TechnologyOne Limited (ASX: TNE)
TechnologyOne Limited has reported record first-half results for the period ending 31 March with significant growth across key financial metrics. The company's profit before tax rose by 33% to $81.9M and profit after tax increased by 31% to $63.0M. Total Annual Recurring Revenue reached $511.1M marking a 21% increase and surpassing the $500M goal 18 months ahead of schedule.
The company’s SaaS+ offering has been a major growth driver leading to a 19% increase in SaaS and recurring revenue to $265.0M. Net revenue retention stands at 118%, exceeding the long-term target of 115% while churn remained exceptionally low at 0.3%. Free Cash Flow saw a substantial improvement reaching $24.0M compared to a negative $3.8M in the prior corresponding period.
TechnologyOne's UK operations demonstrated remarkable growth with UK ARR increasing by 50% to $43.1M and new UK sales ARR up by 61%. The company also acquired CourseLoop in November 2024 for $60M integrating its curriculum management product to enhance the OneEducation solution. The acquisition of CourseLoop bolstered revenue by $4.7M as of the acquisition date. In addition, the interim dividend for the first half of fiscal year 2025 saw a 30% increase reaching 6.60 cents per share. The company's financial position remains robust, characterized by a debt-free status and substantial cash reserves.
QBE Insurance Group Limited (ASX: QBE)
QBE Insurance Group Limited is an international insurer and reinsurer headquartered in Sydney and listed on the Australian Securities Exchange It reported an encouraging financial performance for the year ended December 31, 2024. The company achieved a statutory net profit after tax of $1,779M, a notable increase from $1,355M in the prior year. Adjusted net profit after tax also rose to $1,729M from $1,362M, contributing to an adjusted return on equity of 18.2% up from 15.8% in FY23.
Gross written premium grew by 3% to $22,395M supported by targeted new business growth and Group-wide renewal rate increases of 5.5%. GWP growth was approximately 9% excluding crop insurance and portfolio exits. The combined operating ratio improved to 93.1% in 2024 from 95.2% in the prior year exceeding internal plans due to favorable catastrophe experience and stable central estimate reserve development. QBE forecasts a Group COR of around 92.5% for 2025.
Investment performance was strong with total investment income of $1,488M representing a 4.9% return compared to $1,374M or 4.7% in the prior year. This was bolstered by higher interest rates and robust risk asset returns which are expected to continue into 2025. QBE's capital position remains solid with the indicative regulatory prescribed capital amount (PCA) multiple improving to 1.86x at December 31, 2024 from 1.82x which is then comfortably within its target range. The Board declared a final dividend of 63 Australian cents per share resulting in a full-year dividend of 87 Australian cents per share representing a 50% payout ratio of adjusted net profit after tax
(Source: Company Announcements)
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