Fronde announces half year profit

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Fronde announces half year profit

Wellington – 21 December, 2016 – Fronde, the leading Australasian digital transformation company, today announced its half-year financial results for FY17, with the focus on transformation and profitability delivering sustained and improving margins.

Key outtakes of the results:

Profit before tax of $736k, a slight reduction of $42k compared to last year (note 1)

Gross margin increased from 27 per cent to 32 per cent due to improvements in capacity management and a shift to higher-margin revenue streams

The business invested significantly in growth initiatives in the Australian market

Ongoing success in reducing general overhead costs by 4%

Anthony Belsham, CEO, Fronde, said, “Fronde is currently undergoing substantial change to become significantly more customer focussed while improving profitability. As a result some parts of the business are growing while we reduce our focus on unprofitable areas. Our mix of recurring services, licences and project services is increasingly less reliant on one-off large projects, and despite the reduction in revenue of 16 per cent versus the same period last year, the company generated an increase in gross profit.

“Looking forward, Fronde will continue to focus on profitability and building a strong base for future growth. We will continue to work to establish our differentiated market position, optimise operations, increase our share of business with key customers, and increase recurring revenue streams.

“Our cash and cash equivalents balances continue to increase, and after adjusting for foreign currency translation reserve and share-based payment reserve, total equity increased by $980k.

Anthony Belsham said, “We are pleased with the progress we are making. We are expanding our focus in Australia, and have the strategies and skilled personnel in place to support ongoing profitability and growth in the ANZ region.”

note 1: Intercompany foreign exchange gains arising from monetary items that form part of the net investment in Fronde Australia Pty Ltd have been reclassified in this half year result. The previous periods have been restated for comparative purposes. See page 9 in the half year report for more details.

-ENDS

About Fronde In the modern world, speed is the new currency, and ensuring customer success is at the centre of what we do. Our mission is to help you accelerate your organisation to achieve outstanding outcomes. We do this by helping customers align their business strategies, existing digital investments, and the appropriate adoption of rapidly accelerating digital technologies. Unlike many of our competitors that specialise in just one or two technologies and deliver discrete solutions, we will help you achieve your goals faster and more effectively.

Our unique intellectual property & pragmatic end-to-end capability will help align, leverage, develop, and continuously improve your digital ecosystem (e.g. business / digital strategy, development, integration, deep technical capability, managed services, etc).

Fronde has received recent accolades from some of the giants in computing, including being awarded ‘Google Apps APAC Partner of the Year’, and ‘NetSuite APJ Solution Provider of the Year’ two years in a row.

Successes in software development, IT managed services, plus other strategic partnerships with Amazon Web Services and Salesforce.com have combined to see Fronde regularly feature in the TIN100 and CRN Fast50.

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