You are using an older browser version. Please use a supported version for the best MSN experience.

Serko trims annual losses, aims for profit

NZ Newswire logoNZ Newswire 22/05/2017 Paul McBeth

Serko almost halved its annual loss as the online travel booking software firm boosted sales and scaled back spending, giving it confidence to affirm its target of making a profit in 2018.

The loss narrowed to $3.3 million in the 12 months ended March 31, from a loss of $6.3m a year earlier, it said on Tuesday.

Trading revenue rose 9 per cent to $14.3m and operating costs were trimmed by 10 per cent to $18.8m.

"Serko, which celebrates its 10-year anniversary, has made strong progress over the last financial year," chairman Simon Botherway said.

"The current pipeline of new customers expected to join Serko's platform gives us confidence we will achieve positive profit in the current financial year and cash flow break even for the full year."

The company's shares have jumped 52 per cent to 38 cents since they hit a record low last month. In 2014, the company raised $17m selling shares at $1.10 apiece and existing investors sold a further $5m into the offer, however the stock has been punished as a slowing Australian economy and late product launches weighed on Serko's revenue.

The software developer has trimmed its cash burn, with an operating cash outflow of $1.6m in the year compared to $4.5m a year earlier, and after investing and finance activity, left it with cash on hand of $4.5m, about $3m-to-$4m ahead of schedule.

Serko scaled back spending on research and development in the 2017 year to $5.8m from $6.3m in 2016, and received government grant income of $1.1m in the 12 months ended March 31, down from $1.3m a year earlier.

Its R&D grant from Callaghan Innovation was extended by $2m over the next two years, adding to the $4.2m, three-year R&D subsidy it was awarded in 2014.

image beaconimage beaconimage beacon