Diligent releases restated accounts

NZX-listed cloud software firm Diligent has finally been able to provide clarity on its recent financial performance.

Net profit fell 40 per cent to US$6.4 million ($7.6 million) in 2013, but operating income rose 35 per cent to US$10.3m.

The company was obliged to restate its 2012 accounts because of accounting compliance issues.

Revenues in 2013 rose 66 per cent over its restated result for 2012, to US$64.8m. The company paid its first dividend this year, at 1.1 cents per share.

Diligent shares were trading up 7.4 per cent at $5.05 in mid-afternoon trading shortly after the announcement.

The company has yet to restate its historical financial results for the years 2007 through to 2011.

Diligent develops software that lets directors receive and manage boardroom documents online.

Chief executive Alex Sodi said it gained 642 net new customers last year, ending the year with 2450 clients.

Its net profit was reduced by US$7.8m because of "one-off" costs associated with its re-auditing, the re-statement of its accounts and remuneration issues. The company admitted early last year it had awarded too many stock options to Sodi and another executive.

Sodi said he expected Diligent would also incur some additional costs relating to its audits and the re-stating of its accounts in the first quarter of this year.

Diligent's cash-in-hand increased to US$56m, from US$22.7m at the end of 2012. 

Fairfax Media