MEDIA RELEASE FOR IMMEDIATE RELEASE
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.