MYOB to grow revenues 40%, earnings 35% in 2004

Stan Beer
Monday, 01 November 2004 15:39

IT Industry - Development

Accounting software vendor, MYOB (ASX:MYO) has forecast a 40% increase in revenue  and 35% increase in EBITDA for 2004. For the full year to 31 December 2004, MYOB expects revenue of around $124 million and expects to increase its profit margin further in 2005, after describing successful progress in the integration of the Solution 6 business, which was merged into MYO in August. In a statement to the ASX, MYO claimed that the merger would provide synergies of $10-12 million per year within three years.

In addition to the financial forecast, MYO announced the sale of one of the less profitable businesses of Solution 6, Pollack Learning Alliance, which was sold to the current general manager Steve Lemlin for $9 million. According to the MYO statement, Pollack, which provides customised desktop software training programs for large corporate clients, was not a strategic fit for the company, which provides training services for smaller businesses. Apparently, Pollack was an approximately break-even business and the sale is expected to be “mildly earnings per share accretive” for MYO.

MYO shares were slightly down at the close of trade on moderate volume, finishing on $1.45.