Strong business performance reaps rewards

Leading technology services business, Fronde Systems Group Ltd, has announced double digit revenue growth and an improved operating surplus. “This is a substantial endorsement of our strategy” says Board Chairman, Wayne Norrie.

Fronde has produced a 37% lift in revenue levels from the previous year and a turnaround in the profit result for the full year 2011. Total revenue is up from $24.8m to $34.2m and profit after tax is $0.8m from a loss in the previous financial year of $1.8m.

The Group’s cash position has improved, finishing the year with a cash balance of $1.061m. This improvement in cash is as a result of attention to debtors and tight management of capital investment.

The focus has been on a return to profitability through tight execution of the strategy, as well as revenue growth and improving the working capital position of the company. Management has focused on a number of business areas to drive performance. These were building an annuity revenue stream with Google’s Enterprise solutions in NZ and Australia, winning significant new recurring business, and improving performance of the Auckland branch.

The fully imputed dividend of 4 cents per share will be paid on the 30th June, 2011 to shareholders on the register at the close of business on the 1st June, 2011. The annual general meeting will be held at 12 noon on Thursday 28th July, 2011 at Fronde’s Wellington office.

1 June 2011