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Reckon posts 27% gain in 2010 profit

Reckon posts 27% gain in 2010 profit

Financial management software company Reckon Limited (ASX:RKN) grew its 2010 net profit 27% to $17.2 million, from strong performance at its business division.

Revenue grew 6% over the year to $90.1 million, while EBITDA increased 20% to $30.2 million.

The business division grew its revenue 12%, retail sales 32% and ebitda 32% to $20.7 million. Reckon attributed this growth to higher take up of online accounting software, such as its QuckBooks hosted software product which now has around 8,000 users.

The company's nQueue Billback unit, which provides cost recovery software to law firms, increased ebitda 41% from the merging of its nQueue and BillBack businesses. But revenue fell 1% as a result of forex impacts.

The professional division was hit harder by forex losses, with revenue down 5% and ebitda declining 2%.

In Reckon's annual report, chairman John Tharne and group CEO Clive Rabie said the 2010 results show that the Reckon Group is well positioned for further growth in 2011.

The company has flagged plans to continue to consolidate its development teams through 2011, and to combine the offices of the Professional and Business divisions.

Reckon disclosed that in February it had received a $700,000 settlement from Espreon Limited in a court tiff over a disputed share sale agreement back in 2008.

RKN shares grew 1.17% on Thursday to $2.600.

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Tags softwarefinancial resultsReckonforeign exchangeASX:RKNClive RabieJohn Thane

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