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

 


Jade Software returns $14.9 mln to investors from Wynyard

Jade Software returns $14.9 mln in share buyback after Wynyard float

By Paul McBeth

April 28 (BusinessDesk) - Jade Software, the Christchurch-based software developer, returned $14.9 million to shareholders via a buyback after struggling to find compelling new opportunities after the initial public offer of former subsidiary Wynyard Group.

The company’s coffers were swelled by the July float of Wynyard, with net cash rising to $30.7 million as at Dec. 31, from $7.6 million a year earlier, according to its annual report, filed with the Companies Office. Jade bought back 24.4 million shares at 61 cents apiece on Feb. 21, about 55 percent of the shares on issue.

Jade was spun out Wynyard as a standalone entity in January last year before the mid-year float when about 64 percent of the company was sold to the public. Wynyard’s shares have since soared to $2.33.

Chair Ruth Richardson said the board considered its future strategy in the wake of the Wynyard IPO, weighing up prospects across its lines of business and how much cash was needed to accelerate revenue growth and repay debt.

“In the absence of other compelling business opportunities to deploy the remaining surplus cash, the board determined to return this to shareholders in the form of a $15 million share buy-back,” Richardson said. “This return of capital means shareholders will have had the advantage of two liquidity events in recent times, a fitting reward for their patience over the business building years.”

The Wynyard float pushed Jade into the black for the first time since 2009, with the group reported a net profit of $7.5 million in the 12 months ended Dec. 31, from a loss of $5.2 million in 2012. Jade made a loss of $8.1 million from continuing operations, with discontinued operations contributing a profit of $15.6 million.

Earnings before interest, tax, depreciation and amortisation plunged 84 percent to $737,000, including a $4.3 million cost from the carving out of Wynyard. Revenue gained 14 percent to $26.5 million.

Jade managing director David Lindsay said the company plans to transform its master terminal unit into “a new logistics company with additional product offerings being brought to market” in 2014, as it seeks to become the world’s largest supplier of terminal operating systems to mixed cargo ports.

The company will combine its digital and enterprise units, which provide IT services and support to corporate customers, into one brand, known as Jade Business Solutions, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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