Tech Titans Triumph: TechnologyOne and Brickworks Limited Showcase Stellar Performances

Highlights

• TechnologyOne Ltd (ASX: TNE) Celebrates Strong FY23 Results with Impressive Growth
• Brickworks AGM (ASX: BKW)  Highlights Strong Financials, Dividend Growth, and Safety Commitments

FY23 Highlights:

• Total Revenue Soars: TechnologyOne reported a remarkable 19% increase in total revenue, reaching $441.4 million for the 12 months ending September 30, 2023.
• R&D Investment: The company invested $112 million in research and development (R&D), demonstrating a commitment to innovation. This figure represents a substantial 21% increase and constitutes 26% of the total revenue.
• Cash Flow Excellence: TechnologyOne showcased strong financials with cash flow generation surging by 36%, reaching $104.6 million.
• Profitability: Net profit after tax (NPAT) witnessed a significant 16% growth, totaling $102.9 million, surpassing initial guidance.
• Dividend Boost: Shareholders were rewarded with a special dividend of $0.03 per share, contributing to a total dividend of $0.1952 per share—an impressive 15% increase.
• Net Revenue Retention: The company boasted an outstanding net revenue retention rate of 119%, exceeding its long-term target of 115%. This metric reflects robust organic growth, with existing clients generating 119% of the previous year's revenue.
• Client Base Growth: TechnologyOne's client retention rate stands at approximately 99%, showcasing the highest retention rate in the industry.
• Average ARR Growth: The average annual recurring revenue (ARR) per customer has surged from $100,000 in FY12 to nearly $400,000 in FY23.
• International Expansion: The UK ARR experienced a notable 52% increase, reaching $26.5 million, while UK profit soared by 54% to $3.7 million.
• Future Outlook: TechnologyOne is on track to surpass $500 million in annual recurring revenue (ARR) by FY25, a year ahead of its medium-term guidance.

Investors are eyeing TNE shares as the company demonstrates resilience, growth, and a strategic vision that positions it as a leading player in the SaaS ERP software domain.

Brickworks AGM Highlights Strong Financials, Dividend Growth, and Safety Commitments

In a noteworthy Annual General Meeting (AGM), Brickworks Limited (ASX: BKW) showcased robust financial performance, strategic initiatives, and an unwavering commitment to workplace safety.

Key Points Unveiled at the AGM:

• Financial Overview: Despite lower earnings compared to the previous year, FY23 recorded an underlying profit of $508 million.
• Long-Term Asset Growth: Brickworks remains dedicated to long-term asset growth, with net tangible assets in Property Trusts increasing by a substantial $520 million.
• Dividend Growth: Shareholders will receive a fully franked final dividend of 42 cents per share, bringing the full-year dividend to 65 cents per share—a commendable 2% increase. This marks the tenth consecutive year of increased dividends and 47 years of dividend maintenance or growth.
• Shareholder Returns: Brickworks highlights a strong history of total value creation, delivering shareholder returns of 12.2% per annum for 25 years. A $1,000 investment in Brickworks in 1998 would be worth almost $17,700 at the end of FY23.
• Board Changes: Joel Fitzgibbon appointed as an independent Non-executive Director, effective from January 2023. Michael Millner, serving on the Board for 25 years, will retire after today's AGM.
• Strategic Initiatives: Building Products is nearing completion of a major capital investment program, including a new brick plant at Horsley Park. The Board ensures optimal capabilities and composition for long-term success.
• Workplace Safety: Progress in improving workplace safety, with a decrease in the total recordable injury rate to 10 in FY23. A tragic fatal accident in July underscores the commitment to achieving zero harm across operations.
• Financial Performance: FY23 revenue of $1.182 billion, up 8% from the prior year, driven by increases in Building Products. EBITDA from continuing operations was $784 million, down 26%, but the second-highest recorded earnings.
• Business Portfolio: Brickworks boasts a diversified portfolio, including interests in WHSP, a property division, and Building Products in Australia and North America. The net inferred asset backing at the end of the financial year was around $5.7 billion.
• Future Outlook: The company remains optimistic about its future growth and sustainability efforts, emphasizing its commitment to delivering value to shareholders.

Investors are closely monitoring BKW as it showcases financial resilience, dividend growth, and a strategic approach that positions it for future success in the construction and building materials sector.

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