Hansen Technologies signs significant agreement with Telefonica and increases full year guidance
Hansen Technologies Limited (ASX: HSN) (“Hansen”), a leading global provider of software and services to the energy, water and communications industries, announces that it has executed a Master Agreement (the “Agreement”) with Telefónica Germany GmbH & Co. OHG (“Telefónica”) to licence via a prepaid subscription for Hansen’s Cloud Native Communications product suite to support Telefónica’s operations within Germany.
The Agreement is for a fixed initial term of five years with associated revenue of approximately $25m.
“We are delighted and very proud to be engaged with Telefónica. This agreement is testament to and a ringing endorsement of the Hansen Communication Suite and Hansen’s ability to continually evolve as a valued partner to our customers” said Andrew Hansen, Hansen’s Global Chief Executive Officer.
Increasing guidance provided at 1H21 results
Due to this strategically significant customer win we are upgrading our FY21 guidance:
• Revenues: $316m - $326m (constant currency), $306m - $316m (reported).
• Underlying EBITDA: margin 37% - 39%.
The resulting FY21 EBITDA margin is higher than our expected long-term margins of 32% - 35%. This is the direct result of all licence revenue ($21m) being recognised in 2H21 as is required under IFRS.

HSN Remserv to be one of those quiet achieving companies that are so boring no one seems find interesting. Their financial performance is also a bit difficult to interpret as they go through cyclical fluctuations. After acquiring a company all the metrics and debt look bad, then once it has been "Hansonised" which takes a year or two, everything starts to look rosy again. 
the acquisitions are getting larger which magnifies this fluctuation. 
 

most significantly, for me, is that margins have recently started to improve significantly (and see above announcement for further good news) and hence EPS have markedly increased (from a steady 8 or 9c to 15).

There is a lot to like:

it provides critical software services to utility type companies which are incredibly sticky

has high insider ownership

it sits on an undemanding multiple, pays regular dividends that have steadily increased over the years

Has a long runway for its growth model

and to date hasn't made a bad acquisition- its executive team act like long term owners, not management aiming for expansion fuelled bonuses

DISC: I hold in Super. Think it's perfect for a long term, boring but consistent 15% CAGR (actually 23%, but use 15 as a great metric to choose for these types of investments, like IFT)