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

 


Successful Integration Lifts Advantage Q1 profit

E-commerce Reinforced as WebMasters Acquisition Completed

Auckland – 4 November 1999 – Advantage Group Limited (NZSE: ADV) today announced a first quarter profit of $1.4 million on revenues of $15.6 million, a result up 9.3% on forecast. This compares with a profit of $232,000 on revenues of $4.76 million for the first quarter last year.
Condensed statement of financial performance (unaudited)

First quarter ended September
(millions)

2000 1999
Total Revenues $15.6 $ 4.7
Net Profit * $ 1.4 $0.23
* after tax and before amortisation of goodwill.
Condensed statement of financial position (unaudited)

As at 30 September 1999
(millions)

Shareholders Funds $26.3
Liabilities $29.3
Total $55.6
Total Assets $55.6

“This result reflects substantially improved company performance over the last year and that is due to three main factors,” says CEO Greg Cross. “Firstly, the strategic growth strategy the company has implemented means that Advantage has achieved size and credibility in a rapidly growing market. Secondly, strong trading in each of the company’s business-to-business e-commerce, retail solutions and POS equipment divisions. Thirdly, the management team’s successful integration of acquisitions Computer Enhancements, PEC Retail and Glazier Systems.
“This is strengthened by the completion of our recent acquisition of leading web development company WebMasters. The WebMasters acquisition fulfils a major part of our plan to become Australasia’s leading partner in delivering integrated end-to-end e-commerce solutions, from development through to transaction processing.
“The positive result confirms our ability to leverage Advantage’s position as one of the largest e-commerce companies in Australasia,” says Cross. “We derive income from designing, developing and implementing Internet software and business-to-business e-commerce applications. According to Business 2.0, business-to-business e-commerce revenues in Asia Pacific alone are expected to exceed US $1 billion by 2001 and are growing at a compound annual growth rate of 75%. We are also focused on achieving significant capital appreciation by taking cornerstone shareholdings in strategic e-commerce ventures. We have taken two such strategic positions to date, in investment company Strathmore and business-to-consumer e-commerce venture FlyingPig.co.nz, and we are looking at other opportunities.
“Joint ventures like this are a superb way for traditional bricks and mortar companies to establish an online presence.
“As new e-commerce standards roll out over the next six to twelve months, we anticipate an acceleration in the trend of traditional businesses looking for technology-savvy businesses to partner with in joint ventures. Rather than trying to create an online business from scratch, a joint venture allows them to quickly leverage their own brand, intellectual property and market strengths alongside Advantage’s e-commerce capabilities. And Advantage knows more about business and smart ways to use complex technology than any other prospective partner.”

Earnings Per Share
As at 30 September 1999

1999 1998
Base EPS 3.28 cents 0.66 cents
Cash EPS 3.69 cents 0.91 cents


ENDS
Company Background
Advantage Group Limited, an NZSE listed company, is a leading supplier of e-commerce and transaction processing solutions in New Zealand, Australia and throughout the Southern Hemisphere. The company has three business units: business-to-business e-commerce, retail solutions and point-of-sale equipment. It provides web development capabilities, software development, transaction processing and funds transfer capabilities to enable end-to-end e-commerce solutions. For more information, please visit www.advantagegroup.co.nz.


FOOTNOTE:
Base EPS is net profit after depreciation, amortisation of intellectual property and taxation and, in this instance, before amortisation of goodwill.
Cash EPS is net profit before depreciation, amortisation of intellectual property and goodwill but after taxation.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news