Objective share price jumps to record high

Objective Corporation has reported a stellar financial performance in the past financial year, with its share price rising rapidly over 2021 to push the personal wealth of founder, CEO and majority shareholder Tony Walls past the $A1 billion dollar mark.

The company also announced a new cloud-native ECM initiative and a highlight of the first half was the completion of a contract to deliver an Objective Enterprise Content Management as a Service (ECMaaS) solution to 4000 users at the City of Gold Coast in Queensland.

For the 2021 financial year, revenue climbed by 36% to $A95.1 million ($70 million in FY20).

Earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 49% to $A25.6 million ($A17.2 million in FY20). In addition, Net Profit After Tax (NPAT) moved 45% higher to $A16 million. Objective stated that this was driven by strong organic growth and earnings accretive corporate development.

Tony Walls, Objective CEO, commented, "We are really pleased with our performance in FY2021 - delivering outstanding outcomes for our customers, and protecting our employees and their families while facing an uncertain operating environment. Our financial results in FY2021 reflects the continued delivery of our strategic plan, with strong growth in recurring revenue and earnings underpinning our highest ever investment in innovation.

"In its first year in the Objective family, our Regtech business made a solid contribution to our overall results. The market opportunity for Regworks is developing rapidly and was demonstrated by the number of new customer wins during the year; three of which were the largest in Regworks' history. These results illustrate the opportunity that arises from combining businesses with deep domain expertise with Objective's long history of delivering high quality outcomes for over 1,000 public sector organisations.

"In FY2022 we expect the momentum of our business to drive a continued material lift in revenue and profitability.”

The company invested $A23M in Research & Development (R&D) in FY21, representing 24% of revenue.

New product launches on the horizon include Objective Build, Objective Nexus (cloud native ECM), Objective ECM 1 11 and Objective RegWorks iQ.

The company has also confirmed it is actively seeking acquisitions that offer additional product or market reach capabilities. Objective declared a healthy cash balance of $A48M at the end of FY21. This includes the $A18M Itree acquisition, and the $A6.6M in dividend payments during September 2020.

"A highlight of the first half was the successful go-live of the final phase of a significant project at the City of Gold Coast,” said Walls.

The $A38 million contract was for a solution to help the city government manage records, automate business processes, and collaborate on projects.

“Primarily delivered remotely by an Objective team from around the globe, 4000 users council-wide are leveraging numerous Objective products through our unified user experience framework, Objective IQ. Delivery of this complex and mission critical solution under trying circumstances demonstrates the calibre of our people, the quality of our ECMaaS solution and the infrastructure we have in place to support our customers.”