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Objective Corp share price higher on strong half year update

James Mickleboro
ASX tech stocks

The Objective Corporation Limited (ASX: OCL) share price is pushing higher on Friday.

In morning trade the technology company’s shares are up almost 2% to $5.90.

This latest gain means its shares are now up 110% since this time last year.

Why is the Objective Corp share price pushing higher?

Investors have been buying the company’s shares after it released an update on its performance during the first half of FY 2020.

According to the release, Objective Corp’s strong growth has continued in FY 2020.

It expects to report revenue of $33.2 million during the first half, up 13.7% on the prior corresponding period.

Objective Corp’s annual recurring revenue (ARR) has grown at an even quicker rate. At the end of December its ARR stood at $54.1 million, which represents a 28% increase on the end of December in 2018. Management advised that 75% of its revenue is now classed as recurring, up from 71% a year earlier.

Also growing strongly was its operating profit and EBITDA. Operating profit grew 24% over the prior corresponding period to $5.8 million, whereas EBITDA lifted by 20% to $6.8 million.

This left the company with a cash balance of $34.1 million at the end of half, which was up 16% from $29.3 million a year earlier despite the acquisitions of Alpha Group and Master Business Systems and dividend payments of $5.6 million.

What is Objective Corp?

Objective Corp creates easy to use information and process governance solutions that enable organisations to advance their own digital transformation.

These solutions turn the imperative of compliance, accountability, and governance into an opportunity to streamline business processes and deliver the innovative services that customers expect.

Whilst it has a heritage in Enterprise Content Management (ECM), its expanded solutions extend governance across the modern workplace. It believes this underpins information, processes and collaborative workspaces.

The post Objective Corp share price higher on strong half year update appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020