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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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