Business News

Class reports strong profits

Class recorded a 71 per cent increase in net profit after tax (NPAT) to $5.83 million for the year ended 30 June 2016, maintaining its ability to pursue new business opportunities going forward.

The business also reported a 69 per cent increase in earnings before interest, tax, depreciation and amortisation.

The increases were before one-off costs in relation to the company’s initial public offering (IPO), the company said.

After IPO transaction costs were taken into account, NPAT was $5.2 million, up 53 per cent.

Total revenue for the year grew by 45 per cent, primarily driven by an increase in billable portfolios.

“Class’s financial performance demonstrates a fast growing business,” Class chief executive Kevin Bungard said.

“Following the positive results of this financial year, we remain well positioned to take advantage of new business opportunities as they arise.”

Class’s billable portfolios, boosted by the signing of Findex, increased by a record 30,618 in the last 12 months.

At 30 June 2016, Class had a total of 112,441 billable portfolios, including 110,614 billable SMSFs on the Class Super product.

Class Super’s share of the SMSF market was 19.2 per cent at 30 June 2016, off an estimated total market of 576,000 SMSFs.

In addition to strong growth in sales of Class Super there has been increasing interest in the company’s non-SMSF solution, Class Portfolio, which has experienced relatively strong growth in billable portfolios since its official release in October 2015.

It had close to 2000 billable portfolios as at 30 June 2016.

Earlier this month, Class announced the availability of client messaging, which provided a simple and secure way for accountants and administrators to exchange messages and documents with their clients.

The new feature was developed in response to the industry trend of people relying on their smart phone or tablet as their means of interaction with service providers.

Being able to quickly send messages, and even take a photo of a document from a smart phone and send it through to an administrator, allows action items to be addressed without delay, Class said.

Messages can also be easily categorised and tracked across all clients.

Further, configurable notification settings alert clients when they have new messages, and can also remind them if they need to respond to their accountant or administrator.

“Class’s client messaging is as simple to use as the texting and messaging programs available on smart phones but with the filtering capabilities of email,” Bungard explained.

“This new capability will enable accountants and administrators to further enhance their client experience and boost service levels.”

Documents exchanged via client messaging are automatically added to the Class document management system, which was released earlier this year.

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