Strong business performance reaps rewards

31st May, 2011

Strong business performance reaps rewards

Leading technology services business, Fronde Systems Group Ltd, has announced double digit revenue growth and an improved operating surplus. “This is a substantial endorsement of our strategy” says Board Chairman, Wayne Norrie.

Fronde has produced a 37% lift in revenue levels from the previous year and a turnaround in the profit result for the full year 2011. Total revenue is up from $24.8m to $34.2m and profit after tax is $0.8m from a loss in the previous financial year of $1.8m.

The Group’s cash position has improved, finishing the year with a cash balance of $1.061m. This improvement in cash is as a result of attention to debtors and tight management of capital investment.

The focus has been on a return to profitability through tight execution of the strategy, as well as revenue growth and improving the working capital position of the company. Management has focused on a number of business areas to drive performance. These were building an annuity revenue stream with Google’s Enterprise solutions in NZ and Australia, winning significant new recurring business, and improving performance of the Auckland branch.

The fully imputed dividend of 4 cents per share will be paid on the 30th June, 2011 to shareholders on the register at the close of business on the 1st June, 2011. The annual general meeting will be held at 12 noon on Thursday 28th July, 2011 at Fronde’s Wellington office.

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About Fronde: Fronde is a leading technology services business, that is best known for delivering IT solutions to major organisations in the government, utilities and finance sectors. Fronde has a depth and breadth of capability around technology services and solutions including software development, cloud computing in our partnership with Google, and mobile application development.

Fronde are trusted to build complex, high quality software systems that get the job done for some of New Zealand’s most mission critical services. Fronde built, and continue to support, the largest non-bank lending system in the country. One of the systems we have built processes over 1 billion requests per day (or 10,000 per second). Fronde integrated the New Zealand wholesale electricity market system, and New Zealand’s most successful mobile commerce service ,TXT-a-Park, was created by us.

Fronde was founded in 1992 by David Irving and Chris Comber. Since then Fronde has expanded to over 200 staff in Wellington, Auckland, Sydney and Canberra and remains a Kiwi-owned business.

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