Wynyard loss widens

Wynyard Group chief executive Craig Richardson

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Intelligence software developer, Wynyard Group [NZX: WYN] widened its first-half loss while boosting sales 39%. 

The company anticipates faster revenue growth from the second half as it rolls out a new product.

The Auckland-based company posted a net loss of $17.6 million, or 14c per share, in the six months ended June 30, from $10.2 million, or 9c, a year earlier.

Revenue climbed to $14 million from $10.1 million a year earlier, with growth in Wynyard's New Zealand and UK segments offsetting a decline in its Australian region. Operating expenses rose 79% to $11.5 million

The company plans to launch its new cyber threat analytics software in the second half of the year, which it says has a shorter sales cycle and should "deliver significant recurring software revenue" in 2016.

"FY15 revenue outlook is unchanged at this stage and new solutions will begin to smooth future period revenue volatility," Wynyard says. "Based on the current sales pipeline, Wynyard continues to expect FY15 revenue in the range of $40-45 million."

The company is forgoing short-term profit as it chases global market share. It raised $42.6 million in a placement and share purchase plan in June and July. This will fund an expanded workforce and operations, and research and development. 

The company had cash and equivalents of $41.1 million as at June 30, and raised a further $2.6 million through the share purchase plan after the balance date.

The shares last traded at $1.31, and have dropped 33% this year. The shares were sold at $1.15 apiece in an initial public offering in July 2013, raising $65 million.

"While the placement was well-supported, the board believes the current share price, driven by the thinly traded retail market, is not reflective of the company's value considering its market opportunity and relative to pre-IPO and listed peers in other tech savvy markets," the company says.

Wynyard expects to complete a secondary listing on the ASX in the fourth quarter of this year, which it has previously said would allow more Australian and foreign investors to buy stock.


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