NZ cinema tech firm's shares plunge

Vista raised $92 million in an initial public offering in August 2014, including $40 million of new capital which it used to fund acquisitions, development plans, and reduce debt. Photo / iStock

Vista International Group, whose software technology manages cinema operations worldwide, has told share-market operator NZX it has no explanation for a 27 percent decline in its shares since early January.

From January 5 to February 15 the price of the Auckland company's shares dropped $1.60 from $5.85 to $4.25, prompting the letter from the NZX on whether it had disclosed all material information to the market as required under the continuous disclosure rules.

Vista's director commercial and legal Brian Cadzow wrote back that it had complied with its market obligations.

It's due to report its full year financial results for calendar 2015 later this month.

"Without providing any pre-release of those results we can say that the business continues to trade strongly, has strong prospects in its markets and continues to generate good cash flows to support its ongoing activities," he said in the letter to the stock exchange.

Vista raised $92 million in an initial public offering in August 2014, including $40 million of new capital which it used to fund acquisitions, development plans, and reduce debt.Its shares rose to $6.05 on Nov. 25 matching the record high first reached on Aug. 5.

The stock was sold at $2.35 through the IPO and within a month had triggered a please explain notice from the NZX after shares climbed 24 percent. It is currently trading at $4.55.

The company's 2014 prospectus forecast 2015 full year revenue of $61.5 million and net profit of $8.1 million. It reaffirmed that guidance in its half-year results published in October.