Hansen Technologies (ASX:HSN) share price rises on profit surge

The Hansen Technologies Limited (ASX:HSN) share price is on the move today, rising more than 2% after the company’s 1H21 earnings report was released last night.
The post Hansen Technologies (ASX:HSN) share price rises on profit surge appeared first on The Motley Fool Australia. –

feet of investor like warren buffett walking up chalk-drawn steps

The Hansen Technologies Limited (ASX: HSN) share price is on the rise today, up 2.27% at the time of writing to $4.06 a share. That’s especially impressive when you consider that the broader S&P/ASX 200 Index (ASX: XJO) is taking a pretty big tumble today and is currently down 2.41%.

The catalyst for Hansen’s move to the upside appears to be its earnings report for the first half of the 2021 financial year (1H21), posted to the ASX after market close yesterday afternoon.

What kind of results did Hansen deliver?

It was a sea of green from Hansen in 1H21. The company reported that revenues came in at $147.1 million, a 2% bump on the prior corresponding period (1H20). That’s on a constant currency basis (reported revenue was $142.2 million).

That helped the company post underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $54.3 million on a constant currency basis, a 44% increase on 1H20. That represents an EBITDA margin of 36.9%. Reported EBITDA was $52.3 million, which helped push net profits after tax (excluding tax-affected amortisation) up 77% to $31.6 million on a constant currency basis (or $29.6 million reported).

It also helped to push down Hansen’s net debt by 18%, which is now down $20.7 million over the half to $95.8 million.

Earnings per share (EPS) also rose 77% to 15.9 cents per share on constant currency (14.9 cents reported).

Due to the surge in profits, Hansen has declared an interim dividend of 5 cents per share, up 67% on the prior period. The dividend represents a payout ratio of 31% of earnings per share and is equal to the company’s final dividend for 2H20, although it doesn’t come with the addition of a 2 cents per share special dividend that we saw for that period last year. It also only comes 22% franked.

On an annualised basis, that dividend would give Hansen shares a forward dividend yield of 2.46%. The board stated that, “having considered Hansen’s capital requirements, strong capital structure and liquidity position, the Board has determined an increased interim dividend to return money to shareholders is appropriate.”

Looking forward

Hansen has also upgraded its guidance for the 2021 financial year. The board expects revenues to come in between $295–305 million on a constant currency basis for the financial year (or $285–295 million reported), and underlying EBITDA margins of between 33-35%.

Hansen CEO Andrew Hansen had this to say on the results overall:

The 1H21 result was a great outcome for Hansen across all key metrics, continuing our strong performance through the global pandemic. We have grown revenues 1.9% on a constant currency basis, driven a strong increase in profitability leading to a record half-year EBITDA while investing in our business to position Hansen Technologies for a ‘COVID-normal’ world… This result proves the long-term resilience of our business modelof growing revenues and EBITDA over the long-term by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

Judging by today’s move in the Hansen share price, it seems investors concur.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Hansen Technologies (ASX:HSN) share price rises on profit surge appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!