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The accounting software provider has now entered the US legal market following the announcement of a recent merger, as it posts a 1.5 per cent profit growth for the first six months of the year.
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Reckon unveils merger off the back of steady results
11 August 2020
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Reckon has announced the merger of its legal group with Zebraworks, a US-based practice management software provider aimed at mid-sized law firms.
The deal will see Reckon own 70 per cent of the merged entity, called Nqueue Zerbraworks, with Reckon having committed $US3 million to funding the entity’s growth up to the end of 2023, with an option of a further $US2 million if required.
The announcement comes as Reckon released its results for the six months to 30 June, revealing a 1.5 per cent growth in net profit to $5.4 million.
Revenue also grew by a similar figure, rising to $39.8 million.
Subscriptions now account for 95 per cent of the group’s revenue, with the business attributing its steady results to a 41 per cent increase in cloud users, delivering a 23 per cent growth in cloud revenue.
Reckon also noted that while new revenue growth for its Accountants Group division was hampered by COVID-19, its existing customer base continues to show stability.
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“We have experienced an eventful six months and are seeing the fruits of a clear, multi-year strategy — one which has shaped a business with the resilience, agility and expertise to weather storms while continuing to reliably deliver growth and profitability for shareholders,” said Reckon chief executive Sam Allert.
“The next six months and beyond will be a critical time as the world grapples with continued economic uncertainty, but we’ve shown that our solid fundamentals, coupled with our vision, can and does continue to deliver through tough times.”
Mr Allert also said that growth in the first half of 2020 was underscored by its decision to merge with Zebraworks, which he believes will help grow Reckon’s footprint in the US legal marketplace.
“We have given serious consideration to the future strategy for the Legal Group and we now are excited to see this come to fruition,” he said.
“We have seen the success of our focus on our new products, scan and print workflow, and it is exciting to be adding a very experienced team, with a new cloud practice management suite, as well as creating further distribution for our APS cloud modules.
“We look forward to executing on the potential of the merged entity in a substantial global market.”
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