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

 


Fronde mulls capital raising for Aust push; FY profit climbs

Fronde mulls capital raising for Australian push as FY profit more than doubles

May 23 (BusinessDesk) - Fronde Systems Group, a Wellington-based software and cloud-based services developer, is considering an equity raising to fund a bigger push into Australia after more than doubling annual profit.

Earnings jumped to $2.7 million in the year ended March 31 from $1.1 million a year earlier, the company said in a statement on the Unlisted platform. Sales climbed 26 percent to $59.9 million.

Fronde has kept its shares available for trading on Unlisted since 2006 though it seldom trades on market, with the last recorded transaction being in January 2008 at 50 cents a share. At that price the company would have a market value of about $4 million though Fronde has grown since then, with revenue having expanded almost 90 percent from the 2008 year.

“We’re arguably short of capital for the journey we want to undertake,” chief executive Ian Clarke told BusinessDesk. A decision on capital raising would be made this calendar year and one option would be to bring in an Australian investor who could help drive growth across the Tasman.

Funds would be used to ramp up marketing, building the Fronde brand and increasing sales capability, he said. The company would also need to hire more IT workers.

At the start of this month, Fronde acquired Australia-based OnlineOne, a cloud design and integration business specialising in NetSuite Enterprise Resource Planning (ERP) solutions. No price was disclosed.

Based on the company’s first-half figures, its Wellington head office generated about 78 percent of revenue, Auckland accounted for 9 percent and Australia for 15 percent.

“We have a lot of growing to do in Auckland and the South Island,” Clarke said. “The cloud integration story is very popular for enterprise and the mid-market, as opposed to government which has constraints on using the public cloud.”

Growth is already underway in Australia and the company is in the first year of a new five-year plan, he said.

Fronde will pay a fully-imputed dividend of 4 cents a share.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news