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Wynyard doubles first-half loss

NZ Newswire logoNZ Newswire 23/08/2016 Sophie Boot

Wynyard Group, the intelligence software developer, has more than doubled its first-half loss and halved its full-year guidance.

The net loss widened to $36.3 million in the six months ended June 30, from $17.6m a year earlier, the Auckland-based company said on Wednesday.

Operating expenses rose 49 per cent to $38m as revenue increased 4.5 per cent to $12.8m.

The company slashed its full-year earnings guidance to between $27m and $30m from a previous range of $54m to $65m. This excludes a $27m government contract the company announced in January.

"It's been a tough first half for everybody; employees, your board and shareholders alike," chairman Guy Haddleton said.

"Given the significance of the very large contracts we believe a prudent approach to revenue forecasting is necessary. None of the large deals in our pipeline have been lost - we're making good progress but wish to be cautious in setting market expectations."

Mr Haddleton said the company was in a better shape to deliver on opportunities in the second half as it had implemented $17m of annualised cash savings in the second quarter.

The company is forecasting monthly cash burn will fall to $2.4m in the second half, from $4.8m in the first half as a result of expected revenue increase and implemented cost savings.

Wynyard has this year revamped its board and restructured into two units while embarking on a cost-control strategy after a disappointing 2015 performance. Its shares recently traded at 37 cents and have tumbled 79 per cent this year.

The share price has fallen since a disappointing annual result in February, where revenue of $26.3m was well below the forecast $40m-to-$45m, followed by a heavily discounted rights issue in March to raise working capital.

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