Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Xero’s Drury ‘very pleased’ with broker support

Xero’s Drury ‘very pleased’ with support from local brokers, instos

By Jason Krupp

Nov. 9 (BusinessDesk) – Xero Ltd., the online accounting software maker, is “very pleased” with the support the company has received from the broking community and rejects suggestions it has struggled to get institutions on board, says chief executive Rod Drury.

He was responding to a BusinessDesk article in which he said local investors were “yet to understand the cloud-based model” and that while Xero talked to local investment community “quite a bit” they hadn’t yet followed through with funds.

Shares of Xero have traded at a record $1.81 in the past two days, having soared 22% since PayPal co-founder Peter Thiel announced last month he had bought $4 million new shares at about $1.49 apiece. The stock was unchanged at $1.79 today.

“I don’t think that there is any doubt that we are champions of the local markets and we are very pleased with the support of the broking community in our early stages,” Drury said in a statement to the NZX today.

Under Xero’s growth strategy, the business isn’t forecast to break even until the second half of 2011 and it burned through $12.9 million in the financial year to March 31, when sales amounted to just $3.4 million. Xero is betting on demand for its cloud-based accounting package aimed at small and medium businesses to win sales in New Zealand, Australia, the U.K. and the U.S.

Bank of New Zealand is listed with a 2.5% holding and Accident Compensation Corp., which typically allocates a portion of funds to smaller equity investments in New Zealand, had 0.8%, according to the 2010 annual report. Drury’s interests hold 27%.

Drury said First NZ Capital had supported the company with two research notes. The brokerage was one of the organisers of its 2007 initial public offering, where the stock was sold at $1 apiece.

Xero releases its first-half results on Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news