AAP Finance

WiseTech profit up 33%, flags strong FY20

By AAP Newswire

Worldwide expansion has helped lift logistics software provider WiseTech Global's full-year profit up 32.7 per cent as the tech company found tailwinds from international tariffs, regulation and taxes.

WiseTech Global reported a profit of $54.1 million, up from $40.8 million for the previous corresponding period, citing strong organic revenue growth and a raft of international acquisitions.

Revenue for the 12 months to June 30 surged 57 per cent to $348.3 million, ahead of expected guidance set between 47 per cent and 53 per cent in March ahead of full-year results.

Chief executive Richard White says he expects that to grow by as much as another 32 per cent in FY20.

He says the increasing prevalence of tariffs, regulation and taxes are creating "ever stronger tailwinds for greater adoption" of WiseTech's software as the firm raised its final dividend by 0.3 of a cent to a fully franked 1.95 cents.

"The opportunity available to us is vast and while our growth rates to date have been strong our penetration of both customers and addressable markets is still in the early stages," Mr White told investors on Wednesday following the results announcement.

"In the last 12 months the pain points across the industry have deepened.

"Our global platform CargoWise turn these pains into tailwinds."

Industry problems including political changes seen with the Brexit deal, trade wars and increasing complexity between borders were cited as positively affecting the uptake of its CargoWise One software.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 39 per cent to $108.1 million, and overall has more than doubled since FY17 on the back of organic growth within its existing customer base and an attrition rate for its core technology platform of less than 1.0 per cent.

Revenue from existing customers increased $46.8 million, including $9.2 million of favourable foreign exchange movements thanks to its global reach and uptake from logistics organisations.

The software solutions provider said strong revenue growth was supported by the investment of $113 million into developing more than 830 internal product enhancements and upgrades to its CargoWise One platform.

On top of organic growth from its existing technology platform, WiseTech announced at the beginning of this year it was in the process of acquiring 15 software businesses.

Shares in the technology provider lifted 8.27 per cent to $29.99 at 1206 AEST.

WISETECH'S FY19 RESULTS

* Total revenue up 57pct to $348.3m

* Profit up 32.7pct to $54.1m

* Fully franked final dividend up 0.3 cents from a year ago to 1.95 cents.