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


Xero says price surge reflects upbeat press, US profile

Xero says share price surge reflects upbeat press, growing US awareness, tightly held register

By Paul McBeth

Jan. 16 (BusinessDesk) - Xero, whose shares soared 333 percent in 2013, has put down a rising share price to positive press, a growing brand in the US and high volatility from being closely held after getting a ‘please explain’ notice from the stock market regulator.

The share market supervisor questioned a 42 percent gain in the Xero share price from Dec. 5 to Jan. 16, since the last price sensitive announcement was made in late November. The shares fell 2 percent to $41.51 today, having reached a new intraday high of $43.30 earlier in the session.

Xero chief financial officer Ross Jenkins responded by saying the Wellington-based company continues to meet continuous disclosure rules, and that it was on track to meet its forecast sales growth of 80 percent in the 2014 financial year.

“We note that the Xero share price has a history of high volatility as a result of a relatively tightly held register,” Jenkins said in a letter to NZX’s market surveillance unit. “We also note that we have seen an increased awareness of Xero in the US (particularly following Xero’s capital raise of NZ$180m in October 2013), and that Xero has been the subject of recent positive media attention in Australia, New Zealand and the US.”

In July last year the company responded to a price inquiry by putting it down to its tightly held register creating volatility. As at May 10 last year, 54 of Xero’s 4,715 shareholders held 83.7 percent of the company, according to its 2013 annual report.

Chief executive Rod Drury is the biggest shareholder with a 17 percent stake, followed by MYOB founder Craig Winkler with 15.7 percent, according to recent substantial shareholder notices.

The company yesterday appointed Chorus sales and market general manager Victoria Crone as its New Zealand managing director, effective from April.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


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>>


International 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news