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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news