Jade loss from Wynyard failure revealed
Christchurch-based Jade Software wrote off $912,000 from the failure of spin off company Wynyard Group which was spit up and sold to various owners earlier this year.
Jade's revenue growth for the year ending December 2016 was up 24 per cent to $37 million but the Wynyard effect and a stronger New Zealand currency resulted in a net loss before financing expenses and tax of $600,000.
This was an improvement on the 2015 loss of $3.2m.
Managing director David Lindsay said Jade's success was testament to the resilience of the business and it was a strong result.
Long standing Jade chairwoman and former MP Ruth Richardson stood down during the year, after selling her shareholding the previous year.
She has been replaced by Sue Suckling. Another new board appointee was Julia Raue.
Jade had to replace key revenue streams in the aftermath of the Wynyard collapse in October 2016, Lindsay said.
Wynyard was launched as a separate business from Jade in 2012 and was involved in security software.
One of Jade's main businesses currently is supplying terminal operating systems to mixed cargo ports around the world and 25 new marine terminals hubs were licensed in 2016 bringing the total number to 108.
"We continue to see strong demand for this product globally and importantly, are achieving increasingly consistent sales."
But Lindsay said continued re-investment in new product development and market share growth will mean that the logistics division will not be profitable in the medium term.
"However further critical mass in the markets we operate in will deliver long-term profitability."
Jade's digital solutions activities saw increased revenue of 13 per cent with more than 65 per cent of forward revenue contracted.
The solutions division is expected to be profitable in 2017.
In October 2016 Jade negotiated the return of its original development and support team, which since 2013 had been outsourced to JADETM Technology.
"This investment has already commenced and will continue on through 2017 to ensure that the product continues to remain relevant in an ever changing and innovative environment."
Revenue in the technologies arm increased 8 per cent and it delivered a profit.
During the year the company also enjoyed government grants of $406,928 ($542,767 in 2015), and research and development grants of $203,720 ($64,002) for export market development.
Jade is owned 56 per cent by UK company Skipton Investments, and 26 per cent by USA Health Investors with the balance held in smaller parcels by a range of investors including founder Sir Gil Simpson who owns 2.2 per cent of the shares.