Finzsoft shares soar 41%

Finzsoft's Australian segment lifted adjusted earnings before interest, tax, depreciation and amortisation (ebitda) to $4.2 million in the six-month period from $880,000 a year earlier. Photo / File

Shares of Finzsoft Solutions jumped to a record after the financial software developer reported a profitable first half on Friday, and said its board was considering paying an interim dividend for the first time in four years.

The stock soared 41 per cent to close at a record $3.98 yesterday , valuing the company at $33.2 million.

Finzsoft reported a net profit of $2.02 million in the six months ended September 30, against a loss of $63,000 a year earlier, the Auckland-based firm said. Revenue rose 87 per cent to $7.9 million, helped by Australian market growth.

Managing director Andrew Halliday, who owns about 68 per cent of the company, said Finzsoft now expected to materially exceed previous earnings guidance for a fourfold rise on last year's $755,000 profit, and that based on the forecast and strong result the board expected to pay an interim dividend. Directors will meet about it early this month.

"As signalled by the board, FY13 and FY14 have been turnaround years for Finzsoft with the new majority shareholder, board and management refocusing the business and securing the company's largest work orders to date," he said.

"Sales efforts have delivered a strong order book ... and we are on track to deliver a third year of record growth."

In October Finzsoft signed its biggest contract with St George Bank to integrate the vehicle and equipment finance businesses of Capital Finance Australia, which it said would underpin the previous profit guidance.

Australia now accounts for about 59 per cent of the firm's revenue.

Finzsoft's Australian segment lifted adjusted earnings before interest, tax, depreciation and amortisation (ebitda) to $4.2 million in the six-month period from $880,000 a year earlier, on a 306 per cent rise in revenue to $4.6 million.

The NZ segment widened its ebitda loss to $744,000 in the period from $100,000 a year earlier, on a 6.1 per cent revenue rise to $3.2 million.