Reckon delivers $5M first half net profit

• Reckon (ASX:RKN) recorded a 6% year-on-year increase in net profit after tax to $5 million for the first half.
• The company declared a fully franked dividend of $1.5 million as net debt fell to $1.5 million.
• Growth was driven by a 23% revenue jump in the cloud platform Reckon One and a 97% surge in Billing Workflows.

Financial software provider Reckon (ASX:RKN) reported a 6% year-on-year increase in first-half net profit after tax to $5 million.

While total revenue fell 3% to $32 million, underlying earnings before interest, tax, depreciation, and amortisation remained steady at $14 million.

"The first half saw continued execution of our strategy to migrate legacy customers to Reckon One while growing our cloud-based products across both operating divisions," said Reckon Group CEO Sam Allert.

The company declared a fully franked dividend of $5.4 million to $1.5 million.

Following the announcement, the Reckon share price was unchanged at $0.44.

Reckon stated that artificial intelligence implementation reduced development timelines and brought Reckon One closer to functional parity with legacy software.

The business also completed its final $1.3 million acquisition payment for Cashflow Manager while generating 97% subscription revenue growth in legal workflows.