GeoOp's shares gain as revenue beats forecast

GeoOp's shares closed up 3c yesterday at 31c, valuing the company at $15.3m. Photo / Richard Robinson

GeoOp's NZAX-listed shares jumped after the management app developer said annual revenue beat forecast.

Annual revenue rose to $4.58 million in the year ended June 30, ahead of the $4.54m projected in an independent adviser's report on the Auckland company's merger with Australian mobile sales app developer InterfaceIT.

Shareholders approved the deal in May, it completed on June 1, and GeoOp yesterday said integration was "significantly advanced" with a number of savings already starting to be realised.

GeoOp's shares closed up 3c yesterday at 31c, valuing the company at $15.3m.

"GEO's strategic focus remains on providing a suite of tools to manage mobile workforce productivity," the company said.

"The addition of a sales application, which helps distributed sales forces to optimise one-on-one, face-to-face conversations with potential customers, has added to the suite of products that GEO's customers use to make their businesses more efficient," it said.

GeoOp bought InterfaceIT for $9m in shares and convertible notes, giving the Australian company's owners about 32 per cent of the merged entity, rising to as much as 64 per cent if certain conditions are met in what independent adviser Simmons Corporate Finance called a worst-case scenario for the GeoOp shareholders in its report on the deal.

The independent adviser valued InterfaceIT at between $6.1m and $8.5m and added an additional $2.3m to $4m of benefits arising from a merger.

The company affirmed plans to raise more capital to fund product extensions and expand the business.