Fronde operating surplus enables investments

Parent company invests $2 million in Fronde Anywhere

IT services company Fronde has announced an operating surplus, which enabled it to invest in development of Fronde Anywhere, its mobile banking and security subsidiary. This reduced the year-end financial result, but the company is able to pay its shareholders a dividend of 4 cents per share, it says.

Revenue in the financial year ending 31 March 2007 was $33.66 million, compared to $32.97 million last year. The first half saw strong revenues from overseas, while the second half saw a significant lift in billings to New Zealand clients, according to Fronde.

A strong improvement in the profitability of the New Zealand operations increased the parent company’s operating surplus to $1.69 million, from $280,000 last year, says the company. This, together with increased borrowings, enabled the $2 million investment in Fronde Anywhere. The parent company still recorded a $200,000 after-tax profit.

During the year, Fronde also moved to full ownership of its British subsidiary, by acquiring the 33% stake held by SQS UK (formerly Cresta), following Cresta’s acquisition by SQS.

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