One of the best performers on the All Ordinaries index on Wednesday has been the Objective Corporation Limited (ASX: OCL) share price.
The software company's shares are up 10% to an all-time high of $6.05 in afternoon trade.
This makes them the second-best performer on the index behind Bravura Solutions Ltd (ASX: BVS) and ahead of Citadel Group Ltd (ASX: CGL).
Bravura's shares are up 14% after a broker upgrade and Citadel's shares are up 8% following a spot of insider buying.
Why is the Objective Corp share price storming higher?
Ahead of its annual general meeting today, Objective Corp released its event presentation to the market.
That presentation provided the market with a breakdown on its performance in FY 2019 and its expectations for the new financial year.
In FY 2019 Objective Corp was in fine form. It delivered a 15% increase in annual recurring revenue to $46.6 million. This helped lift its overall revenue to $62 million.
On the bottom line things were even better. The company delivered a 23% lift in net profit after tax to $9.1 million. And thanks to its strong operating cash flow, the Objective Corp board declared a 6 cents per share dividend.
FY 2020 outlook.
The good news is that management is confident that its strong form can continue in FY 2020. According to the release, it expects material growth in both revenue and profitability this year.
This is expected to be driven by continued strong growth in its annual recurring revenues, which accounted for 70% of total revenue in FY 2019.
In addition to this, the company's strong cash balance means it has the option to accelerate its growth with acquisitions. Management intends to further develop a pipeline of opportunities and will assess numerous potential targets.
All in all, thanks to the quality of its software and its large addressable market, the future looks bright for this growing company.
