GPS firm tips revenue to triple

IkeGPS chief executive Glenn Milnes with the company's all-in-one hand-held surveying instrument, combining a GPS receiver, camera, range-finder and compass. ikeGPS shares began trading on the NZX today.

Technology company ikeGPS, which will list on the NZX next month, has forecast its revenue to more than triple in the current financial year, according to offer documents released last night.

But the Wellington-based firm - which has developed a device used by organisations including electricity utilities to photograph, measure and GPS-locate objects such as telegraph poles - is also expecting ongoing losses as it expands its business in the United States.

Ike has allocated the full $25 million of new capital sought in its initial public offer following a bookbuild with institutions and retail brokers. The cash will be used to fund its push into the United States.

Ike made a $2.3 million loss in the 12 months to March 31 this year on revenue of $1.9 million, according to the prospectus.

The company has forecast revenue to increase to $6.4 million in the year to March 2015, with losses widening to $5.3 million.

A loss of $5.8 million from revenue of $14.3 million is expected the following year, according to the prospectus.

The company shipped 156 of its devices, which cost more than $10,000 each, in its last financial year.

Chief executive Glenn Milnes said the company was not releasing "specific dates and timeframes" on when it expected to turn a profit.

"Getting to profitability is important to us."

The $1.10 offer price values the company at about $55.1 million.

Read the ikeGPS prospectus here: