TradeWindow, Arvida, Green Cross — latest company results

Latest results reported yesterday by NZX-listed companies included:

TradeWindow

Software specialist TradeWindow said its operating revenue jumped in the March year while its net loss narrowed.

Earnings before interest, tax, depreciation and amortisation (Ebitda) came to a loss of $11.7m, up 22 per cent, while the net loss for the year narrowed by 10 per cent to $9.8m.

Trading revenue came to $4.9m, up 27 per cent.

Chief executive AJ Smith said TradeWindow’s strong growth reflected increased demand for its digital trade solutions.

The company’s revenue increase reflected solid organic growth and the full-year impact of prior acquisitions, he said.

Annualised recurring revenue (ARR) grew by 39 per cent to $5.2m, the result of strong sales growth and 93 per cent customer retention.

Total operating expenses were $17.4m, up 21 per cent from $14.4m, reflecting planned investments in market development and the global trade platform. In March, TradeWindow announced cost reductions to put it on a more sustainable footing.

These reductions will be visible in 2024, the company said.

The company confirmed its guidance for 2024 trading revenue at $7m to $8m. It anticipated achieving break-even in monthly Ebitda by the end of 2025 and monthly cashflow break-even in 2026.

The tech startup debuted on the NZX in November 2021 at a 25 per cent premium, giving it a market capitalisation of $99m.

The company’s shares traded at $1.15 — up from its 92c reference price.

TradeWindow was a compliance listing. By complying with NZX disclosure rules, it has the option of raising capital from the market.

The stock closed yesterday at 36c, down from its January 2022 peak of $2.80.

Arvida Group

Retirement village operator Arvida Group lifted annual underlying earnings by 20 per cent to a record in the March year on strong resales of its occupation rights, but the bottom line was knocked by a smaller fair-value gain on the property portfolio.

Underlying earnings rose to $88m in the 12 months ended March 31, from $73.5m a year earlier.

Arvida lifted sales, including resales, by 16 per cent to $376.4m.

However, new sales volumes dropped 19 per cent due to weather and supply disruptions, but higher prices underpinned revenue.

Net profit dropped to $82.5m from $198.9m, with a smaller fair-value gain on the portfolio of $80.9m compared to $156m a year earlier. The prior period was also bolstered by a $43.9m gain on the acquisition of villages.

“The retirement living side of our business continued to experience high demand and delivered solid sales performance for the year,” chief executive Jeremy Nicoll said.

The investment property portfolio was valued at $3.43 billion at March 31, up from $3.06b a year earlier, the increase made up of the $80.4m fair value gain and $271.3m of development work.

Net debt grew to $615m from $447m, with the debt-to-equity gearing ratio rising to 30.5 per cent from 24.9 per cent.

The board declared a final dividend of 2.35 cents per share to be paid on June 22. That takes the annual return to 4.85c, down from 5.5c a year earlier. That equates to 40 per cent of underlying profit.

Arvida’s board introduced a new policy of paying 30-50 per cent of underlying profit from April this year.

The shares have dropped 28 per cent so far this year to $1.14.

Green Cross Health

Green Cross Health is urging the Government to increase funding for the sector as its remaining pharmacy and GP businesses face increasingly stretched margins.

The company lifted net profit to $50.5m in the 12 months ended March 31, from $33.1m a year earlier, due to a $30.3m gain on the sale of its community health division.

Operating profit from continuing operations dropped 29 per cent to $34.3m, even as revenue edged up 3 per cent to $493.6m.

The Green Cross pharmacy division — which operates the Life Pharmacy and Unichem brands — posted operating profit of $21.1m on revenue of $360.4m, down from earnings of $35.9m on revenue of $367.1m a year earlier.

The firm’s medical unit, which includes The Doctors general practices, posted an operating profit of $16.2m on revenue of $133.2m, compared to earnings of $16m on revenue of $111m a year earlier.

“In the period ahead, the board is expecting to see a return to more normal trading conditions, with patient and customer numbers starting to increase back to pre-Covid19 levels, though workforce shortages and inflationary pressures will continue to provide headwinds in the near term,” the company said in a statement.

“Green Cross Health calls on government to significantly increase funding to help offset cost inflation, enabling the most vulnerable to access healthcare services.”

The board declared a final dividend of 3.5 cents per share, to be paid on June 23, taking the ordinary dividends to 7c for the year, up from 6.5c a year earlier. Green Cross also paid a special dividend of 28c per share on April 28 after selling the community health division. The shares closed yesterday at $1.45, up about 26 per cent so far this year.