Plexure shares jump on raised forecast

Photo / file

Shares in NZX-listed mobile marketing company Plexure were up 7.6 per cent to 85c in mid-afternoon after it raised its already strong revenue guidance.

The Auckland-based software company, which attracted fast-food operator McDonald's as a 9.9 percent shareholder in April last year, and which counts the US White Castle burger chain, 7Eleven and Ikea as customers, had forecast an annual revenue increase of as much as 36 percent at its annual shareholders' meeting in September last year.

Today it bumped that to 48 per cent. Plexure now expects revenue between $24.5 million and $25 million for the current financial year, up from $16.9 million the previous year.

It says it won't be providing guidance for earnings before interest and tax "as the impact of the company's expansion plans and platform investment cannot be accurately assessed at this juncture."

The company reported a net profit of $1.2 million for the six months ended September, up from $1.1 million in the same six months a year earlier, on a 45 percent increase in revenue to $11.8 million.

Plexure shares traded at 79 cents ahead of today's announcement, up from 29 cents 12 months ago, giving it a market capitalisation of $110.6 million. McDonald's paid 39.05 cents per share, or $5.4 million, for its stake, which was a 15 percent premium to the volume-weighted average price in the month of March 2019.

Plexure boss Craig Herbison. Photo / Dean Purcell

The global fast-food chain had been a Plexure customer world-wide since 2015 and has accounted for much of the company's revenue growth. Plexure's technology is used in mobile engagement and loyalty programmes.

(BusinessDesk)