Aconex keeps its focus on growth

Construction software provider Aconex is to push on with its combined strategy of acquisitions and organic growth.

Aconex co-founder and CEO Leigh Jasper.

Construction software provider Aconex looks set to push on with its combined strategy of acquisitions and organic growth, with company founder and CEO Leigh Jasper saying there is plenty of market share left for the taking.

The Melbourne-based company posted a 50 per cent jump in revenue to $123.4 million for the year to June 30, largely buoyed by its purchase of Germany-based Conject Group.

“In the short and medium term we’ll look at bolt-on technology acquisitions, and in terms of large acquisitions obviously we want to do a good job of integrating the Conject acquisition before we do too much,” Mr Jasper said. “But there are certainly more opportunities we will look at down the track.”

Mr Jasper added that Aconex would not need any more cash, unless it was to pursue another heavyweight takeover.

“Clearly if we were to do more acquisitions we’d need to go back to the markets, but we’ve got $50m on our balance sheet and we’re generating cash,” he said.

Aconex’s full-year results were broadly in line with expectations, with the company posting gross margins of 75 per cent for the period. Its total cash and cash equivalents rose to $52.5m, compared with $29.1m in the previous year, and net operating cash flows from core operations rose from $6m to $9.2m.

Aconex’s shares had a volatile day, down as much as 12.5 per cent in the morning, after the company’s full-year statutory net profit after tax fell almost 51 per cent. But they recovered to close at $7.78, up 12c.

Mr Jasper said the profit drop was the result of an accounting entry rather than a shift in any fundamentals. Aconex’s operating net profit for the period was up from a loss of $2.5m in fiscal 2015 to $9.9m.

“On an underlying basis our EBITDA went up significantly; last year we had a one-off benefit from some revaluation of an accounting entry. Last year we said to the market we were negative on an underlying and operating NPAT basis and we’ve gone to positive this year,” he said.