Diligent shares rise on profit surge

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7.350

-0.05

-0.68%

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Shares in NZX-listed cloud software firm Diligent are on the rise again after the company reported a 145 per cent jump in third-quarter revenues to US$11.8 million (NZ$14.3m).

The company said it had at same time upped its gross profit margin to a record 78 per cent.

Revenues for the nine months to the end of September shot up from $11.5m to $30.2m. It also posted an $8m profit for the nine-month period, turning around a $119,000 loss.

Diligent operates in a niche market, providing software that lets company directors securely access board documents online rather than on paper.

After an extremely shaky start on the NZX following its 2007 listing, when its shares sank from their $1 listing price to a low of 7 cents, Diligent has become a stockmarket darling. Its shares were up 5 cents at $3.82 in early trading today after opening at $3.78.

The company signalled in August that it might start paying dividends by the end of the year.

It said in today's update that it had begun to work with financial advisers in the US to consider its dividend policy and "related capital market matters"

- © Fairfax NZ News