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

 

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news