Fronde Announces Jump in Profit After a Year of Strong Growth
Wellington, 23 May 2013 - Fronde Systems Group Ltd, a leading software development and cloud integration firm operating in New Zealand and Australia, today announced its financial results for the year ended 31 March 2013 representing a strong year of growth in all key performance indicators.
Total revenue for the period was $59.9 million, a 25.8% increase over the prior year of $47.6 million.
Earnings Before Interest and Tax (EBIT) was $4.0 million compared to $2.0 million in 2012, an increase of 100% year-on-year. Net profit increased by 145% from 2012 $1.1 million to $2.7 million for the 2013 period.
The board is pleased to announce a fully imputed cash dividend of 4 cents per share to be paid on the 28th June 2013 with the date of record being 7th June 2013.
Fronde CEO Ian Clarke said “Fronde has enjoyed sustained top line growth this year in a repeat of the prior two years, but with a substantial improvement in the profitability of the company. This was accomplished while continuing to make substantial investments in new service offerings, sales capacity and marketing initiatives to drive continued growth in the future.”
Clarke said Fronde has rounded out its cloud offerings with the addition of Amazon and NetSuite to its existing partners Google and Salesforce.
“Fronde is now in an ideal position to provide our clients with on-premise, locally hosted or public cloud solutions for a wide range of enterprise requirements. Our continued growth is a result of our customers engaging with the value that our partner cloud solutions bring and also the improvement in our New Zealand software development business. I look forward to an exciting year ahead as we further pursue our growth agenda.”
Clarke also confirmed the release of the 31 March operating results means all shareholders now have full information and the “Don’t Sell Recommendation” issued to all shareholders on 11 April 2013 is no longer applicable.
Fronde recently acquired a leading Australian NetSuite reseller and was featured in an announcement by Armillary Private Capital last week as the second highest performing New Zealand listed company on a Return on Capital Employed (ROCE) basis, with a 166.8% ROCE for the 2012 year. Fronde CFO Amish Vallabh confirmed that the comparable performance based on the 2013 results is 345% ROCE, an outstanding example of efficient use of capital.
“The demand for Fronde’s services and the opportunities we continue to uncover requires us to carefully manage our resources in order to facilitate this growth,” Clarke said. “Choosing what we do and what we say no to is critical to sustaining this performance.”