Float to give firm more teeth

By GEOFF SENESCALL

An Auckland dental software company with a track record of profitability is set to make an appearance on the sharemarket before Christmas.

It is understood that Software of Excellence International wants to raise $5 million through the issue of shares in early December.

This would give it a market capitalisation of $21 million.

Sandy Ellis, of Ellis Capital, who is said to be handling the float, declined to comment.

Software of Excellence was established about 10 years ago. Over the past five years, its turnover has risen from $2 million to $9 million.

It has produced profits in three of those years, but a writeoff of its software this year created a loss.

Software of Excellence's dental software can be used to control everything from x-rays to billing.

It is used by 40 per cent of the dental practitioners in New Zealand.

The company also has operations in Britain and Australia.

Part of the $5 million it wants to raise will be used to buy a British competitor.

Once that deal is completed, it is believed Software of Excellence will be the largest seller of software to dentists in Britain. The Boots pharmaceutical chain is among its clients.

Software of Excellence is also expanding its operation into the institutional market.

It has formed links with the Otago dental school as well as state health authorities in Australia.