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TECHNOLOGY ONE LIMITED (TNE)

TECHNOLOGY ONE LIMITED (TNE)

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General Information
Company Name: Technology One Limited
Stock Code: TNE
Website: www.technologyonecorp.com
GICS Sub-Industry: Application Software
Market Cap ($M): 363
Equiv. Shares (M): 305

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 1.190 $ 1.200 $ 1.200 $ 1.185 $ 1.200 163,710 $ -0.010  -0.833 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 22nd May 2012
12 Month Target Price (average): $1.24
Brokers Surveyed: 4

Company Overview

Business Description:
Technology One Limited (TNE) is an end-to-end enterprise software provider and consultant, servicing business, government, financial services, health and community, education, and utilities sectors. Software is aimed to have 'out-of-the-box' functionality with the flexibility to forgo code customisation. Products include financials, HR & Payroll, supply chain and business intelligence. TNE also offers custom software development services for large scale, purpose built applications.

Strategy Analysis:
TNE's strategy is to reinvest in its business to develop a new software platform compatible with current trends in mobile connectivity and cloud computing. TNE will also double its sales team to push its current products. Technology One reported NPAT up 14.11% to $20.33m for the year ended 30 September 2011. Revenue from ordinary activities were $156.74m, up 15.33% from last year. Diluted EPS was 6.54 cents compared to 5.8 cents last year. Net operating cash flow was $21.22m compared to $31.58m last year. The final dividend declared was 3.16 cents, taking the full year dividend to 6.12 cents compared with 5.7 cents last year.


Financial Summary
Year to Sep NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 25.1 8.1 10.7 14.7 6.7 5.6 100.0
2012  F 22.7 7.3 11.6 16.3 6.2 5.2 100.0
2011  A 20.3 6.5 12.8 15.5 4.6 4.6 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Technology One (TNE) $366 M 0.1275 0.1147 0.1385 18.3486 16.4609 14.4578 0.0510 0.0542 0.0559

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
TNE 1.49 16.9 5.28 1.34 2.38
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.76 11.6 1.55 1.53 1.00

Directors
Name Position Start Date
Mr Adrian Di Marco Chairman,Chief Executive Officer 16 July 1987
Mr Edward James Chung Executive Director (other) 14 May 2008
Mr Ronald (Ron) McLean Non-Executive Director (other) 08 December 1999
Mr John Mactaggart Non-Executive Director (other) 16 July 1987
Mr Richard Charles Anstey Non-Executive Director (other) 02 December 2005
Mr Kevin Phillip Blinco Non-Executive Director (other) 01 April 2004

Management
Name Position
Rodney Hooper Company Secretary
M Culverson Operating Officer Consulting Services
R Down Operating Officer New Business Development
M Harwood Operating Officer Products & Solutions
P Cameron Operating Officer Research & Development
R Phare Operating Officer Sales & Marketing

Substantial Shareholders
No substantial shareholders registered

Calendar of Events
Date Event
20 May 2013 Report (Interim)
07 January 2013 Report (Annual)
19 November 2012 Report (Prelim)
22 June 2012 Div Pay Date
08 June 2012 Books Close
04 June 2012 Div Ex Date
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