Not every company inside the S&P/ASX 300 Index (ASX: XKO) has face-melting growth — but maybe they don't all need it.
On the contrary, many investors are seeking the sanctuary of steady profit machines during these unpredictable times. Fears of a rate hike-induced recession are renewing investors' prioritisation of predictability and financial stability.
In a recent interview conducted by Livewire, long-time investing experts Josh Clark and Gary Rollo, from QVG Capital and Montgomery Investment Management respectively, showed their enthusiasm for one ASX 300 tech share that fits the bill.
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This ASX 300 share strikes the sweet spot
It would be hard to find a tech share in the ASX 300, or at all for that matter, that hasn't suffered at the hand of weaker markets recently. To highlight this, the S&P/ASX All Technology Index (ASX: XTX) is nearly 32% underwater compared to the start of the year.
Despite this, Clark and Rollo were in agreeance that billing solutions company Hansen Technologies Limited (ASX: HSN) is a buy.
Unlike its potentially more exciting tech peers, Hansen doesn't boast +30% revenue growth. In the 12 months ending 31 December 2021, the company increased its revenue by 5% to $314.4 million.
Commenting on this fact, Rollo shared his perspective on Hansen, stating:
Look, it's not a high growth type business, it's got stable industry fundamentals in the sector that it plays in. It's basically giving you market-level growth, but in a business model that's a bit better than the market. You've got a founder-led management team where they've given some punchy targets for years two, three, four, and five; in terms of what they think they can get to — M&A's got to be part of that story.
Likewise, Clark also believes the founder-led team is a strong selling point. Most importantly, this includes the founder and CEO Andrew Hansen, who holds a 17.5% stake in the company.
Furthermore, Clark explained this ASX 300 tech share's enviable track record of value creation, stating:
[T]hey've been able to go and purchase businesses with sticky revenues, retain those revenues, but then improve that margin profile of those businesses over time. And that's where a lot of the values come from.
What has Hansen been up to?
In the past month, Hansen Technologies has secured an extension with an existing customer and signed a new multi-year contract.
The extension involved one of the Nordic region's largest energy service providers, Gasum. According to the release, the extension will see Gasum use Hansen Trade (an energy trading solution) for more use cases.
Additionally, the ASX 300 tech share landed a multi-year agreement with SwissGrid to deploy Hansen MDM (meter data management).
