Jade Software back in the black after split from ports software business
- 06 June, 2018 06:00
Charlotte Walshe - CEO, Jade Software
Christchurch-based Jade Software Corporation returned to profit in 2017 after splitting in two mid year and expects that momentum to continue.
The business achieved an underlying profit for the year ended 31 December of $6.2 million, with $3.5 million profit achieved from continuing operations, while carrying restructuring costs of $2.7 million.
Revenue increased from $24.9 million to $33.1 million while expenditure also rose from $21.2 million to $27.7 million, which in turn delivered an improved gross profit of $5.4 million, up from $3.6 million.
Meanwhile, net profit was $1.4 million, up from a loss of $942,000 in 2016.
Jade split in two mid-year, separating from its port management software business, now called Jade Logistics, to create greater shareholder alignment and improve focus to each area of the business.
Delving deeper, 2017 revenue includes $5.9 million from the logistics business before separation while 2016 revenue included $12.2 million from the logistics business for the full year.
"Digital services saw strong growth over the last four years and this continued with 49 per cent growth in 2017 across Australia and New Zealand," the company's annual report stated.
"We have also had an opportunity to assist our customers to revitalise older core systems with excellent results, continued investment into our core products, and strengthened our offering in managed services."
The restructuring resulted in Jade Software now being almost entirely owned by long-term investor and customer Skipton Building Society.
"The outcome is that Jade Software Corporation now has an aligned shareholder, and a strong financial foundation," the company's annual report added.
"With the ability to focus on the remaining Jade Software business, the board and management team have created greater clarity on the shape and future direction of the business and are excited about the opportunities for the future."
Looking ahead, the company states that it is well positioned, with sustainable profitability and a sound financial base.
"This strength allows the business to have the confidence to take advantage of the digital growth opportunities available in Australia and New Zealand, and to pursue ongoing strategic opportunities with our global customers," the report added.
Jade Software's former managing director, David Lindsay, transferred to Jade Logistics as CEO as part of the split and the board subsequently hired former medical technology executive Charlotte Walshe as Jade Software's CEO.