GeoOp widens annual loss, foregoes dividends, as it chases growth
GeoOp [NZX: GEO], whose software allows mobile businesses such as builders to manage their workforce, widened its annual loss as it pressed on with investing for growth.
The Auckland-based company posted a $4.6 million loss in the year ended March 31, including $600,000 of costs relating to its 2013 capital raising and listing. That compares with an annual loss of $312,000 in the 2013 year. The company's loss per share narrowed to 23.9 cents a share from 294 cents a share the year earlier as it increased the number of shares on issue.
GeoOp, which listed on the New Zealand stock exchange NZAX market for smaller companies in October, said revenue surged almost fourfold to $488,000 in the past year as it increased paying users to 8,006 from 2,300, added new product features for the services and trades sectors and appointed key executives in sales and technology. The number of paying users increased further to 9,047 at May 31, it said.
"In the seven months since GeoOp listed, the company has shown pleasing progress in the key areas of customer acquisition, product development and has significantly added its capability in its senior leadership team," chairman Mark Weldon said. "The board confidently expects momentum in customer acquisition to accelerate over the next 12 months."
GeoOp has $7.7 million of cash and investments to fund its growth, up from $80,000 a year earlier. It didn't pay a dividend.
The company has customers in 25 countries, with 58 percent in Australia, 19 percent in New Zealand and 11 percent in North America. It expects to benefit from the increasing use of smart mobile devices which will enable companies to better manage their mobile workforces. Market research firm IDC expects there will be 1.3 billion mobile workers worldwide by 2015, one third of the global workforce, the company said.
GeoOp today named Jamie West to head its product, technology and delivery teams after appointing Rhonda Robati as head of sales in April.
The company plans to simplify its pricing structure from July so businesses pay a single monthly licence fee, rather than paying based on the number of users in the field. It also plans to change its balance date to June 30 in the current financial year, meaning its next interim results will be for a nine-month period to Dec. 31, 2014.
Shares in GeoOp last traded at $1.45, having shed 22 percent so far this year. The shares were sold in its private offering last year at $1 apiece.