Revenue, Profit Down At Reckon, But Cloud Business Taking Off
ASX-listed accounting software house Reckon has reported revenue of $48.9 million for the year ended December 31, down slightly on the $49.68 million recorded in the 2016 year. Profit after tax from continuing operations is put at $2.2 million, down from $4.4 million in the previous year. Profit from “discontinued operations” is put at $6.5 million
Reckon says it added 8000 subscribers in the past year in cloud software alone, now totalling more than 47,000 cloud users.
The company’s document management division was de-merged and listed on the AIM exchange in August last year, and is now valued at $31 million, according to the report.
In another major move, Reckon sold its accountants practice management group to rival accounting house MYOB in November for $180 million.
Reckon says its subscription business is increasing and now accounts for 75pc of revenue.
While legacy desktop revenue has continued to decline, Reckon says this is more than offset by growth in its cloud business.
CEO Clive Rabie has said he expects revenue to grow around six percent to more than $100 million in the current year.