Diligent shares hit record high

Tuesday 17th January 2012

Shares in governance software firm Diligent Board Member Services climbed 6.4 percent to a new record high in NZX trading this morning, after unveiling another quarter of rapid sales growth and forecast its first operating profit in the 2011 financial year.

Diligent, who specialise in selling operational software to boards and businesses, posted 287 percent growth in new fourth quarter sales, representing US$4.5 million, and taking total sales to US$25.7 million – breaking by the record set in the prior quarter by more than US$1 million.

That saw the share price rally to a new record high $2.50 in early trading, having already surged 30 percent since Jan. 1, but fell back to $2.40, up 2.1 percent from yesterday’s close.

Diligent’s shares have been one of the stand-out performers on the stock exchange since March 2009 when the shares were languishing at just 10 cents apiece.

The rise in new sales helped contribute to the further announcement that for the first time, Diligent will be profitable for the 2011 fiscal year on an operational basis, posting an increase in revenue of 116 percent to year end – a jump from US$8.3 million to just under US$18 million.

The climb in sales of Diligent’s Boardbooks, which aim to provide an easy to access operating interface for users, is in no small part due to the establishment of the iPad as a more common commodity.

The break down of sales reveal that the US, followed by Canada, has provided the majority of custom, however it is noteworthy that after the introduction of a rep in South East Asia, the company reported 181 new sales for the fourth quarter in Asia/Pacific after making none in the same period a year earlier.

(BusinessDesk) 12:00:12

BusinessDesk.co.nz

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