The Brisbane-based IT company produced a $33 million after-tax result for the half year, an increase of 18 per cent. It will pay out a dividend of 4.2 cents a share (franked to 2.52 cents), an increase of 10 per cent.

Its annual recurring revenue for its software as a service (Saas) business was up 44 per cent and it expected its on-premise business to end by 2024.

Chief executive Edward Chung said it was the 13th year of the company posting a record first-half result.

He said 138 companies had transitioned to its Saas platform during the half.

“These are strong half-year results for TechnologyOne and validate the strength of our Saas strategy, which continues to drive our strong growth trajectory in Australia and the UK.

The company’s UK business produced a pre-tax profit of $2.3 million, a 100 per cent increase and Chung said strong growth was expected from the business which has an addressable market that was three times the size of the market in the APAC region.

“As we continue to win more customers and our Saas platform continues to scale globally our profit margin will continue to expand,” Chung said.

“Cash flow generation will be strong over the full year and we expect it to represent approximately 85 per cent of net profit after tax.”

Chung said he was confident about the company’s prospects despite concerns about the global economy.

He said TechOne was on track to deliver annual recurring revenue of $500 million by 2026. Its current ARR is $288 million.

Executive chair Adrian Di Marco said it was an outstanding result for the company which had been transitioning from on-premises to Saas over the past five years.