

Objective’s software is designed to help government and financial services organisations shift to fully digitised operations.

Objective leverages programs frequently used by public services sector organisations such as Microsoft Teams and OpenGov while also developing programs to help with content management, document protection, building plan assessment, content management, and more.

What’s next for Objective?

With around $44 million in the bank at the end of December, Objective said it was in a position to pursue non-organic growth and progress opportunities to create “genuine long-term value”.

“The outlook for the remainder of FY2022 remains very positive, reflecting the progress we made in 1HY2022 and the momentum we have carried into 2HY2022,” Mr Walls said.

“Objective Regtech continues to perform particularly strongly as we realise the results of our sustained investment in product innovation and go-to-market capacity since the team joined the Objective family.”

Shares in Objective Corporation were up 5.31 per cent to $17.084 at 2:02 pm AEDT. The company has a $1.67 billion market cap.

OCL by the numbers
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