COVID-19 has been good to furniture retailer Nick Scali

Furniture retailer Nick Scali (ASX:NCK) and software stock Elmo Software (ASX:ELO) both reported strong full year results despite COVID-19.

Over the next few weeks, ASX companies will be releasing their full financial year results with the deadline being the month’s end.

While many stocks will inevitably be affected, Nick Scali still saw solid results despite being forced to close stores in April.

It made an underlying profit after tax at $42.1 million from $262.5 million in revenue. The former was above its expectations while the latter was only 2 per cent down on last year.

Lockdowns a blessing in disguise

Lockdowns resulted in consumers having more time for home projects. Managing director Anthony Scali noted this, stating the broader furniture industry witnessed “unprecedented year on year growth”.

The company will be paying a dividend and reported that strong trading momentum continued into July.

Even allowing for the Melbourne lockdowns, it anticipates first half profit to be up at least 50 per cent compared to the prior corresponding period – subject to no further extensions.

The company is still targeting over 80 stores eventually, up from its current total of 58.

Nick Scali was one of this morning’s biggest gainers, surging 17 per cent and is now above pre-COVID levels.

Nick Scali (ASX:NCK) share price chart

Software resilient to lockdowns

Elmo Software CEO Danny Lessem said the year had not been one without challenges but nonetheless one of robust growth.

The cloud based HR and payroll software provider reported Annualised Recurring Revenue (ARR) of $55.1 million, nearly 20 per cent up on the prior corresponding period.

ARR is a revenue metric excluding one-time revenues that are included in headline revenues – it’s purely revenue that will persist.

Nonetheless, its statutory revenue was up too, by 25 per cent to $50 million. Furthermore, it now counts 1,682 clients on its books; a figure up 25 per cent from the prior corresponding period.

Lessem predicted more growth in the months ahead.

“At this time, businesses are recognising the benefits of cloud-based technologies to deliver flexible and innovative workplace solutions,” he said.

“We are well placed to capitalise on anticipated tailwinds in the adoption of cloud-based business tools, including HR technology.”

While shares saw a slight decline this morning, they remain in positive territory on a 12 month basis.