1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
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Key points
Reaffirmed FY26 guidance for 18–20% profit-before-tax growth and stronger dividendsAI-led “Plus” and new “conversations and interactions” usage model seen as major incremental revenue streams Diversified verticals, with higher education and local government driving ARR, support consistent growth Concern that proposed CGT changes may hurt Australian startups and push innovation offshore
TechnologyOne reaffirms full-year 2026 profit-before-tax growth at the top end of its 18–20% range, with CEO Ed Chung stating confidence stems from clear pipeline visibility, a conservative guidance approach and strong customer engagement. Chung highlights the company’s 17th consecutive record first-half profit, with profit after tax up 6% to $66.8 million, revenue rising 11% to $323 million and an interim dividend lifted 21% to $0.08 per share. He maintains that foreign exchange headwinds, including sterling volatility, are material but not an excuse, pointing to underlying recurring revenue growth and robust net revenue retention.
Chung outlines a goal of about $1 billion in annual recurring revenue by FY30, projecting “quite a bit” of this to come from AI-driven adoption. He cites TechnologyOne’s new AI-enabled “Plus” product as a key growth driver, describing it as a simple, ChatGPT-like interface that opens ERP access to non-experts and pulls through broader product uptake. Early use cases with James Cook University and the City of Townsville underline strong demand in higher education and local government verticals, with local government ARR cited as growing 27% in the half.
Chung also flags concern that proposed Australian CGT changes could undermine the local startup ecosystem, arguing for UK-style carve-outs to keep tech talent and innovation onshore.
