McDonald's has become Plexure's biggest customer. The chain uses the Auckland software company's product in 50 countries, and accounts for 80 per cent of Plexure's revenue. Photo / 123rf
McDonald's has become Plexure's biggest customer. The chain uses the Auckland software company's product in 50 countries, and accounts for 80 per cent of Plexure's revenue. Photo / 123rf
NZX-listed mobile engagement company Plexure saw revenue jump 45 per cent to $11.8 million for the six months ending September 30 - in part because of expanded global business with McDonald's, and a new contract with fast-food chain White Castle, which operates 400 restaurants across the US.
Half-year profit increased from a year-ago, up $89,000 to $1.2m.
Wage and salary costs rose from $1.5m to $4.6m as the Auckland-based startup's headcount increased from 37 to 88 by the end of the half.
Cash on-hand jumped from $6.1m to $13.6m - primarily because of McDonald's $5.4m cash injection as it took a 10 per cent stake in April, making it the largest single shareholder.
The results were in line with expectations and the company reaffirmed its full-year revenue guidance of $21m - $23m (and it continues to offer no earnings forecast).
Chief executive Craig Herbison says the cash pile will be be used for "aggressive' US expansion.
Plexure creates mobile software that helps companies get people to their bricks-and-mortar stores, then buy more stuff once they arrive.
Its features include mobile marketing, loyalty schemes and a new feature being piloted for McDonald's in Japan that sees an order start to be prepared once a customer drives into a set "geo-fenced" area near the outlet where they'll be served.
The McDonald's investment did not come with a board seat - but it did come with a couple of hooks, including restrictions on Plexure doing business with the fast-food giant's direct rivals.
The yellow arches also cast also loom large in Plexure's accounts, with McDonald's accounting for some 80 per cent of the Kiwi company's revenue.
But Herbison recently told the Herald that his company is also growing business with other clients, including Ikea and 7-Eleven, and that he saw plenty of scope for developing clients outside of fast-food (the White Castle deal closed before the McDonald's investment was finalised).
The CEO said headcount had hit 100 as his company entered the second half - and he was on the hunt for another fifty or so staff.
Plexure chief executive Craig Herbison at his company's Auckland HQ. The CEO says his company's cloud-based software means it can tackle global expansion while saying in NZ. Photo / Dean Purcell
At its recent annual meeting, Plexure shareholders confirmed the appointment of new director Jack Matthews and re-elected directors Sharon Hunter. The board is chaired by Xero alumnus Phil Norman.
Shareholders also approved a remuneration bump for non-executive directors in aggregate from $250,000 to $500,000. Herbison said the increase was necessary because his company was on the hunt for name US-based director.
Plexure 12-month NZX-performance. Source / NZX
Plexure shares closed yesterday at 84c, giving it a market cap of $117m.
