Strong business performance reaps rewards - Media Advisory Wednesday 9th May, 2012
Strong business performance reaps rewards
Leading technology services business, Fronde Systems Group Ltd, has announced a second year of double digit revenue growth and an improved operating surplus. Board chairman, Wayne Norrie says “this is a substantial endorsement of our strategy”.
Fronde has produced a 39% lift in revenue levels on top of last year’s growth of 37% and a 54% improvement in earnings before interest and tax for the full year 2012. Total revenue is up from $34.2m to $47.6m and EBIT is $2.0m, up from $1.3m.
The focus has been on driving value through tight execution of the strategy. The local business has experienced strong growth in professional services due to Fronde’s increasing customer relevance around services and products that improve efficiency and effectiveness. Customers have also appreciated the ability of Fronde to support the transformation of their business.
The performance of the Australian business has fallen well short of expectations at a profit level, despite a year on year lift in revenue from $1.5m to $3.6m. Costs associated with building an Australian presence exceeded the contribution margin made on goods sold, leading to a loss in this part of the business. Fronde is reviewing its strategy to ensure it is self-funding.
Leadership in cloud integration services continues to strengthen through partnerships with global players including Google, Salesforce and Microsoft. By developing the Google client base, delivery capability and Google relationship, Fronde was the number one Google re-seller in APAC for 2011. Fronde is also one of four finalists for the PwC Hi-Tech Company of the Year Award for 2012 which will be announced on Friday 11th May.
The fully imputed dividend of 4 cents per share will be paid on the 29th June, 2012 to shareholders on the register at the close of business on the 1st June, 2012. The annual general meeting will be held at 12 noon on Thursday 26th July, 2012 at Fronde’s Wellington office.
9 May 2012