MYOB has released its 2017 financial results to the market reporting double-digit growth across all key financial measures, together with record online subscriber growth of 60%, driven by new small business customer wins and increasing online migration.
Delivery of the Connected Practice vision and focused investment in the MYOB platform of integrated services are generating significant and savings for SMEs and Advisers, and driving uptake in MYOB’s suite of online tools.
MYOB sees significant growth potential in the payments sector, with the category representing a $1.2b total addressable market for fees from payments through accounting software platforms.
Following the acquisition and integration of Paycorp in 2017, MYOB’s newly established payments division reported its first set of standalone results, generating revenues of $6.3 million for the 9 months to December 2017.
MYOB chief executive Tim Reed says about the full year results: “I am pleased to report a strong set of financial results for the 2017 financial year.
“We strongly believe in our Connected Practice vision and as we invest to build out the MYOB Platform, we are seeing more and more accountants and SMEs embrace their digital future and migrate online, with record online subscriber growth in 2017.
“The rewards of automation and accurate data feeds are significant and generate greater efficiencies and savings for small business owners and their advisers.
“Our mission is to ‘simplify success’ for our customers. The addition of payments processing means SME owners can achieve more within the MYOB platform; everything from invoicing and superannuation, through to applying for a bank loan and running payroll.”
Revenue for the 12-month period increased to $416 million, up 12% on the prior year, and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew to $190 million, up 11% on prior year.
MYOB’s preferred measure of after-tax profit, NPATA, was $102 million, up 10% on prior year, with associated NPATA earnings per share (EPS) of 16.9 cents, up 8% on prior year.
Commenting on the financial results, MYOB chief financial officer Richard Moore added: “We are very proud to deliver this set of financial results, with double-digit growth achieved across all key financial measures.
“MYOB is a market-leading provider of online business management solutions, with EBITDA margins of greater than 40%, and a proven track record of profitability and growth.
“We expect the positive growth trajectory to continue as we realise the significant upside in the payments and enterprise markets and as we continue to grow our online subscriber base and increase customer lifetime value,” Moore adds.
“We see further potential for growth from the acquisition of Reckon’s Accountant Group assets, and expect a decision from the Australian and New Zealand competition regulators in the second quarter of 2018.”
Dividend and Share buyback
The Company’s balance sheet remains strong and as a reflection of this, the Board has declared a final dividend of 5.75 cents per share, bringing the full year dividend to 11.50 cents.
In August 2017, MYOB announced an on - market share buyback of up to 5% of the company’s issued capital. The company acquired more than $3million in shares from existing cash in 2017, with a further $3 million purchased in January and February 2018.
The dividend and buyback combined represent a total of $73 million of capital returned to shareholders in 2017 and a total of $170 million of capital returned to shareholders from listing to 31 December 2017.