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

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news