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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news