Sharechat Logo

Serko shares soar 659% in 2017, topping charts on NZ stock market

Friday 29th December 2017

Text too small?

Serko is on track to be 2017's best performer on the stock exchange after gaining 659 percent so far this year as investors are increasingly confident it will move into the black. 

The online travel booking software developer, which has roots that date back to 1994, listed in 2014 and its shares first traded at $1.13. However, Australia's economic slowdown and project delays weighed on revenue and it touched a low of 25 cents in April before storming higher in October when it posted its first mid-year profit and reiterated expectations for a maiden annual profit as transaction volumes increased. It currently has a market capitalisation of $165 million and recently traded at $2.17. 

The Auckland-based company pushed even higher in November when it affirmed guidance for total operating revenue to be between $18 million and $19 million in the year ending March 31, 2018, and said operating expenditure will increase with its plans to expand the business in the Northern Hemisphere.

In the year to March 2017 it reported a loss of $3.3 million, narrowing from a loss of $6.3 million a year earlier. 

"They have had a fantastic six months ... it is a reasonably sized company now. It's getting nearer the mid-cap range," said Grant Williamson, director at Hamilton Hindin Greene in Christchurch. The company's increasing market value could see it on the radar for investors in 2018.

"The best way to get noticed on the market is to get to a certain size so market analysts have to produce research notes and until that happens, you won't get too many investors interested," he said. He underscored, however, the "company will now have to prove itself with positive earnings."  

Highlights for the year include a partnership deal with Gullivers Travel Associations and the development and release of Zeno, an artificial intelligence booking platform aimed at growing its customer base and giving customers the opportunity to add additional content to their travel programmes via the Zeno hub. 

In November, it announced a non-binding memorandum of understanding with travel management company ATPI Group, where  ATPI will be licensed to deploy Serko’s Zeno technology globally, including in the USA, Europe, UK and Asia.

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises after Orr talks up the economy
Comvita posts $27.7m net loss on goodwill write-downs
Buyers emerge for Denton Morrell client book
WEL reviewing capital structure of fibre business
Cavalier announces strategic collaboration with NZ Merino Company
Delegat continues to invest after record year
Kiwibank's annual profit eases as fee income drops
TIL lifts operating earnings, watching for slowdown
Vector profit slides 44% on struggling HRV writedown
Steel & Tube returns to the black but says margins are squeezed

IRG See IRG research reports