Wynyard drifts to back of the class

There has been more disappointment for the clutch of technology stocks that jumped straight on to the main board of the New Zealand Exchange in 2013-14 on the coattails of Xero’s market success.

Former high-flying software stock Wynyard Group, which listed in 2013, has slashed its annual revenue forecast in half while reporting a heavy loss.

The company, which sells database software for crimefighting agencies and large corporations concerned with fraud, reported a $37.5 million pretax loss for the six months to June 30 after a $11.5m write-down.

Half-yearly sales rose only modestly, from $12.4m to $12.9m.

Wynyard slashed its guidance for its full-year revenues from a minimum of $54m to $27m after excluding a $27m contract it announced in January.

Chairman Guy Haddleton said it had been ‘‘a tough first half for everybody: employees, your board and shareholders alike’’ but added that the company was in better shape after cutting its annual costs by $17m.

‘‘We are seeing positive momentum in North America with a focused sales team targeting 500 local, state and federal accounts and winning business,’’ he said.

‘‘We’ve got runs on the board in the US and are working hard to close significant deals in the Middle East.’’

Wynyard was one of eight technology stocks to list on the main

board of the NZX in 2013 and 2014, in the wake of massive gains in Xero’s share price.

But only two of the stocks are in positive territory, with cinema software firm Vista Group the standout success and utility software firm Gentrack tracking well after a wobbly debut.

Though not among the eight, Pushpay Holdings, which listed on the junior NZAX market in 2014 before graduating to the main board, has also beaten the trend. It has shown a return of more than 600 per cent since it first floated on the junior market – taking into account a 2016 stock split.

Wynyard saw its share price savaged this year because of issues with a $27m contract with a ‘‘national security bureau’’ and after it was forced into a heavily discounted rights issue to raise cash.

Wynyard shares closed at 31 cents yesterday, well down from their all-time high of just over $3 in 2014.