Vista reassesses whether to increase 2014 goodwill value

Monday 2nd March 2015

Vista Group International, the cinema software and analytics company, is reassessing whether it has to increase the value of its 2014 goodwill, which would boost last week's reported annual profit of $3.99 million.

The Auckland based company's auditor Grant Thornton, advised the software developer there might be a technical accounting error in the treatment of its goodwill, valued at $33.7 million as at Dec. 31, it said in a statement today. If an adjustment upwards is needed, that will flow through to higher net profit and retained earnings.

"The board wishes to emphasise that any adjustment is a technical accounting item and will have no impact on the underlying trading results or cash position of Vista Group," the company said. "Vista Group is working with its advisors to validate whether any adjustment is required. Vista Group will provide an update to the market at the conclusion of this process with the details of any adjustment."

Vista listed on the NZX in August after raising $92 million in an initial public offering, of which $40 million was new capital to fund its plans for global growth. This month it agreed to buy Ticketsoft, a Dallas, Texas-based company whose software is used in more than 200 North American cinemas.

The shares were unchanged at $4.50 today, and have soared 91 percent from their $2.35 IPO price.

Last week Vista affirmed prospectus guidance for annual profit to rise to $8.11 million in 2015 on sales of $61.5 million, and will provide a trading update at the half-year result in late August.

BusinessDesk.co.nz

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