Christchurch-based tech firm Jade Software is ahead of its profitability plan after revealing 2014 annual results which reported growth of annual revenue from continuing operations by 13 percent to $30 million, compared to revenue of $26.5 million in 2013.
During a year focused on accelerating revenue and building value across each line of business, and putting a plan in place to deliver profitability in three years, the company reported a Net Loss Before Tax (NLBT) from continuing operations of $974,000, seen as a “significant improvement” on the a NLBT of $3.5 million in 2013.
From a business perspective, Jade Logistics secured 29 new contracts, driving 56 per cent growth in revenue in 2014 compared to 25 per cent the year previous while expenditure also grew by 10 per cent as Jade continued to invest heavily in new markets and introduce additional capability to the business.
Furthermore, investment in R&D increased from 12 per cent to 15 per cent of total revenue.
“Jade is starting to strike the right balance between short term profitability goals and the investment of time, capital, and talent in securing future growth and value in its focused markets,” says Hon. Ruth Richardson, Chairman, Jade Software.
“It is important that the business capitalises on the momentum generated in 2014 and matches the ability to build value for shareholders with a lift in trading results.”
David Lindsay, Managing Director, explains that the focus on revenue and creating value has been successful across Jade’s three lines of business.
“2014 was a year that saw our business capitalising on significant opportunities around the world,” he says.
“We continued to invest in new markets, including the Middle East and the U.S.A., enabling the rapid implementation of existing contracts, and the addition of new opportunities to our pipeline.
“In Australia and New Zealand, we narrowed the focus of our Solutions team to address the immediate opportunities for digital business innovation in the financial services and insurance sectors, and power utilities sector respectively.”
Jade’s terminal operating system, Master Terminal, experienced a record year and is one step closer to becoming the number one product for mixed cargo terminals globally.
Lindsay says Jade Logistics ended the year having secured contracts at 29 new marine and inland terminals in Central and North America, Africa, the Middle East and Western Europe.
Total terminals licensed now exceed 70 marine terminals worldwide – making Jade one of the fastest growing suppliers of terminal operating systems globally.
Becoming a digital business is no longer just a ‘trend’ or an option, adds Lindsay. As consumers expect to transact and engage online – anywhere, anytime, and on any device, new digital business models are imperative to the longevity and success of business.
To meet this demand, Jade combined its digital and enterprise expertise to create a compelling digital business capability. This resonated with the company’s target markets.
Revenue from new customers increased by 18 per cent, with a number of blue chip brands in the financial services and utilities sector added to its stable.
With more than 40 active partners, the company continued its investment in the JADE technology platform through enablement and training programmes, as well as a widely attended user group were provided to further nurture the JADE community.
Lindsay says Jade continued to invest in R&D as well as initiatives that cultivated a culture of innovation and built a pipeline of future product ideas including an internal innovation programme where teams work together from across the business in solving a customer or industry problem.
What’s in store for 2015?
According to Lindsay, 2015 will see Jade build on the revenue growth experienced in 2014, with the opening of new offices in Jakarta and Rotterdam to expand its global footprint.
The addition of capability in New Zealand and off-shore will continue which will support the company’s aggressive profitability goals.
In addition, Jade will continue to focus on nurturing and growing Jade Technology partners, adding new customers to the Jade Solutions business, and accelerating global sales and implementation of the Jade Logistics terminal operating system – Master Terminal.
Continued investment in market development and capability will ensure the long term growth of the company and will assist with the expected return to profitability within the next three years.