Strathmore's IT investments turn loss into $2.7m gain

Internet and technology investment company Strathmore made a $2.7 million profit after tax for the year to July 31.

In the previous year, it lost $2 million.

"The result was particularly pleasing given the early stage in the development of Strathmore's investments," the executive chairman, Phil Norman, told the Stock Exchange.

"Strathmore has made nine investments since September last year, all of which are at different steps in their maturity to globally scalable IT businesses.

"At this stage our venture capital business is still predominantly in an investment phase, which would typically be profit-neutral or lossmaking. We are therefore especially pleased to be reporting a $2.7 million profit in our first report to shareholders."

Profit was driven by the trading performance of CommSoft Group, the partial sale of Strathmore's investment in CommSoft and the sale of Wellington Drive Technologies.

Strathmore's total equity grew from $3.5 million to $33.2 million, the company's chief financial officer, Peter Saunders, said.

"We raised $16 million during the year, returned $12.5 million by way of the share buyback and still have a $33 million company at the end of the year," Mr Saunders said.

After completion of the buyback, half of that $33 million value was represented by Strathmore's most mature investment, a 16 per cent holding in CommSoft.

"This investment had been acquired at a coast of $2.9 million."

Earnings per share amounted to 2c, compared with a loss of 9c a share in the previous year.

Net asset per share was 16c.

- NZPA