Serko, the online travel booking business, widened its first-half loss in line with its May prospectus as it hired more staff to chase sales growth.
The Auckland-based company increased its loss to $3.6 million in the six months ended Sept. 30, from a loss of $347,146 a year earlier, it said in a statement. Sales rose 50 percent to $4.7 million. Expenses increased 127 percent to $8.9 million, fuelled by a 129 percent increase in remuneration and benefits to $5.3 million as it increased its payroll from 65 to 118.
In June, Serko raised $17 million in new capital selling 15.5 million new shares at $1.10 a piece, via an initial public offering to fund its growth ambitions and repay debt. Founders Darrin Grafton and Bob Shaw sold a further $5 million worth of shares into the offer, retaining about a 20 percent stake and have agreed not to sell any more shares until two days after Serko announces its 2016 annual result.
The software-as-a-service company has forecast losses for its 18-month forecast horizon, but chairman Simon Botherway told investors in May the company doesn't anticipate raising more funds with Serko expected to be operationally cash-flow positive by the end of 2016. According to its prospectus, Serko expects a net loss of $6.6 million in the 12 months ending March 31 next year, from a loss of $1.7 million in 2014, and a first-half loss of $2.5 million the following year. Revenue is seen climbing 53 percent to $11 million in 2015, with sales of $8.3 million in the six months ending Sept. 30, 2015.
"Serko is currently on-track to achieve the financial forecast for the 12 months to March 2015 included in the prospective financial information contained in the prospectus," chief executive Grafton said. "At a macro level, the global market for travel technology remains strong and is experiencing a level of consolidation. The acquisition of our main competitor Concur by SAP in October 2014 is a clear demonstration of the value inherent in the market.
