Wynyard shares climb to record after latest Middle East contract signing
By Paul McBeth
Jan. 7 (BusinessDesk) - Wynyard Group shares climbed to a record after the intelligence software developer announced its latest contract win in the Middle East.
The stock rose as high as $1.38 and recently traded at $1.36, up 14 percent on the day. It’s rated a ‘hold’ by two analyst recommendations compiled by Reuters, with a median target price of $1.40.
United Arab Emirates money exchange GCC Exchange will use Wynyard’s anti-money laundering software to enhance its ability to detect, investigate, and report suspicious activity, the Auckland-based company said in a statement. The new contract, whose value wasn’t disclosed, is the first Wynyard has announced this year, and adds to four deals signed off through November and December.
“The continuing good news of the number of contracts they’ve been picking up is giving a lot of confidence to investors in that stock,” said Grant Williamson, a director at Hamilton Hindin Greene in Christchurch. “It’s a pretty big move up there and there are not a huge number of participants in the market, so I’m sure we’ll see some sellers at some stage.”
In November, Wynyard affirmed earlier guidance that it was on track to meet its 2013 sales forecast of $21.5 million, while bringing forward recruitment of new sales and services staff to manage next year’s growth pipeline, adding between $1 million and $1.5 million to the forecast operating expenditure of $25 million for the 2013 calendar year.