Jade cuts its losses as it invests for growth

Christchurch-based Jade is winning port customers for its Master Terminal software and piloting a new wealth management application.

Jade Software has cut its losses by NZ$2.5 million but is continuing to spend more in developing markets and R&D.

David Lindsay

Managing director David Lindsay said Jade still aims to be profitable in three years, but is focusing on creating significant value for its shareholders.

"It has been a really good year of progress towards our goals," he said.

Jade reported annual revenue from continuing operations up by 13 percent to NZ$30 million in the year to 31 December 2014, compared to revenue of NZ$26.5 million in 2013

Its net loss before tax was NZ$974,000 from a loss of NZ$3.5 million in 2013 but expenditure was still up by 10 percent year-on-year.

Jade invested in key markets, such as Indonesia where it has opened a sales office and in building capability in the USA and the Middle East.

Investment in R&D increased from 12 percent to 15 percent of revenue.

Lindsay said Jade was piloting its first SaaS product in Australia, a wealth management product that would allow financial advisers to automate service to clients.

Customers were demanding that their internal systems be mobilised, he said. Jade was winning blue chip clients in the insurance, finance and utilities sectors as a result.

"That puts Jade in a good position with 30-plus years of ERP experience," he said. "Everyone has to be into digital business because their customers are demanding it."

Jade Logistics won 29 new contracts for its Master Terminal ports management software, driving 56 per cent sales growth up from 25 per cent in 2013. The software now services 70 terminals in total.

"In Australia and New Zealand, we narrowed the focus of our solutions team to address the immediate opportunities for digital business innovation in the financial services and insurance sectors, and power utilities sector respectively."

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