2010 Media Releases

Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) has initiated coverage of Reckon Ltd (ASX: RKN) with a Hold rating.

Research analyst Jennifer Kruk initiated coverage and said, “Reckon is a well-run business operating in an industry with attractive fundamentals.

“It has high quality defensive growth earnings, a flexible balance sheet and exposure to the growing online accounting software market.”

Reckon is a provider of accounting, personal finance and practice management software and operates in a market which Kruk thinks offers long-term organic growth drivers such as a changing regulatory landscape and increased penetration from online. “The move to online accounting software should further improve the quality of Reckon’s earnings as it provides additional recurring revenue,” Kruk said.

“We expect limited price deflation and margin compression in the shift to online based on current price positioning.”

Deutsche Bank’s Hold rating is based purely on valuation with downside risks identified as development risk, increased online competition and price rises not eventuating as predicted.

Reckon was formed in 1987 and listed on the ASX in July 1999. The company provides a full suite of accounting, legal, practice management, corporate service and personal wealth management software and operates predominantly in Australia and New Zealand with smaller operations in the UK and US.

For further information, please contact:

Amy King +61 (0) 2 8258 2505