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Business Description: Reckon Limited (RKN) is a provider of software solutions for accounting and bookkeeping professionals, as well as small to medium sized businesses, small office/home office users and personal wealth management sectors. RKN operates four divisions, namely Business, Professional, nQueueBillback, and Virtual Cabinet, mainly in Australia and New Zealand, while having the presences in United Kingdom and USA.
Strategy Analysis: In recent years, Reckon Ltd has embarked on a successful, broad segmentation strategy in order to diversify its revenue base. It has also made sensible acquisitions in closely-related businesses. In light of the mature state of the industry, Reckon needs to ensure current products and technical help services are reliable to counter competition. In order to drive growth, the strategy includes: 1) Core Product Augmentation - refreshing core products to make them more appealing to existing/new customers; 2) Seamless Integration of Reckon products - by making more products work together efficiently, the company will be able to offer an end-to-end suite of products which will give clients more reasons not to change products providers; 3) The move to Online - this sales push will result in greater overall revenues due to the annual subscription-based pricing and offer existing clients an alternative to competitor´s online offerings.
Reckon reported NPAT up 6% to $17.8m for the year ended 31 December 2012. Revenues from ordinary activities were $96.8m, up 7% from last year. Diluted EPS was 13.3 cents compared to 12 cents last year. Net operating cash flow was $24.03m compared to $26.82m last year. The final dividend declared was 4.5 cents, taking the full year dividend to 8.25 cents compared with 8 cents last year.
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The Age 19/06/2013 |
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The Age 19/06/2013 |
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The Age 19/06/2013 |
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The Age 19/06/2013 |
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The Age 19/06/2013 |
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