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

 


Diligent, with cash pile, mulls growth options, acquisitions

Diligent, sitting on cash, mulls growth options, acquisitions

By Paul McBeth

March 3 (BusinessDesk) - Diligent Board Member Services, which last week restated its financial statements, is mulling options for growth, including acquisitions, as the first port of call for the pile of cash it’s sitting on.

Chief executive Alex Sodi told analysts the first option to use its US$56 million in cash and equivalents would be to grow the business before considering any redistribution to investors.

“We’re a software-as-a-service company – the key is growth when we look at use of cash,” Sodi said. “Can we use it better to grow? I would say that’s what we are going to focus on first.”

When asked whether Diligent was contemplating any acquisitions, Sodi said it’s something the company is looking at in how it uses its funds. He didn’t give details.

Diligent’s board has been mulling ways to use the steadily increasing cash position since 2012, though last year’s accounting woes which forced a restatement of the firm’s revenue figures put that on the backburner.

The company re-filed its accounts on Friday after incorrectly recognising revenue too early under US GAAP accounting rules. The effect of the restatements reduced previously reported revenue by US$4.6 million in the year ended Dec. 31, 2012. Diligent is still reviewing internal controls and will provide greater detail and an updated assessment in its annual report.

The shares rose 2.5 percent to $4.97, and have surged 28 percent this year after investors punished the stock in 2013 over its accounting errors.

Sodi said the company is contemplating a US listing, though no decision has been made.

The company grew in all markets last year, with a faster pace of expansion in Australasia and Europe than in North America, which represents about three-quarters of the firm’s revenue.

Diligent has been looking at ways to expand its offer and expects to make an announcement on a new product in the “next two months or so,” he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news