Class sees NPAT fall, acquires Topdocs

Class has announced a 25% increase in its operating revenue of $54.9 million for financial year 2021, a decrease in its net profit after tax (NPAT), and its acquisition of legal documentation software provider, Topdocs.

In announcements to the Australian Securities Exchange (ASX), the self-managed superannuation fund (SMSF) solutions software provider said its roll forward revenue as at 30 June, 2021, was $59.8 million, up 21.5%, and its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was $21.9 million, up 15%.

However, Class’ NPAT was down 46% to $3.7 million. This included the one-off net loss of $3.2 million for Philo Capital, the managed account service. Last month, Class concluded that its investment in Philo by way of a convertible note prior to 2019 was “not on strategy” and that continuing to invest in Philo was not in the best interests of Class shareholders. Class would either convert or redeem the note on 31 August, 2021 and expected a material shortfall of around $3 million in value.

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Class said it acquired Topdocs for $13 million, which comprised $11.7 million in cash, and $1.3 million in Class shares escrowed for 18 months.

The transaction had a target completion date of 1 September and had an estimated revenue contribution of $3 million this financial year. Topdocs customers would transition onto the NowInfinity platform.

The acquisition followed Class’ acquisition of ReckonDocs in March, 2021, Smartcorp in August 2020, and NowInfinity in February 2020. Class noted that it had identified a number of further opportunities to grow through acquisition.

Class also announced a fully franked dividend for 2H FY21 of 2.5 cents.




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