Enprise narrows first half loss as it reduced costs

Enprise Group narrowed its first-half loss

Enprise Group [NZX: ENS], the accounting software reseller which debuted on the NZAX yesterday, narrowed its first-half loss as its Australian unit turned to a profit and it reduced costs.

The Auckland-based company's loss narrowed to $79,000 in the six months ended Sept. 30, from $110,000 in the same period a year earlier, it said. Sales slipped 3.1 percent to $3.4 million, while cost of sales fell 8.1 percent to $1.2 million.

Enprise is made up of three software-based businesses, Enprise Solutions, which is a reseller and servicer of MYOB EXO accounting software, Enprise Software, which develops software for SAP Business One accounting software, and Datagate Innovation, a developer of cloud portal software for telecommunications and utility companies which it acquired earlier this year for $120,000.

The company debuted on the NZAX via a compliance listing, meaning it raised no cash. The company's stock rose 88 percent to 60 cents in its first trade yesterday and closed at 55 cents. It hasn't traded so far today.

In New Zealand, the company widened its net loss to $149,000 from $16,000 while sales rose 16 percent to $2.2 million. Its Australian segment turned to a profit of $70,000 from a loss of $94,000 in the year earlier period, while sales slipped 27 percent to $1 million. Sales declined in its smaller markets of Asia, North America, Europe, Middle East and Africa.

At balance date it held cash and cash equivalents worth $603,000, from $665,000 at March 31.

It didn't pay an interim dividend.

(BusinessDesk)