Business News

Class posts 19 per cent half-year profit

Administration software provider Class today reported a net profit after tax of $4.29 million for the half-year ended 31 December 2017, up 19 per cent on the prior corresponding period.

“Class’s continued growth demonstrates a strong business which remains the market leader in cloud-based SMSF accounting software,” chief executive Kevin Bungard said.

“Our recent investment in the non-SMSF product is also paying off with growing market penetration of our Class Portfolio product.”

At 31 December, the firm had a total of 158,153 accounts, including 154,053 SMSFs on the Class Super product.

Class Portfolio continued to grow this year and had 4100 accounts as at 31 December.

Twenty-nine per cent of Class Super’s 1287 customers are now using Class Portfolio.

The annualised committed monthly revenue (ACMR), representing the 95 per cent of sales revenue Class earns from software licence fees, increased by 19 per cent on the prior corresponding period to $33.7 million.

As of 6 February, AMP had 9500 funds on Class and accounted for less than 5 per cent of ACMR.

“As we have noted in previous market updates, AMP has stated an intention to, over time, migrate their funds to their own software,” Class said.

“We understand that AMP has now commenced this migration process. No notice or time frame for the completion of this migration has been provided.”

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