Aussie software firm announces UK growth

24 Nov 2020

  • Local government digital transformation projects aid TechnologyOne’s UK growth during pandemic

  • TechnologyOne sees strong Software as a Service (SaaS) growth in UK local government and education sectors 

  • Queensland Trade Commissioner says UK-Australian Trade Agreement could usher in new era of digital trade, ecommerce and investment in new technologies, with Queensland companies showcasing Aussie drive and innovation. 

Australian enterprise Software as a Service company TechnologyOne (ASX:TNE) is looking to accelerate its growth in the United Kingdom, after today announcing strong growth with SaaS ARR up 22%, delivering a break-even result in the UK.

TechnologyOne’s UK financial performance has swung from a loss of AUS$1.9m to breakeven, for the financial year ending 30 September 2020. The turnaround has been driven by a growth in digital transformation projects at local councils during the COVID-19 pandemic, and improved operational performance.

Despite challenging financial pressures amongst local government and education sector clients, as a result of the pandemic, TechnologyOne expects to continue to see strong growth in the UK over coming years. It forecasts that the growth in remote working, distance learning and budgetary pressures will mean more and more organisations will look to make savings by digitally transforming their operations.

TechnologyOne’s SaaS platform is helping employees at UK local authorities and higher education institutions access vital business information via a secure web-based portal from any device, anywhere, at any time.

TechnologyOne's Chief Executive Officer, Edward Chung, said he was excited about the opportunities the UK market brings. While it currently represents a fraction of overall business, TechnologyOne estimates that the UK represents a large addressable market, three times the size of its Asia-Pacific core business.

“We’re confident the UK remains an exciting and large market for our products and will become a significant contributor of profit growth in future years. As a result, we’re continuing to invest strongly in the UK,”  said Mr Chung.

The Brisbane headquartered company, which has UK operations in Maidenhead, Berkshire, has won a number of major contracts over the past twelve months, helping local councils and universities digitally transform their financeHR, procurement, asset management and student experience functions. Recent contract wins and go-lives include West Lindsey, North Wales Fire & Rescue Service and Warwick District Council. One area where TechnologyOne has seen particularly strong growth is in Northern Ireland, where it has signed deals with nine local councils, including Mid and East Antrim Borough Council and Mid Ulster District Council.

A new UK-Australia free trade agreement could increase digital trade and innovation

With the UK and Australia concluding its second round of free trade discussions last month, TechnologyOne also believes closer bonds between the two countries could increase digital trade and innovation.

Linda Apelt, Queensland Trade and Investment Commissioner in the UK, added, “The UK is Australia’s seventh largest trading partner and as the two countries forge a new, post-Brexit free trade agreement, digital trade and communications will be at the heart of what we look to do.

“Queensland companies - like TechnologyOne - continue to showcase the Aussie innovation and drive in countries including the UK. I believe a new UK-Australian free trade agreement could create the perfect opportunity to reduce e-commerce barriers and stimulate investment in new technologies, for the benefit of all our citizens.”

Showing its support for UK economic recovery, TechnologyOne also partnered with the UK Tech Cluster Group, this year, to support its Recovery Roadmap. The initiative brings together over 400 technology leaders within local, regional and national public sector organisations to establish strategies for economic recovery and growth in a post-COVID-19 world.

The UK news comes as TechnologyOne announced overall record group revenues, including SaaS ARR AU$134.6m up 32%, and Underlying Net Profit Before Tax of AU $86.1m, up 13%.

The company said they had also made an R&D investment of AU$68.1m (up 13%), which equates to 22% of Revenue.

Media contact
Amity Sturwohld
Corporate Affairs Manager
+61 439 646 389
amity_sturwohld@technologyonecorp.com

About TechnologyOne

TechnologyOne (ASX: TNE) is Australia’s largest enterprise Software as a Service (SaaS) company and one of Australia’s top 100 ASX-listed companies, with offices across six countries. Our enterprise SaaS solution transforms business and makes life simple for our customers by providing powerful, deeply integrated enterprise software that is incredibly easy to use. Over 1,200 leading corporations, government departments and statutory authorities are powered by our software.

Our global SaaS solution provides deep functionality for the markets we serve: local government, government, education, health and community services, asset intensive industries and financial services. For these markets we invest significant funds each year in R&D. We also take complete responsibility to market, sell, implement, support and run our solutions for our customers, which reduce time, cost and risk.

Publish date

24 Nov 2020

Resources

  • Local Government Media release
    12 Mar 2024

    Redland City Council turns to technology for better customer centricity

    Redland City Council is extending its partnership with TechnologyOne to streamline day-to-day operations and deliver better services to its residents.
  • Media release
    29 Feb 2024

    Newcastle boosts sustainability with digital transformation

    Newcastle City Council has transitioned to an Employee Self Service solution by TechnologyOne, saving time, money and a significant amount of paper.
  • Media release
    23 Feb 2024

    City of Devonport embraces new technology to keep local parks clean

    City of Devonport will save half a million dollars a year as a result of its digital transformation with TechnologyOne and IoT devices.

Looking for more resources?

Check out all 98 Local Government resources.

Contact Us Agent - TechnologyOne

Have a question?

If you would like more information, we are here to help.