Hansen Technologies Limited (ASX: HSN) (“Hansen”, the “Company”) is a growing aggregator of mature, entrenched, and predictable providers of software to the Gas, Electricity, Water and Communications industries. Financial Year 2020:
RESULTS SUMMARY
| A$ million | FY20 | FY19 | Variance (%) |
| Operating revenue | 301.4 | 231.3 | 30.3% |
| EBITDA (1), (2) | 80.7 | 60.3 | 33.8% |
| Underlying NPAT (4), (5) | 29.5 | 24.0 | 22.9% |
| Underlying NPATA (1), (3), (4), (5) | 47.4 | 33.7 | 40.7% |
| Basic EPS based on underlying NPATA | 23.9 | 17.1 | 39.8% |
| (EPSa)(cents)(1) |
Notes:
(1): The Directors believe the information additional to IFRS measures included in the press release is relevant and useful in measuring the financial performance of the Group. These include: EBITDA, NPATA and EPSa.
(2): EBITDA is a non-IFRS term, defined as earnings before interest, tax, depreciation and amortisation and excluding net foreign exchange gains (losses). EBITDA for FY19 has been restated to account for the estimated impact of AASB16.
(3): NPATA is a non-IFRS term, defined as net profit after tax, excluding tax-effected amortisation of acquired intangibles.
(4): Underlying NPAT and underlying NPATA exclude separately disclosed items, which represent the restructuring and one-off costs and income during the period. Further details of the separately disclosed items are outlined in Note 4 to the Financial Report which can be found on the Company’s web site.
(5): On 1 July 2019, the Group adopted AASB 16 for the first time, resulting in an increase in EBITDA in the current financial year. Further details on the adoption of AASB 16 are described in Note 13 to Financial Report which can be found on the Company’s web site.
Hansen’s Chief Executive Officer, Andrew Hansen, said: “The FY20 result was a record result for Hansen across all key metrics, delivered against the backdrop of a global pandemic and the associated uncertainty. It makes me very proud to deliver to our shareholders an outcome like this. As I reflect on the second half of 2020, with our staff working from home and our customers looking to us for reassurance that their systems would not falter, the outstanding team work of the Company’s global staff delivered the outcomes our customers were looking for. This result proves the long-term resilience of our business model of growing revenues and EBITDA over the long-term by the value accretive aggregation of strategically targeted businesses.”
Revenue
Operating revenue for Financial Year 2020 was $301.4m, 30.3% up on FY19 and continuing our strong long-term revenue trend with our five-year revenue CAGR now 23% to FY20.
This growth continues to be driven by our aggregation strategy and the “Hansenisation” of businesses that have joined us and is further supplemented with 20 new customers welcomed to Hansen over the last twelve months.
Our revenue growth is supported by globally diversified, long-term existing customer relationships forming a strong recurring base to which we add new customers and significant successful customer upgrades and projects.
EBITDA
Reported EBITDA for FY20 was $80.7m, up 33.8% on FY19. The integration of the Sigma business together with a rationalisation of the Company’s cost base driven by the global pandemic has generated an improved EBITDA margin for the full year of 26.8%.
This EBITDA result continues our strong track record of EBITDA improvements driven by a focus on profitability improvements including through our low-cost development centres and continued improvements in the performance of integrated businesses, with our five-year EBITDA CAGR now 20% to FY20.
Cash flow and debt
This strong revenue and EBITDA performance is further underpinned by the Company’s ability to generate cash with cash-flow from operations including lease payments delivering $44.2m worth of free cash flow (up from $30.1m in FY19). This strong cash position has allowed us to reduce debt levels by $34.9m to $116.5m.
Hansen’s ability to generate cash in the current environment further underscores the strength it has enabling it to invest in its products and fund acquisitions.
Update on aggregation strategy
Our twenty-year history of successful aggregation is set to continue with Hansen’s core business providing the people and the capital to continue to drive this successful strategy. Many opportunities exist and we will continue to be vigilant, disciplined and focused only bringing the best most value-accretive opportunities into the Hansen fold.
Dividend
Reflecting our strong cash generation, the Board has declared a final, partially franked dividend of 5.0 cents per share and a special dividend of 2.0 cents per share. The record date for the final and special dividend is 3rd September 2020 and the payment date is 25th September 2020. The Dividend Reinvestment Plan (DRP) will again be available to shareholders with no discount. The DRP election cut-off date will be the 4th of September 2020.
This strong financial outcome has enabled us to declare dividends amounting to 10 cents per share this year returning 46% of NPATA to shareholders.
FY21 Outlook
Considering the continuing uncertainty caused by the ongoing pandemic, we are not providing earnings guidance for FY21 and look forward to updating the market with our progress following the release of our half year 2021 results.
Investor Briefing
An investor and analyst briefing conference call to discuss the Financial Year 2020 results will be held at 11 am (AEST) on 28th August 2020. Click on the link below to pre-register for the call. You will be sent an invitation and dial-in details.
https://s1.c-conf.com/diamondpass/10008663-invite.html
For further information on Financial Year 2020:
Investor and analyst enquiries
Graeme Taylor
+61 404092861
Graeme.taylor@hansencx.com
About Hansen
Hansen Technologies (ASX: HSN) is a leading global provider of software and services to the energy, water and communications industries. With its award-winning software portfolio, Hansen serves 550+ customers in over 80 countries, helping them to create, sell, and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes. For more information visit Hansen at www.hansencx.com