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MYOB has announced full year results for the 12 months ended 31 December 2015, with a number of significant measures differing markedly from prospectus forecasts.
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MYOB reveals 2015 results
25 February 2016
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The accounting software provider, which last year undertook the largest technology IPO in the history of the ASX, has this morning announced 10 per cent pro forma revenue growth to $328 million, easily beating the prospectus forecast of $323 million.
The company also announced 19 per cent pro forma EBITDA growth to a record $153 million (prospectus forecast: $151 million) and 22 per cent pro forma NPATA growth to $86 million (prospectus forecast: $85 million).
Pro forma financials exclude the one-off costs associated with the IPO, restate the historical capital structure to that now in place post-IPO and remove other one-off costs.
MYOB will pay a dividend of 5.0 cents per share.
Justin Milne, chairman of MYOB, said he was thrilled by the results and the returns to shareholders.
“On the back of strong financial results and significant cash generation, the board is pleased to declare a final dividend of 5.0c per share. In a world where the market often divides stocks into 'growth stocks' and 'dividend stocks', MYOB offers both.”
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Tim Reed, chief executive officer, also shared his pleasure in the company’s financial performance.
“2015 saw MYOB return to the ownership of public investors, undertaking the largest technology IPO in the history of the ASX. We enter 2016 with great momentum. We believe the accounting industry is transforming, with transaction processing, compliance and advisory services converging into one connected business process. We see this transformation and are preparing by developing a MYOB single platform, which will offer accountants, bookkeepers, small businesses and their consultants unparalleled ability to drive business success.”
Detailing the results, the company revealed 63 per cent of total revenue now comes from SME solutions with SME revenue was up 14 per cent to $205 million.
Practice solutions now account for 25 per cent of total revenue, up just 3 per cent to $81.7 million. In April 2015, MYOB launched the MYOB Portal, the company's first online practice module, which by the end of 2015 was being used by more than 1,000 practices and 16,000 clients, making it the most successful launch of a Practice Solutions product in MYOB history.
Enterprise solutions make up just 13 per cent of total revenue, up 4 per cent to $41 million.
Looking forward, June 2016 pro forma Prospectus guidance was reaffirmed with revenue growth expected to be in line with historical trends, EBITDA margin expected to be maintained within the previously guided 45 per cent-50 per cent range and it is expected that for 2015-16 R&D will be in the upper half of the 13 per cent to 16 per cent range.
Dividend payout ratio for 2015-16 expected to be between 60 and 80 per cent of NPATA (dividends are likely to remain unfranked until at least the financial year ending 31 December 2017).
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