Software group Reckon has reported a 20 per cent increase in annual net profit and announced a share buy back.
Reckon achieved net profit after tax of $13.6 million in calendar 2009, up from $11.3 million a year ago.
Operating revenue rose 42 per cent to $85.3 million, from $60 million in the prior corresponding period.
"While times were tough in some of our markets in 2009, the company managed to return an excellent result," Reckon group chief executive Clive Rabie said in a statement lodged with the Australian Securities Exchange today.
"We generated organic profit growth in the existing businesses resulting from both increased revenue and carefully managing costs."
Reckon’s business is divided into two divisions - the professional, which sells products to large accounting firms, and business, which accounts for retail sales.
Mr Rabie said the business division experienced strong growth in direct sales, but full product sales were weaker due to de-stocking by retailers.
"However, in November and December of 2009 and into January 2010, full product sales have showed signs of growth again," Mr Rabie said.
There had been "strong growth" in the professional division on demand from both existing customers and new clients.
Reckon said its share buy-back would open on February 20 and comprise up to 10 per cent of the company’s existing stock.
Mr Rabie said the buy-back was "a good opportunity to invest capital currently available to the company".
The company declared a final, fully franked dividend of four cents per share, up from 3.5 cents in 2008.
AAP
