It’s not as well known as WiseTech or Xero, but $1 billion tech company Hansen Technologies has been the quiet achiever of the ASX-listed tech stocks. But, it’s always put profit before fast growth.
For the last decade, the CEO of $1 billion listed software company Hansen Technologies, has watched on as valuations of young, unprofitable tech companies were sent soaring in the name of fast growth.Rather than join them in chasing blue sky dreams, Hansen stuck to what he’s always done – running a stable, predictable, profitable business.The Australian Financial Review.
“It was around that time that I saw deregulation was starting ... I knew that with deregulation, customer information systems would require a customer interface, as customers suddenly had the right to choose [their provider]. Systems had to change.That punt paid off, and today the business generates almost $300 million in revenue and profit after tax of $42.2 million.The company has been listed on the ASX since 2000 and reached a peak share price of more than $6.59 in November 2021.
Despite having a $1 billion market capitalisation, the company has flown under the radar in comparison to its software peers such as WiseTech, Xero and TechnologyOne.“It’s due a little bit to me that it hasn’t been a widely publicised story. We’re a public company, but the people we sell to globally are not looking at Hansen based on its history, but on its applications,” he says.
In the ’90s the wave of deregulation created opportunities for competitors to emerge in both the telecommunications and utilities sectors, creating opportunities for Hansen to broaden its customer base. Hansen says the company has made around 30 acquisitions, and he considers them all successful – meaning they’ve delivered a positive return on investment. Much like fellow acquisitive software company WiseTech, he says the company’s acquisition process is well-oiled, with integrations taking only 90 days on average.but after a six-week exclusive due diligence period, the takeover talks collapsed.In 2023, analysts expect Hansen to record modest revenue growth.
This, Hansen says, is because valuations got too heated. But, he’s confident the business will do a deal in the next 12 months.
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