Fronde half year profit improves by 48%
Wellington – 29 November, 2017 – Fronde, a leading Australasian business consultancy and digital technologies company, today announced its half-year financial results for FY18, delivering a large profit increase of 48%.
Key outtakes of the results:
- Profit before tax for the half year improved by 48% ($1.09m compared with $0.74m for the prior year).
- Overall, revenue was in line with last year. However, the mix continues to improve, as the business focuses on growing profitable areas and reducing and eliminating areas with low profitability.
- As a percentage of income, profit before tax increased from 2.8% in the prior year to 4.1% this year.
- Equity increased to $5.99m, with retained earnings now positive for the first time in three years.
- As well as significantly improving profit, Fronde have been able to increase investment in developing and managing intellectual property to build a differentiated market position, and also to continue growth in Australia.
- Cash remains strongly positive, with no use of overdraft facilities.
The Hon. David Bartlett, Fronde Chair, said, “As highlighted in the past few years, revenue and profitability from traditional areas of our business has been under pressure. Pleasingly we have seen the growth in recurring revenues from licenses and premium consulting services fully compensate for the reduction in revenues from building customised bespoke software.
As part of our ongoing focus on improving profitability and building our platform for future growth, we are accelerating our investment in the development of intellectual property and sales and marketing capability. We are also leveraging areas of excellence, creating efficiency and improving delivery effectiveness by managing our business as one unit, rather than our previous country specific approach.”
Anthony Belsham, Fronde CEO, said, “As previously signalled, we expect the pressure of current market dynamics to continue, particularly in the traditional custom software development areas of our business. However, our investment in building a differentiated position in both New Zealand and Australia is gaining traction, particularly as we pivot towards more high value consultancy services that sets businesses up for success. We now have an exciting and strong base to build on over the next few years.”
Fronde’s focus for the coming year remains consistent, as they continue focus on improving profitability, balancing this carefully with enabling further investment in growth segments. Key areas include:
- Continuing to build and refine Fronde’s differentiated market position through unique intellectual property, and leveraging this in both the Australian and New Zealand markets.
- Investing in sales and marketing capacity and capability.
- Optimising service capacity to match demand, and optimising internal indirect costs.
For further information, please contact:
Kirsty Tikao, Fronde, firstname.lastname@example.org, Ph: +64 21 728 282
The world is changing faster than ever in history, and our customers are at the forefront of accelerating this change. We challenge, inspire, and enable our customers to align their business & digital strategies, achieving much better and faster business outcomes with their existing, new, and emerging technologies, and allowing them to continuously improve. As a result, our customers create & deliver new and improved customer & employee experiences, operational effectiveness & efficiency, better & faster decision making, and innovative products and services. Not only do these deliver exceptional business outcomes, but they help accelerate the change in the world we live in faster than ever in history. Fronde - we enable our customers to accelerate the world we live in.
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.
Fronde is an Australasian company with offices in Wellington (HQ), Auckland, Sydney, Melbourne, and Manila. Fronde has been delivering successful business outcomes for our clients 25 years.