Jade Revenue up over 36 Percent
Jade Revenue up over 36 Percent
Jade Software Corporation Limited today announced that it had achieved revenue growth in excess of 36 percent year on year for the first half of 2008.
Revenue from operations grew from $16.9 million in the first half of last year to $23.1 million in the six months to 30 June 2008. Growth in total revenue, including one off gains in the comparable period in the prior year, was somewhat less dramatic but still impressive at 17 percent.
Growth was fuelled by two acquisitions during the second half of 2007 and organic growth from existing customers. The two acquisitions were Empower Masterpay, an Australian HR and Payroll IT services company, and Methodware, a global supplier of Governance, Risk and Compliance Software.
Major new projects to ‘go live’ in the first half included harbour and fleet management software for Rio Tinto, HR and payroll for Toll New Zealand, new rules engines for the NZ Electricity Commission, a new operating theatre system for the Department of Health and Families in Australia’s Northern Territories, train scheduling systems for Toronto’s Passenger Rail System and governance, risk and compliance software for Royal Bank of Scotland. Upgrades and extensions with existing customers included UK mortgage processor HomeLoan Management Ltd and health software company Ascribe PLC as well as HR and payroll solutions for the Department of Education in Tasmania and Bendigo Bank.
Jade’s Managing Director Dr. Rod Carr, who joined the company five years ago in July 2003, says that the company has established a reputation for delivering complex software solutions and related services that empower businesses.
Over the past five years the company has grown its revenue from $32.2 million in the 12 month period to 30 June 2004to $45.5 million for the 12 month period to 30 June 2008.
“Early on our focus was on restoring profitability, however with three years of positive profitability and on track for a fourth, the focus has been on investment and growth,” Dr. Carr said.
“Last year we invested over $12 million in acquisitions without recourse to debt or our shareholders. In the first half of this year we invested $2.3 million in software development which was capitalised and a further $1.8 million in software research and development which was expensed; that’s over 17 percent of revenue for the period. In addition we invested over $2 million in marketing, sales and customer management.
“These accelerated levels of investment, one off gains from divestments and contributions from acquisitions make it difficult to compare profitability between the first half of 2008 and the comparable period in the prior year. While EBITDA fell from $6.7 million to $4.4 million for the half-year, EBITDA from continuing operations in the first half of 2008 was 19 percent ahead of the comparable period in 2007.
“Our shareholders have left every cent in the business and have funded our growth and enabled our investment on research and development. We now employ over 340 people, two thirds of them in New Zealand. With 75 percent of our shares held outside New Zealand; foreign investment in Jade has created stability, growth, investment and jobs.
“Looking ahead, our recent successes with major overseas systems integrators such as Thales, Bombardier and CMC are very encouraging, and furthermore we are working at capacity with a full order book till the end of the year,” Dr Carr said.