Class Ltd profit up 19% in first half 2017/18

Class Ltd, which makes Class Super and Class Portfolio, grew its profit by 19% in the first half of the 2017/18 financial year.

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

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

Sales revenue for the half year ending 31 December 2017 was up 21% to $17.010 million, with net profit after tax up 19% to $4.297 million.

At the end of the calendar year Class had 158,153 accounts, which included 154,053 SMSFs using Class Super.

29% of Class Super’s 1,287 customers are also using Class Portfolio.

For the half year, there were 13,363 new Class Super accounts, up 9.5%, across 127 new customers, up 10.9%. Class says it has 25% SMSF market share.

“As we have noted in previous market updates, AMP has a stated intention to, over time, migrate their funds to their own software. We understand that AMP has now commenced this migration process. No notice or timeframe for the completion of this migration has been provided.”

According to the release AMP had 9,500 funds on Class, as at 6 February 2018, representing less than 5% of ‘Annualised Committed Monthly Revenue’ (ACMR).

Class Ltd declared a fully franked interim dividend of 2.5 cents per share.

SMSF Annual Return lodgements are 14% behind this time last year, potentially as a result of the recent super reforms, says Class Ltd, which expects adoption of automation will accelerate further over coming years.

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