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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news