Hansen Technologies share price plunges 7% despite record dividend

The Hansen Technologies Limited (ASX: HSN) share price is tumbling following the release of the company’s full-year earnings.

The $1 billion All Ordinaries Index (ASX: XAO) energy, water, and communications-focused software and services provider’s stock opened 1.8% lower at $5.55 and has continued to dive.

Right now, the Hansen share price is $5.24, 7.26% lower than its previous close.

Hansen share price tumbles on full-year earnings

Here are the key takeaways from the ASX tech company’s financial year 2022 (FY22) results:

• Revenue came in at $296.5 million – down 4% on that of the prior corresponding period (pcp)
• Statutory net profit after tax (NPAT) slumped 27% to $41.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 16% to $99.9 million
• Basic earnings per share (EPS) of 29 cents – a 21% fall
• Declared 5 cent, 30% franked final dividend, bringing its full-year payout to a record 12 cents

While its results might look discouraging, they are significantly brighter when adjusted for a prepaid licence received from Telefonica in FY21 that generated $21 million of revenue.

Such adjustments see Hansen’s revenue lifting 3.4% year-on-year and its EBITDA rising 1.7%. Meanwhile, its NPAT is suddenly 7.4% higher while its basis EPS has risen 5.4%.

The company’s free cash flow also exceeded $63 million in FY22. It used that to pay down borrowings, fund dividends, and build reserves.

What else happened in FY22?

The major news from Hansen’s camp last financial year was of a proposed takeover offer put to the company by BHG Capital.

The firm posted a $6.50 per share bid for the tech stock in June 2021 before withdrawing the offer in September. The Hansen share price sunk 9% on the back of the retraction.

What did management say?

Hansen CEO Andrew Hansen commented on the company’s earnings, saying:

Despite all the headwinds of the past 12 months, I am incredibly proud that Hansen continues to build on its more than 50 years of sustainable, profitable, and cash-generative growth.

The FY22 result reinforces the long-term resilience of our business – a business where we consistently put our customers and our people at our heart to deliver mission-critical software solutions to the essential sectors of society.

What’s next?

The company plans to continue working towards strategic growth in its existing markets and opportunities to expand into other markets. Hansen said:

We are confident in our people, in the strength of our growing talent pool spread across the world, and in the investment that we have made in our global sales and mergers and acquisition teams, which combined will see continued organic and inorganic growth delivered to our shareholders over time.

Hansen Technologies share price snapshot

Today’s fall has plunged the Hansen Technologies share price into the long-term red.

It’s currently trading 2% lower than it was at the start of 2022. It has also fallen 13% since this time last year.

For comparison, the All Ordinaries Index has dumped 9% year to date and 6% over the last 12 months.

The post Hansen Technologies share price plunges 7% despite record dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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