INDEPENDENT NEWS

Finzsoft shares soar to record

Published: Thu 2 Oct 2014 11:04 AM
Finzsoft shares soar to record after signalling fourfold earnings boost
By Paul McBeth
Oct. 2 (BusinessDesk) - Shares of Finzsoft Solutions soared to a record a day after the financial software developer said annual earnings would likely grow fourfold after the firm signed up Australia's St George Bank as a customer.
The stock jumped 44 percent to a record $2.50, adding to yesterday's 24 percent gain, though only 5,400 shares of the 8.3 million on issue changed hands today, and 10,500 were traded yesterday.
Finzsoft managing director Andrew Holliday, who owns about 68 percent of the company, said yesterday the St George work order to integrate the auto and equipment finance businesses of Capital Finance Australia would underpin "forecast earnings at four times last year's profit result" of $755,000 in the 12 months ended March 31. That forecast didn't include expected gains from the $1.9 million cash-and-scrip acquisition of Sush Global Solutions, which develops mobile apps.
Before yesterday's announcement, the stock traded at $1.40, valuing the company at $11.6 million, a level chairman Brent Impey said the board believes didn't reflect the "intrinsic value of the company." At today's share price, Finzsoft is valued at $20.3 million.
The company has also embarked on a strategic review of its capital and ownership structure, hiring PwC to assist with the process, it said in yesterday's statement.
Impey said the review will consider initiatives to improve the capital structure and share trading liquidity "to more appropriately reflect current and future opportunities, the company's investment in R over 25 years and the value of its IP (intellectual property)."
The review had the backing of its majority shareholder, and is expected to be completed before the end of the year, Impey said.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Cigna Admits Making False And Misleading Representations
By: Financial Markets Authority
Retail Card Spending Down 0.2 Percent In July
By: Statistics New Zealand
Auckland Rental Prices Inch Up Again, But Upward Trend Could Ease In Coming Months
By: Barfoot and Thompson
ASB Full Year Results: Building Resilience Today And For Our Future
By: ASB Bank
Commerce Commission Issues Draft Determination On News Publishers’ Association’s Collective Bargaining Application
By: Commerce Commission
Retirees Facing Pressure From Higher Cost Of Living And Increasing Debt In Retirement
By: Heartland Bank
View as: DESKTOP | MOBILE © Scoop Media