Fronde taps sweet spot to double profit

TOM PULLAR-STRECKER
Last updated 15:05 23/05/2013

Relevant offers

Industries

Cargo, container increase drives Port Nelson $18 million operating profit NZ renters are shut out of the housing market - Labour 'Bring it on': The Warehouse boss Nick Grayston says to rivals Yahoo nightmare continues for Spark customers Coca-Cola Amatil's new juice factory produces 800,000 bottles a day Dick Smith's demise, strong economy boosts The Warehouse profit A tale of two fridges - the digital divide reaches the kitchen Why building new isn't always the cheaper option Limitless watches clock up crowdfunding cash State houses among star green building projects

Wellington technology company Fronde more than doubled its profit to $2.7 million, while increasing revenues by 26 per cent to $59.9 million in the year to March.

The company has tapped into a sweet spot in the information technology services market, helping businesses switch to cloud-based software and hosting services.

Fronde's shares are traded on the Unlisted over-the-counter market, an alternative to the NZX's junior board. It declared a 4 cent dividend.

Chief executive Ian Clarke said Fronde had "rounded out" its cloud computing offerings by forming partnerships with Amazon and NetSuite, alongside its existing partnerships with 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," he said.

Fronde, which employs 330 staff, advised shareholders not to sell their shares in April after directors agreed to a request to provide confidential information about the firm to an unnamed party.

The company downplayed suggestions of a takeover bid at the time but said the information request might result in "a potential transaction" which could affect the value of its shares.

A possible explanation may have been that an existing shareholder wanted to  increase their stake in the firm.

Clarke said that now Fronde had released its annual result, all shareholders had the same information and the "don't sell recommendation" no longer applied.

"At the time, because we knew we had a good result coming that was quite out of context with previous results, we wanted to make sure shareholders knew another party had better information than they did."

He was unable to say whether the potential transaction that sparked the original information request might still go ahead.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content