The rise in Wynyard Group's share price continued
yesterday as New Zealand investors remained enamoured of the
In 10 days, the security and intelligence software company's
shares have risen more than 90%, the latest rally following
the group's announcement it met its forecast sales target of
$21.5 million last year.
Wynyard shares closed at $2.23, up 17.4% on the day. They
listed last June at $1.10.
Milford Asset Management senior analyst Brooke Bone said
Wynyard had every hallmark of being a ''very successful''
In some ways, the recent share price movements were not as
extreme as they seemed. In part, the share rise was a
''There is increasing confidence in the products they sell
and what they do. There is interest in the sector both here
in New Zealand and in the United States. Wynyard has not
participated in that so the rise is partly catch-up.''
Asked whether there was any correlation between the rise last
year of accounting software company Xero and the rise of
Wynyard, Mr Bone said Xero was one of the exciting stories on
the NZX and exciting stories had ''momentum investors''
jumping into the market.
However, Xero did not rise in value in a straight line and Mr
Bone warned technology shares could be volatile.
The small number of shares on issue made the shares illiquid,
which exacerbated price movements, in some cases, he said.
The Auckland-based company, which was spun out of Jade
Software last year, said annual sales rose more than 62%
revenue in 2013.
It also said the board would review its 2014 and 2015
business plans and targets in the first quarter of this year,
according to the statement.
Wynyard's offer document projected 2014 revenue of $27
''The couple of wins they've had are obviously highly
impressive,'' Craigs Investment Partners broker Greg Easton
''They've delivered on what they said they'd do, and that's
always important for a new company.''
In November, Wynyard brought 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
Chief executive Craig Richardson said the number of new
opportunities materially increased in the fourth quarter of
2013 and Wynyard took steps in November to build capacity to
qualify and service this increased demand.
Wynyard will announce its full-year results on February 24.
Mr Bone said Wynyard would not make a profit this year after
investing in the new opportunities.