Latest news with #TechnologyOne
News.com.au
28-05-2025
- Business
- News.com.au
Government contracts are golden, and these ASX tech stocks are raking it in
TechnologyOne becomes Canberra's digital backbone 'Buy Australian Plan' aims to make it easier to land a public sector contract ASX tech stocks with signed government deals The third largest technology stock on the ASX, Technology One (ASX:TNE), is becoming the go-to IT backbone for governments across Australia. In its half-year deck released to the market last week, TNE reported that more than half (53%) of its revenue came from governments. With more than 230 departments and agencies already on board, the company has indeed stitched itself deep into the public sector. Recent wins include a major contract with the Australian Energy Regulator, and a $5.6 million deal with the ACT government to overhaul its development application system. So why do governments keep signing up? Well, because TechOne offers a no-fuss, fixed-fee SaaS+ model that delivers software, upgrades and support in one clean annual bill. No cost blowouts, no army of consultants, just results. Headquartered in Brisbane, TNE builds enterprise software that helps governments, councils and universities run their finances, payroll, HR, and procurement. Think of the company as the digital plumbing that keeps public services humming. In its presentation deck, TNE also said it was planning to double in size every five years. Buy Australian Plan For tech companies – especially the smaller caps – a government contract is a bit like landing a Fortune 500 client, only with steadier legs. It might not always be fast or flashy, but the revenue tends to stick around, and payment's generally reliable. A government contract could provide a stable, long-term, and recurring income for a tech company. Sure, it might take a while to get through the red tape, but once you're in, you've got a customer who doesn't ghost you when markets wobble (well, not usually anyway). Now the Australian government wants to make those contracts more accessible. Under the new 'Buy Australian Plan', Canberra is putting its money where its mouth is, using its huge buying power to back local operators, not offshore giants. The plan is all about making it easier for small businesses, First Nations companies and regional outfits to land government work without getting buried in red tape. That means clearer rules, simpler tenders, faster payments and shutting the door on tax dodgers. There's also a new Procurement Capability Branch under the plan, which will help Aussie businesses go toe-to-toe for contracts. Tech/biotechs with government deals Several ASX-listed tech and biotech names have either locked in government contracts or are being officially linked to key programs. Here are some notable examples: Macquarie Technology Group (ASX:MAQ) MAQ is one company the Aussie government seriously trusts. Around 42% of federal government agencies reportedly use MAQ's services through its Macquarie Government division. The company's Australian data centres are all Certified Strategic, meaning they're cleared to handle top-secret workloads and built to meet the toughest security standards in the country. DroneShield (ASX:DRO) DroneShield has been securing notable contracts with the Australian Defence Force (ADF) and other government agencies. In 2023, the company was awarded a $10 million Electronic Warfare contract by the Australian government, following the successful completion of a prior $3.8 million contract. Additionally, DroneShield received a $9.9 million two-year research and development contract from a Department of Defence within the Five Eyes alliance. In 2025, the company scored a $32.2 million deal via a local reseller tied to a global defence giant, with all gear heading to a major Asia-Pacific military force. Harvest Technology Group (ASX:HTG) Back in mid-2023, Harvest landed its first defence contract with a Five Eyes customer for its Nodestream technology. Nodestream helps stream high-quality video and data even in super low-bandwidth or remote environments. This tech could be used for critical defence applications involving surveillance and remote communications. It was a big step for HTG, marking the start of a potentially long-term relationship. Fast forward to early 2024, and HTG announced a follow-up – not just one, but two more orders from the same customer. The company also had other wins, including orders from the European Union Defence Force and new UK-based offshore contractors, plus a successful drone trial with Japan's Self-Defence Force. WhiteHawk (ASX:WHK) In early 2025, WhiteHawk was selected as the exclusive cyber risk partner on the US General Services Administration's SCRIPTS program. This is a 10-year, US$920 million contract vehicle focused on supply chain risk management across federal agencies. Teaming up with Knexus Research, Babel Street, and Dun & Bradstreet, WhiteHawk will provide AI-driven cyber analytics to help US agencies detect and mitigate supply chain vulnerabilities. In Australia, WhiteHawk is gradually expanding its footprint. In July 2024, the company secured a cybersecurity contract with Tabcorp. Micro-X (ASX:MX1) In February, Micro-X scored a $6 million contract extension from the US Department of Homeland Security (DHS) to keep building its self-screening airport checkpoints. It's part of a bigger deal worth up to US$14 million, and this next stage funds two more units and a full round of testing over the next 16 months. If things go well, DHS could tip in another $7.5 million to take the system all the way to live airport trials with real passengers. Micro-X was also awarded up to US$16.4 million by the US Advanced Research Projects Agency for Health (ARPA-H) to develop a world-first portable full-body CT scanner. The project leverages Micro-X's proprietary Nano Electronic X-ray (NEX) technology to create a lightweight CT scanner, approximately 225 kilograms, significantly lighter than conventional models exceeding 2000 kilograms. HiTech Group Australia (ASX:HIT) HiTech isn't your average recruiter, the company's been in the game over 30 years, quietly supplying top-shelf IT talent to more than 43 federal government departments across Australia. From Defence to Home Affairs, HIT is trusted to scout for and deliver security-cleared tech brains. As a DISP-accredited outfit, the company has practically got the keys to Canberra's back office, helping plug skill gaps in everything from IT and finance to project support. Audeara (ASX:AUA) While not holding direct government contracts per se, Audeara's headphones are officially approved as assistive listening devices under the NDIS (National Disability Insurance Scheme), DVA (Department of Veterans' Affairs), and the Hearing Services Program. This means the Australian government might help cover the cost if your hearing needs a boost. NDIS participants can claim them as low-cost assistive tech, DVA veterans can get them through the rehab appliance scheme, and under HSP, they're listed as fully subsidised alternatives. At Stockhead we tell it like it is. While Audeara and Harvest Technology are Stockhead advertisers, they did not sponsor this article.
News.com.au
22-05-2025
- Business
- News.com.au
‘One of the quietest success stories': TechnologyOne soars on record half-year profit
TechnologyOne's shares shot the lights out on Tuesday and Wednesday after a half-year profit result that sets it up now for record revenue and profit for the 16th straight year. TechnologyOne Chief Executive Edward Chung claims the company provides 'mission-critical software' for some defined vertical markets.
Sky News AU
21-05-2025
- Business
- Sky News AU
‘One of the quietest success stories': TechnologyOne soars on record half-year profit
TechnologyOne's shares shot the lights out on Tuesday and Wednesday after a half-year profit result that sets it up now for record revenue and profit for the 16th straight year. TechnologyOne Chief Executive Edward Chung claims the company provides 'mission-critical software' for some defined vertical markets. 'We've been around for a long time and probably one of the quietest success stories, as you say, in the Australian market,' he told Sky News Business Editor Ross Greenwood.
Yahoo
21-05-2025
- Business
- Yahoo
Results: Technology One Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
Technology One Limited (ASX:TNE) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 4.4% to hit AU$286m. Technology One reported statutory earnings per share (EPS) AU$0.19, which was a notable 11% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, the consensus forecast from Technology One's 17 analysts is for revenues of AU$596.6m in 2025. This reflects a notable 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.9% to AU$0.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$582.8m and earnings per share (EPS) of AU$0.42 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates. View our latest analysis for Technology One The analysts increased their price target 16% to AU$33.26, perhaps signalling that higher revenues are a strong leading indicator for Technology One's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Technology One analyst has a price target of AU$44.00 per share, while the most pessimistic values it at AU$18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Technology One's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Technology One is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors. The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Technology One going out to 2027, and you can see them free on our platform here. We also provide an overview of the Technology One Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
News.com.au
20-05-2025
- Business
- News.com.au
‘Inflation has fallen substantially': ASX jumps on RBA announcement
The Australian sharemarket rose during Tuesday's rating after the Reserve Bank of Australia reduced interest rates to their lowest levels since May 2023. The benchmark ASX 200 index finished 48.20 points or 0.58 per cent higher to 8,343.30. The broader All Ordinaries also rose, up 48.60 points or 0.57 per cent to 8,573.40. The Australian dollar fell on the back of the RBA's rate cut and is now buying 64.18 US cents. Australia's sharemarket extended its early jump after the RBA cut the official cash rate by 25 basis points to 3.85 per cent, moving rates back below the 4 per cent mark for the first time since 2023. While this was widely tipped by markets and economists alike, the RBA governor Michele Bullock said the decision was 'unanimous' while leaving the door open for further rate cuts, citing a promising inflation outlook. 'Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,' the Board said in its 2.30pm statement. This helped lift eight of the 11 sectors into the green, with information technology, property and telecommunications sectors leading the way. Technology One soared 11.33 per cent to $36.76 while Xero Limited rose 0.46 per cent and WiseTech Global jumped $2.68 per cent to $102.07. Stocklands shares also rose 0.73 per cent to $5.55, while The GPT Group is up 0.85 per cent to $4.72 and Mirvac Group rose 1.78 per cent to $2.29. The major banks also all finished in green. CBA continued its momentum, trading 0.62 per cent higher to $172.43, NAB jumped 1.00 per cent to $37.21, ANZ is up 1.27 per cent to $28.76, Westpac closed 0.41 per cent higher to $31.50 and Macquarie Group climbed 2.01 per cent to $208.09. senior financial market analyst Kyle Rodda said the RBA cut was expected by the market was buoyed by the surprising dovish commentary and forecasts. 'Global uncertainty was written all over the central bank's Statement on Monetary Policy, with growth and inflation forecasts lowered and forecasts for the unemployment rate lifted,' he said. 'Governor Bullock also stated the board tabled a 50 basis point cut at this meeting. 'While slightly ominous for the Australian growth outlook, the news boosted market sentiment, with the cut to trimmed mean inflation forecasts from 2.7 to 2.6 per cent all but signalling the RBA thinks it's close to calling mission accomplished on inflation.' AMP economist Shane Oliver said he now expects the board to cut interest rates three more times by early next year. 'We continue to see further rate cuts ahead as we see economic growth picking up more slowly than the RBA is forecasting, monetary policy remains tight and annual underlying inflation is close to being back at the midpoint of the target range earlier than the RBA was previously expecting,' he wrote in an economic update. In company news Telstra shares rose 2.2 per cent to $4.66 after announcing it was lifting the majority of its NBN and postpaid mobile plans by between $3 to $5. On the flip side, shares in Kogan were among the most heavily traded after the company announced a fall in profitability for its New Zealand business Mighty Ape. Shares fell 8.9 per cent to $4.12 on the announcement.
