Telecom offshoot tops growth index

A Telecom subsidiary outgrew other Kiwi firms to be ranked No 1 in this year's Deloitte Fast 50 index, the results of which were announced last night.

The index ranks New Zealand's top 50 companies according to their revenue growth over the past three years.

Telecom Rentals, which provides finance for telecommunications and information technology equipment, achieved 1897 per cent growth between 2008 and 2010 to take the top spot on the list.

Matt McKendry, national leader of the Fast 50 programme, said the Wellington-based subsidiary benefited from being established four years ago when many other finance companies were facing difficulties.

"[Telecom Rentals] found a gap in the market, really drilled on it and spent time getting their processes right," he said.

Asked if being established so recently had helped the firm to achieve such high growth, he said: "There's no doubt about that."

Next on the index was online retailer Nature Shop, with 1106 per cent growth.

The Mt Maunganui-based company sells natural clothing products - such as those made by Kiwi outdoor brand Icebreaker - internationally via the internet.

McKendry said it was very hard for firms to sustain ultra-high growth rates over a long period. But one company that had managed was Auckland-based digital touch-screen maker Next Window, ranked No 5 in the 2010 list after registering growth of 905 per cent.

It is the fifth consecutive year Next Window has been included in the index. Other companies making the Fast 50 included South Island dairy processor Synlait, ranked at 12 with 468 per cent growth, and Wellington's Mojo Coffee Cartel, at No 37 after growing by 227 per cent.

Companies required growth of more than 160 per cent to make the 2010 index, up from last year's benchmark of 145 per cent.

McKendry said firms made the Fast 50 because they got basic business principles right. "They identify a niche in the market place and really, really focus on it."

Despite companies needing to submit an entry to have a chance at being included in the index, he said it was a "good barometer" of what was going on in New Zealand business.

To enter, firms must be registered in New Zealand, have been in business for a minimum of three years and have had an operating revenue of at least $300,000 in the 2007/08 financial year.