Menu
​Fronde returns to profit, but NZ challenges remain

​Fronde returns to profit, but NZ challenges remain

“Fronde is working on increasing recurring revenue in the large and mid-tier enterprise markets..."

Fronde has returned to profit - releasing its interim financial results for the six months ended 30 September - but challenges remain for the technology company.

Financials released this week reports profit before tax of $1,211k, a $2,336k turn around on the prior comparable period.

In addition, revenue remained flat period-on-period from 30 Sept 2015 ($31,583k) to 30 Sept 2014 ($31,589k), with the company reporting $897k period-on-period improvement in gross profit.

Fronde Chairman Jon Mayson - fresh from appointing new CEO Anthony Belsham - says the action taken by the company to improve its financial performance has “paid off”.

“Fronde has turned its financial performance around during a period of challenging trading conditions, improving profit before tax by $2,336k compared to the same period last year,” he says.

“This was achieved through strong cost control, better matching of capacity to workflow, and a 12 per cent improvement in operating margins.

“We’ve also made changes internally in terms of staffing and business focus to be able to effectively meet the changing needs of the market and our customers who are more and more looking to us for cloud and digital solutions.

“We are forecasting a more challenging second half, and will continue to keep a close eye on costs and take action to ensure Fronde remains profitable over the balance of the year.”

While New Zealand revenue contracted, Mayson says Fronde Australia grew by six percent for the six month period.

Growth continues in Australia where the business will concentrate efforts on its Google and NetSuite practice areas, adds Fronde Chief Financial Officer, Emma Watson.

“Consistency of operating margins is improving as Fronde earns a greater proportion of recurring revenue, with the business positioned to deliver a net profit for the full year,” Watson adds.

“In New Zealand many of the company’s business units are performing strongly.

“Fronde is working on increasing recurring revenue in the large and mid-tier enterprise markets, as changing Government procurement practices and investment priorities have impacted the number and profitability of opportunities for custom software development.”

Looking ahead, Watson says Fronde is looking for growth opportunities in the Auckland and Wellington enterprise markets and has been “successful in winning platform development work for large established clients”, with a strong pipeline for Salesforce, Google and Amazon sales and implementations.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags CloudFronde

Slideshows

IN PICTURES: Ingram Micro Innovation hits Auckland with Hewlett Packard Enterprise

IN PICTURES: Ingram Micro Innovation hits Auckland with Hewlett Packard Enterprise

Ingram Micro completed its nationwide roadshow in Auckland last month, kicking off its Innovation Hour series with Hewlett Packard Enterprise. Uncovering the latest in storage, networking and servers, the event outlined key market trends for resellers in 2016 and beyond.

IN PICTURES: Ingram Micro Innovation hits Auckland with Hewlett Packard Enterprise
IN PICTURES: FireEye celebrates channel at 2016 Partner Conference

IN PICTURES: FireEye celebrates channel at 2016 Partner Conference

FireEye welcomed 143 channel partners and distributors to FireEye's 2016 annual Partner Conference, FireEye A/NZ Momentum - held at Establishment in Sydney. Delegates heard from senior trans-Tasman channel leaders, marketing and the product divisions in the morning, with FireEye customers, incident responders and threat intelligence analysts sharing knowledge during the afternoon.

IN PICTURES: FireEye celebrates channel at 2016 Partner Conference
​IN PICTURES: Disruption in the data centre - Can the Kiwi channel capitalise?​

​IN PICTURES: Disruption in the data centre - Can the Kiwi channel capitalise?​

With New Zealand businesses now open to innovation, the industry sits on the cusp of significant disruption in the data centre. Driven by software-defined networking, the future of the data centre is fast becoming reality, as the channel seeks to keep up, keep innovating and keep growing. APC by Schneider Electric, Lenovo and key partners outlined how the channel can capitalise at The Grill restaurant in Auckland.

​IN PICTURES: Disruption in the data centre - Can the Kiwi channel capitalise?​
Show Comments