Technology One: Taking SaaS to the next level

About the author:

Author name:

By Nick Harris

Job title:

Senior Analyst

Date posted:

24 May 2023, 7:00 AM

Sectors Covered:

Telecommunications, Technology

• Technology One (ASX:TNE) delivered a solid 1H23 result that was inline with our forecasts. PBT was up 21% YoY, the dividend up 10% YoY and operating cashflow improved YoY. As expected cashflow is seasonally weak in 1H so we expect TNE to deliver 98% of their full year FCF in 2H23.
• FY23 guidance is for 10-15% profit growth, as expected. Overall this was a good result from TNE that was inline with our and consensus expectations.
• We make immaterial forecast adjustments and retain our Hold recommendation. Our Target Price increases to (login to view) predominately on a peer multiple refresh.

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