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.