Reckon Limited Reports 16% Revenue Growth and $4.5M Net Profit in H1 2025
Reckon Limited has delivered a robust half-year performance with a 16% revenue increase and a 29% rise in net profit attributable to members, while declaring a steady fully franked dividend. Despite these gains, the company’s net tangible assets per share remain negative, highlighting ongoing balance sheet pressures.
- Revenue up 16% to $33 million in H1 2025
- Net profit attributable to members rises 29% to $4.5 million
- EBITDA grows 21% to $14.1 million
- Fully franked dividend maintained at 2.5 cents per share
- Net tangible assets per share remain negative at -19.6 cents
Strong Financial Growth
Reckon Limited has reported a solid half-year financial performance for the six months ending 30 June 2025, with revenue climbing 16% to $33 million compared to the prior corresponding period. This growth was accompanied by a 21% increase in EBITDA, reaching $14.1 million, and a notable 29% rise in net profit attributable to members, which hit $4.5 million.
The company’s ability to boost profitability while expanding revenue signals effective operational management and a successful execution of its business strategy amid a competitive technology landscape.
Dividend Stability Amid Balance Sheet Concerns
Despite the positive earnings momentum, Reckon’s net tangible assets per share remain negative at 19.6 cents, although this marks an improvement from negative 12.6 cents at the end of 2024. This persistent negative net tangible asset position suggests underlying balance sheet challenges that investors should monitor closely.
In a vote of confidence, the Board declared a fully franked dividend of 2.5 cents per share, unchanged from the previous year, payable on 2 September 2025. This steady dividend reflects Reckon’s commitment to returning value to shareholders even as it navigates capital structure constraints.
Operational and Legal Restructuring
The company continues to focus on cash flow management and operational efficiencies, including legal group restructuring aimed at supporting sustainable growth. These initiatives are designed to streamline costs and enhance the company’s ability to invest in its core software and IT services business.
Reckon’s management highlights the importance of maintaining strong cash flow and legal clarity to underpin future growth and shareholder returns, signaling a cautious but optimistic outlook.
Auditor Review and Compliance
The half-year financial report was reviewed by BDO Audit Pty Ltd with no qualifications or disputes noted, providing assurance on the accuracy and compliance of Reckon’s financial disclosures. The auditor’s clean review supports the credibility of the reported results and the company’s adherence to accounting standards.
Looking ahead, Reckon’s ability to sustain profit growth while addressing balance sheet weaknesses will be critical to its market positioning and investor confidence.
Bottom Line?
Reckon’s strong profit growth and steady dividend are encouraging, but persistent negative net tangible assets warrant close investor scrutiny.
Questions in the middle?
- What strategies will Reckon deploy to improve its net tangible asset position?
- How will ongoing legal restructuring impact operational efficiency and costs?
- What is the company’s outlook on market conditions and revenue growth for the remainder of 2025?
