MYOB said it was planning to undertake an on-market share buy-back of up to 5 per cent of the company’s issued capital, equivalent to approximately 30,322,081 ordinary shares, from 8 September 2017.
The announcement followed MYOB’s 2017 half-year results which saw revenue increase to $204 million, up 14 per cent, with the number of SME paying users growing by 5 per cent to 601,000.
MYOB chairman Justin Milne said the number of shares purchased would depend on market conditions and would be evaluated against alternative opportunities throughout the buy-back period.
“This buy-back reflects the board’s commitment to efficient capital management whilst maintaining flexibility to pursue acquisitions in line with our growth strategy,” Mr Milne said.
“The business has achieved record growth in online subscribers, up 53 per cent on the prior year to 306,000, reflecting MYOB’s focus on the Connected Practice Strategy which is driving online SME growth and leading to higher migration and retention rates.”
SME solutions accounted for 62 per cent of total revenues with revenue growing organically to $126.4 million, an increase of 12 per cent from the first half of 2016.
Enterprise solutions also recorded strong growth, up 36 per cent year-on-year to $30.6 million, with the purchase of Greentree in August 2016 contributing $6.6 million of revenue in the first half of 2017.
MYOB chief executive Tim Reed said R&D investment for FY17 would continue to be at the upper end of the reported 13 to 16 per cent of revenue range.
“Our focused investment in the MYOB Platform remains a key driver of our success, as we continue to develop products and services that leverage artificial intelligence and machine learning to deliver best in class solutions to our clients,” Mr Reed said.
“Our outlook for FY17 remains positive, with the Connected Practice strategy underpinned by the MYOB platform expected to drive accelerating online subscriber growth in 2H17.
“On the back of a strong first half, we are updating our FY17 revenue growth rate to be in the 13 per cent — 15 per cent range and EBITDA margins to be in the 45 – 46 per cent range, a tighter range compared with previous guidance.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.