Positive mention in afr Hansen, a billing software provider in...

Positive mention in afr

Hansen, a billing software provider in energy and communications, is growing steadily overseas through measured acquisitions, says Steve Black, of Pengana Emerging Companies Fund.“We like that Hansen is making small acquisitions of companies that already have software embedded within their clients. That reduces acquisition risks and aids earnings visibility.”Hansen earns more than three-quarters of its revenue overseas. Its share price soared in 2015 but returns have been modest since then, despite strong operational gains. Hansen posted 30 per cent revenue growth in 2020 and record earnings and dividends.

Hansen expects to accelerate its mergers and acquisitions strategy when COVID-19 restrictions are lifted, and has built an internal M&A team. Hansen has made more than 30 acquisitions and believes its market remains fragmented and localised.“Billing software is mission-critical technology for companies, has high customer retention rates and ‘sticky’ revenue,” says Black. “Hansen has good potential to build a larger global business in the coming decade and drive faster earnings growth.”