Business telecommunications company Zintel Group is considering moving from the NZAX alternative board to the main NZX board, as the business grows.Zintel chairman Nick Gordon told the company's annual meeting today that such a move should, among other be
Business telecommunications company Zintel Group is considering moving from the NZAX alternative board to the main NZX board, as the business grows.
Zintel chairman Nick Gordon told the company's annual meeting today that such a move should, among other benefits, improve exposure and share liquidity.
The company, which had revenue of $49.5 million in its latest financial year, had started on a major growth phase, Mr Gordon said.
Last October Zintel started selling Hypercom terminals for eftpos and credit card in retail stores, through new subsidiary Zintel Payments.
While losses were incurred during the establishment period to the end of March, Zintel Payments had contributed a modest profit in the new financial year so far, and it was expected that would increase significantly in the next 12 months, Mr Gordon said.
There were 57,000 terminals in retail stores that needed to be replaced by June next year to meet compulsory banking security requirements, with Zintel standing to gain a sizeable share.
Also in October, the group bought the business of Cogent Communications. That more than doubled Zintel's staff numbers in this country and took total staff numbers from 120 to 230.
The group was now recruiting executive positions to strengthen the management team.
Trading conditions in the industry were tough and highly competitive, resulting in lower margins, Mr Gordon said.
"External factors aside, we now have a considerably increased size of business in terms of headcount and revenue, and we anticipate reducing expenses over time through operational efficiency and lower overheads, resulting in increasing profitability in this and coming years.
"It is however too early for us to provide any kind of accurate forecast as to profitability during a period of so much change."
Zintel shares last traded at 30c, having ranged between 26c and 40c in the past year.
