Sign up Australia
Proactive Investors - Run By Investors For Investors

Objective Corporation downgrades earnings for FY2018, positioned for margin expansion

The company creates information and process governance software solutions.
stock market concept
Shares were off 19.2% to $2.90 intraday

Objective Corporation Ltd (ASX:OCL) had downgraded earnings for FY2018 and now expects them to be largely in line with last year’s results.

Based on unaudited management accounts as at June 30, 2018, revenue totalled $63.0 million (FY2017:$62.8 million) and EBITDA $10.5 million (FY2017: $10.4 million).

Transition to subscription-based revenue, cash flow strong

The company continues to focus on transitioning its customer contracts to subscription-based revenue, now accounting for 61% of total revenue.

Positively, cash flow from operations increased by 18% to $11.3 million representing 107% of EBITDA for the year.

This confirms good conversion of P&L earnings into cash alleviating working capital concerns.

Margin expansion expected in FY2019

The company is confident it can deliver significant margin expansion in FY2019 due to its R&D investment, operating leverage and transition to subscription revenue.

Objective also remains confident that the fundamental drivers of customer demand for its products has not changed.

Four business units

The company has four main business units, Objective ECM which accounts for the majority of revenue and earnings and Objective Keystone, Objective Connect, and Objective Trapeze.

ECM stands for enterprise content management and ECM software helps business manage their content such a digitalising documentation.

View full OCL profile View Profile

Objective Corporation Ltd Timeline

Related Articles

electric vehicle charging
July 04 2018
AMP wants to add 25 sites in Greater London and extend its reach into the North-West around Liverpool and Manchester
remote meeting
August 15 2018
The acquisition of MeetingZone earlier this year has been called “transformational” by LoopUp bosses
An illustration of the tools Velpic uses in providing education and incident management
March 22 2018
Velpic has just signed its first NowForce client in Australia.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use