Christchurch-based Jade Software reported an after-tax profit of $1.16 million for the half-year to June 09 compared to $876,000 for the corresponding period last year, but it expects the second half of this year to not treat it as kindly.

The privately-held company reported that operating revenue grew 3.2% to $23.9 million and net profit before tax increased 29.8% compared with the same period in 2008, although this was largely ascribed to underperforming projects last year.

“Despite a good performance this half year, Jade is not immune to the adverse global conditions and we expect that the result for the full year will be down on 2008. That said, the company is well positioned to weather the economic downturn and to take advantage of the recovery in 2010”, Australian ex-pat chief executive Craig Richardson said.

He joined Jade Software in March after previously holding the position of CFO for Coca-Cola Amatil in New Zealand and Fiji.

Chief financial officer David Lindsay said profit growth for the first half year was attributed largely to operational improvements and careful management of costs.

“In 2008, 20% of Jade’s revenue came from logistics and 25% from the financial services sector. With our European logistics customers reporting up to a 60% reduction in cargo movements and the unprecedented conditions in banking, finance and insurance, we are expecting this to be reflected in our year end result,” Mr Lindsay said.

Net cash flow has increased considerably from last year, standing at $4.94 million, up from $2.81 million, while the company’s total equity now stands at $34.3 million, compared to $31.2 million for the same period last year.

Jade Software sells computer software, systems development and information utility, with offices in the United Kingdom, United States, Canada, Australia and New Zealand