Wynyard shares jump as Thai Customs contract feeds growth pipeline
Shares in Wynyard Group [NZX: WYN] jumped 8.6 percent after the intelligence software developer grabbed its third new client in as many weeks, and building expectations the firm will deliver on its growth aspirations.
The Auckland-based company signed up the Thai Customs Department today, where Wynyard's software will be used in preventing drug trafficking at the South East Asian nation's northern border. The deal adds to Wynyard's growing customer list, with recent additions including Manayer Marketing Management and TransCash Corp, and Galadari Brothers in the United Arab Emirates.
"They continue to announce a lot of deals, the Galadari Brothers and the UAE deal and Thai Customs today, and it's our understanding they have a healthy pipeline of contracts to be signed," said Mark Warminger, a portfolio manager at Milford Asset Management, which owns about 14 percent of Wynyard. "We like it a lot. In our long-term view we see a lot of value."
The shares climbed 9 cents to $1.14 today, having closed at a low yesterday since being spun out of Jade Software in July float at $1.15 a share. The stock is rated a 'hold' by two analyst recommendations compiled by Reuters, with a median target price of $1.40.
Milford's Warminger said Wynyard been caught up in the sell-off of various high-risk companies in recent weeks.
"A lot of the IPOs this year haven't gone that well, and retail sold off on the back of it," Warminger said.
Last month Wynyard affirmed earlier guidance that it was on track to meet its 2013 sales forecast of $21.5 million, while bringing forward recruitment of new sales and services staff to manage next year's growth pipeline, adding between $1 million and $1.5 million to the forecast operating expenditure of $25 million for the 2013 calendar year.