Loss hits $3.6m as Serko hunts sales growth

Serko co-founder and chief strategy officer Bob Shaw (left), chairman Simon Botherway and co-founder and chief executive Darrin Grafton at a press conference to announce their plans.

Serko, the online travel booking business, widened its first-half loss in line with its May prospectus as it hired more staff to chase sales growth.

The Auckland-based company increased its loss to $3.6 million in the six months ended September 30, from a loss of $347,146 a year earlier, it said.

Sales rose 50 per cent to $4.7 million. Expenses increased 127 per cent to $8.9 million, fuelled by a 129 per cent increase in remuneration and benefits to $5.3 million as it increased its payroll from 65 to 118.

In June, Serko raised $17 million in new capital selling 15.5 million new shares at $1.10 a piece, via an initial public offering to fund its growth ambitions and repay debt.

Founders Darrin Grafton and Bob Shaw sold a further $5 million worth of shares into the offer, retaining about a 20 per cent stake and have agreed not to sell any more shares until two days after Serko announces its 2016 annual result.

The software-as-a-service company has forecast losses for its 18-month forecast horizon.