GeoOp shares jump 11% after annual revenue beats merger document forecast

Monday 11th July 2016

GeoOp's NZAX-listed shares climbed 11 percent after the management app developer said annual revenue beat forecast.

Annual revenue rose to $4.58 million in the year ended June 30, ahead of the $4.54 million projected in an independent adviser's report on the Auckland company's merger with Australian mobile sales app developer InterfaceIT. Shareholders approved the deal in May, it completed on June 1, and GeoOp today said integration was "significantly advanced" with a number of savings already starting to be realised.

The shares jumped 3 cents to 31 cents, the highest level since May 27, valuing the company at $15.3 million.

"GEO’s strategic focus remains on providing a suite of tools to manage mobile workforce productivity," the company said in a statement. "The addition of a sales application, which helps distributed sales forces to optimise one-on-one, face-to-face conversations with potential customers, has added to the suite of products that GEO’s customers use to make their businesses more efficient."

GeoOp bought InterfaceIT for $9 million in shares and convertible notes, giving the Australian company's owners about 32 percent of the merged entity, rising to as much as 64 percent if certain conditions are met in what independent adviser Simmons Corporate Finance called a worst-case scenario for the GeoOp shareholders in its report on the deal. The independent adviser valued InterfaceIT at between $6.1 million and $8.5 million and added an additional $2.3 million to $4 million of benefits arising from a merger.

The company affirmed plans to raise more capital to fund product extensions and expand the business.

BusinessDesk.co.nz

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