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RECKON LIMITED — Capital/Financing Update 2018
Jun 13, 2018
65708_rns_2018-06-13_39f84b82-3f4d-47f9-bc6d-b96016ae4d81.pdf
Capital/Financing Update
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ASX Announcement
14 June 2018
PERFORMANCE OF ACCOUNTANTS PRACTICE MANAGEMENT GROUP
After the MYOB Group announced its withdrawal from its purchase of the Accountants Practice Management Group, Reckon Limited has received requests from some shareholders to clarify the results of the continuing business of the company.
We attach the following summary of results for the years ended 31 December 2017 and 31 December 2016 by segment inclusive of the Accountants Practice Management Group. The half year results, which we anticipate announcing in August, will also be consistent with this format.
The Accountants Practice Management Group continued to enjoy growth in subscription revenue in 2017, with this revenue component increasing by 5%. The Accountants Practice Management Group has been focussed on progressively improving the quality of revenue by increasing the subscription component of revenue. Subscription revenue now comprises 95% of the available revenue in this division. Seat growth has also continued, as depicted in the attached chart. Overall revenue has fallen slightly as we also now start to move our ReckonDocs business to a subscription offering.
| For further information, please contact: | |
|---|---|
| Mr Clive Rabie | Mr Chris Hagglund |
| Group CEO | CFO |
| Reckon Limited | Reckon Limited |
| (02) 9134 3350 | (02) 9134 3360 |
Reckon Limited ABN 14 003 348 730 | Level 2, 100 Pacific Highway North Sydney NSW 2060 Australia T +61 2 9134 3300 | [email protected] | www.reckon.com
Results Summary (unaudited)
| Accountants | Continuing | ||||
|---|---|---|---|---|---|
| Legal Practice | Central | Practice | business including | ||
| 2017 | Business Group | ManagementGroup | Administrationcosts | ManagementGroup | Accountants PMGroup |
| REVENUE | 35,917 | 13,007 | 31,413 | 80,337 | |
| EBITDA | 17,242 | 3,424 | (4,731) | 15,338 | 31,273 |
| Development expenditure | 6,035 | 2,248 | 6,986 | 15,269 |
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2016
| REVENUE | 35,555 | 14,098 | 32,072 | 81,725 | |
|---|---|---|---|---|---|
| EBITDA | 17,034 | 4,544 | (4,676) | 15,321 | 32,223 |
| Development expenditure | 10,216 | 2,232 | 6,447 | 18,895 |
Reckon APS Seat growth
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