Wynyard sees annual sales of $31 mln, eyes acquisitions
By Paul McBeth
May. 26 (BusinessDesk) - Wynyard Group, whose shares have doubled since the security software company's listing last July, expects annual sales will be 15 percent higher than the prospectus forecast, and is looking at potential acquisitions to drive faster growth.
The Auckland-based company expects revenue of about $31 million this calendar year, with sales execution in the second-half seen as critical, according to presentation slides for today's annual meeting published on the stock exchange. Wynyard forecast sales to grow to $27 million in the July offer document, and first announced it would beat that target when posting its 2013 results, which included a 63 percent boost in sales to $21.7 million.
To continue the pace of growth, Wynyard said it will seek bigger deals with greater opportunity for expansion, and is also investigating the "potential for targeted acquisitions to accelerate market penetration and capture market share." Wynyard had cash to invest of $44 million as at April, according to the presentation slides. Wynyard's costs and cash position were in line with forecast.
The intelligence software developer raised $35 million in March in an institutional placement and share purchase plan to fund its growth aspirations.
The shares rose 1.3 percent to $2.30 today, twice the $1.15 listing price last year. The stock is rated an average 'hold' based on two analyst recommendations compiled by Reuters, with a median target price of $1.85.