Objective Corporation has software products that can handle common problems or manually intensive tasks local governments and businesses in highly regulated sectors undertake on a daily basis as well as to store data. This software increases the ease, security and efficiency with which such tasks can be accomplished.  

Objective Corporation has software products that can handle common problems or manually intensive tasks local governments and businesses in highly regulated sectors undertake on a daily basis as well as to store data. This software increases the ease, security and efficiency with which such tasks can be accomplished.

In FY25, the company made $123.5m revenue and a $35.4m profit. Annualised Recurring Revenue was $120m, up 30%. Crucially, the company continued to edge towards its goal of having 100% subscription software. It was also able to reinvest 30% of its revenue into R&D. All core segments saw growth including Content Solutions, Regulatory Solutions and Planning & Building — with Planning & Building ARR growing fastest

Xero (ASX:XRO) is one of the ASX’s best-performing tech stocks over the last decade, offering accounting software helping SMEs do business. Although the company was caught up in the Tech Wreck of 2022-23, shedding half of its value across that calendar year, it has bounced back with a vengeance in recent months, and we think there's more growth to come in FY25.

Xero is all about helping small & medium sized businesses do business. The company, which has over 3 million subscribers, primarily sells accounting software that helps businesses keep books, pay bills and send invoices. But it has gradually developed features useful beyond book-keeping, such as storing files, converting currencies, keeping track of inventories and creating professional quotes.

Clearly, Xero is an essential service to its customers….it’s very hard to switch it off just to save a few bucks. And what incentive is there to switch to another solution like an MYOB? Very little. Whatever few bucks would be saved, would be lost in the long-run. Xero’s tools are estimated to save its customers on average 5.5 hours of manual work per week. We guess that is why its churn is less than 1%.

As if that wasn't good enough, the company continues to innovate over time, is growing faster outside Australia and New Zealand than outside, made its first profit in FY24 and still has some room for growth.

The company believes the TAM (Total Addressable Market) is NZ$100bn and that is just the top 3 jobs its software is used for – Accounting, Payroll and Payments. Adjacent Tasks, including other tasks such as inventory, CRM and project management, could be another $39bn. The company has the explicit goal of doubling revenues by the end of FY27.

In FY25 – the 12 months to March 31, 2025 – the company recorded: NZ$2.1bn in revenue (up 23%), 4.41m subscribers (up 6% and 254,000 from 12 months prior), $45.08 in average revenue per user (up 15%), an 89% gross margin and a $227.8m profit (up 30% from the year before and marking the second straight year of profitability).

PFP is the second largest funeral provider, but you may not have its name before. This is because it is an owner of several franchises and we’d imagine you will have heard of some of them – White Lady Funerals and Simplicity Funerals just to name a couple.

Death is one of life’s two certainties. But it is also worth noting that funerals are a 24-hour, labour-intensive business with extensive planning and various facilities. And none of this comes cheap. Deaths in Australia are set to continue to grow in the years ahead. And Propel is the 2nd largest provider in the market with operations in >144 locations.

Its full year result for FY25 was $225.8m revenue (up 8%, ahead of guidance and purportedly a company record) and a $21.6m profit (up 2.2%). It paid 14.4c per share in dividends and closed the period with $143m in available funding. 22,602 funerals were performed (up 4.4%) and its average revenue per funeral was $6,721.

Consensus estimates for FY26 call for $241m revenue and $0.17 EPS, with the latter representing a $23m profit. Then in FY27, $254m revenue and a $26.2m profit. The mean target price is $5.91, a 14% premium to the current price. Its P/E is 29x, its EV/EBITDA is 14x and its PEG is 2.1x.

Capricorn is riding the waves of the gold boom. flagship project is the Karlawinda Gold Mine, near Newman in WA’s Pilbara. The deposit was discovered by IGO (then known as Independence Group) back in 2008 and Capricorn bought it in 2016.

It entered production in the middle of CY21 (right on June 30) on time and on budget. Prior to entering production, the plan was for it to be a 100-120,000 ounce a year mine. So far so good, it has produced over 120,000 in the last 2 years.

Karlawinda is an open pit mine that is anticipated to last another 10 years and possesses 1.25Moz Ore Reserves and 2.23Moz Mineral Resources. This does not account for the prospect for further discoveries at the project, which could enable a mine life extension.

But Capricorn Metals is hoping to do the same with Mt Gibson, a historic gold mine in the Murchison region of WA that had produced >868koz gold between 1986 and 1999. The project was mothballed for 30 years due to low gold prices in the 1990s – we’re talking A$450/oz – and remained mothballed for 20 years. Capricorn picked it up in December 2021 when it was granted tenure.

Ever since, the company has built up a 1.45Moz Ore Reserve Estimate, with an operation delivering A$1.2bn in free cash flow and with an NPV of A$828m. It anticipates an average of 152kozpa for the first 7.5 years and a full mine life of 10 years. Again, the company thinks it can extend this, given the average pit depth is only 140m.

Breville is a premium kitchen appliances business with a presence in Australia, Europe and the Americas. It was founded in 1932 – founded from capital obtained from a successful 4-to-1 bet at the 1932 Melbourne Cup.

Breville sells ~$1.5bn in goods each year in over 100 countries globally and caters to middle to higher income earners. It is headquartered in Sydney, has manufacturing facilities in China and regional offices in key markets.

Breville listed in 1999 and has achieved growth of over 2000% since. Investors have been concerned about the impact of tariffs, although its FY25 results were good with a 14.9% RoE and a $135.9m profit, up 15%.

While tariff uncertainty remains, analysts (as evident from consensus estimates) believe there will be some impact but not enough to snap a decade-long streak of bottom line growth.

We think there are three reasons why Breville can grow. First, it’s track record of sales growth. Second, the company’s experience in successfully entering new markets.  The third reason is the market the company is in. Breville offers premium and functional goods, targeted at consumers with higher disposable income.

Even if its consumers are feeling the pinch, they might view upfront investments in Breville’s products – coffee machines, ovens and juicers – as saving money in the long run. And consumers already with appliances and needing new ones won’t put off purchasing a new one for too long.

Intelligent Monitoring Group is a provider of security solutions. It is Australasia’s largest independent security monitoring provider that ensures the safety and protection of over 210,000 businesses, homes, and individuals, round the clock.

The security industry is a highly defensive industry -  immune to macroeconomic conditions. The company has a defensive business model based on recurring revenue on a subscription basis, generated from a sticky customer base including government, personal emergency response, and other commercial customers.

Moreover, the security monitoring industry in Australasia is highly fragmented with a large number of small players. This situation works in favour of larger players such as Intelligent Monitoring Group which can use its strong market and financial position for further consolidation. IMB's DIY solutions can help market penetration - adoption in Australia is lower than overseas jurisdictions and an increased takeup here can help IMB.

FY25 revenue was $174.9m, up 44%, whilst its gross profit was $51.4m (up 10%). The company’s bottom line was in the red by $17.6m and this was up from $3m the year before. But the company claimed it was a successful year claiming it was the first full year it showed industry leadership.

The company is aiming to capture a 25-30% market share in 3-5 years. This will be driven by growth in security solutions in regional areas and among SMEs as well as the shift to AI-based and video analytics solutions.

Moreover, it would not just come from new customers but also from existing customers upgrading as well as services and maintenance from existing customers. Residential and SME customers could last 7 years whilst commercial and enterprise could last 15 years.

BlinkLab has an e-platform that can help diagnose neurological disorders in children such as ADHD and autism. The device consists of a mobile app to collect Data and a Portal to analyse the data and to customise the tests. Although it is not yet FDA approved, BlinkLab has completed roughly 6,000 individual tests.

The advantage is that it will be a specific check for these conditions as opposed to a general subjective judgement, as well as cheaper than the typical $1-5k cost for a typical evaluation.

The company is conducting a clinical trial to obtain FDA approval (which is aspired in mid-2026), followed by CE Mark approval in Europe. It plans to commence the trial later this year and it will examine the ability of the app to diagnose autism in children between 2 and 6 years of age.

Universal Store is a chain of casual fashion stores aimed at Millennial and Gen Z customers (think 18-35 year olds). Universal Store has 79 stores across Australia, which tend to be in major shopping centres, as well as a further 20 or so stores exclusive for particular brands like Perfect Stranger, and the group makes 14% of its sales online. Both curated third-party products and private brand products are sold in-house, although the former dominates.

It is a good business, but has been hit by perceptions that its customers will cut back their spending because they feel the brunt of the cost of living crisis. We think the recent Taylor Swift shows and the merchandise spent by them (estimated to be over $60m at the concerts alone) show that they will still spend when they perceive value.

In FY25, Universal made $333.5m revenue (up 15.5%), $54.6m underlying EBIT (up 16%) and a $34.8m underlying profit (up 15.2%). Its statutory profit was $23.3m, down 32% due to a $13.6m goodwill impairment expense. It paid 38.5c per share in dividends (representing an 80% payout ratio) and closed the period with $17.2m cash and no debt.

ResMed (ASX: RMD) is a global medical technology company focused on diagnosing and treating sleep disorders, particularly obstructive sleep apnoea, along with other respiratory conditions. The company is best known for its continuous positive airway pressure (CPAP) devices.

The company benefits more than it otherwise would because it offers in-home solutions and sleep apnea can take a while to diagnose, meaning customers come through the door slowly but steadily.

The potential for tariffs have worried investors. Even though the company is exempt, it is seeking to double its US manufacturing footprint.

In FY25, revenue increased 10% to US$5.1bn, its gross margin was 59.45%, operating cash flow of $1.8bn, and its EPS was $9.51. The latter figure translates to a net profit of $1.4bn, which was up 37% from the year before.

Pexa is named after its platform for electronic conveyancing. Conveyancing is the process of transferring properties and their legal title, something that occurs when properties are transferred between different owners or when owners refinance their properties with different lenders.

Pexa began in 2010 after the Council of Australian Governments (COAG) agreed to digitise and automate conveyancing. Conveyancing fees are paid as part of a property’s settlement and substantially vary depending on the nature of the transaction, but are typically between $200 and $2,000. 

Back in 2017, only 20% of all refinancing transactions were completed on Pexa. But now, it processes 99% of all refinancing transactions and 80% of property transfers.

The opportunity with Pexa is that it is expanding into the UK, a market potentially thrice as large as Australia and where even if it may not have a legal monopoly, it could have a practical one because there is no one doing what it is.