Xero has tremendous growth to come: CEO

Xero chief executive Steve Vamos. Photo / supplied

New Xero chief executive Steve Vamos says the company has a tremendous amount of growth left, and it won't be losing the vibrant environment that has typified the tech firm.

The accounting software company posted its 2018 full year result today - the first under Vamos' leadership.

For the year ended March 31, the Wellington-based firm narrowed its full-year losses by 60 per cent to $27.9 million.

It delivered its first positive operating profit of $26m since launching in 2006, compared with a $28.6m loss last year.

The company said it had made a conscious effort to improve efficiency, something which was often put to one side when companies were focusing on expansion.

Asked about changes at Xero, Sydney-based Vamos said his plan was to continue with "more of the same".

"I think there's this suggestion sometimes that you can't stay as an exciting, fast-paced and changing company as you get bigger, but the experience I have with big global technology companies is that they have a way of doing that, and Xero has that right through its DNA," he said.

"It sounds boring but for us, it's all about continuing the journey we're on."

In the last five months Xero has undergone a number of changes, first delisting from the NZX and consolidating on the ASX, and then appointing Vamos with founder Rod Drury taking a step back from day-to-day management.

Drury has stayed on the board as a non-executive director and still owns just under 13 per cent of the company.

In its shareholder presentation, Xero said the decision to consolidate its listing on the ASX had given it access to a larger market, increased liquidity and broader analyst and broker coverage; including from the likes of Bank of America, Merrill Lynch and the Royal Bank of Canada.

In the coming year, South Africa and Canada were two focus markets Vamos said, but the company was still continuing to grow across its other markets.

"We do have to be careful not to spread ourselves too thin, so this year we're focusing on a lot of English speaking countries but at some stage in the 2021 timeframe we will consider non-english speaking markets."

Xero operates in 180 countries and has more than 2000 staff. Vamos said the company would continue to expand into new countries in the coming year.

Based on customer numbers, New Zealand is now the company's third largest market behind Australia and the UK.

Vamos also reiterated his view of Xero as a "proud New Zealand business", and said there were no plans to shift its headquarters from New Zealand.

Shares have risen from around A$29 six months ago to A$41.28 when the market closed on Wednesday, a jump of almost 43 per cent.