IkeGPS first-half sales almost double, loss widens

Thursday 20th November 2014

IkeGPS Group said first-half sales almost doubled along with its losses as the company that sells portable measuring devices uses the proceeds of its initial public offering to build a sales force and further develop its products.

Sales rose to $1.7 million in the six months ended Sept. 30 from $829,000 a year earlier, the Wellington-based company said in a statement. The net loss was $1.9 million from $892,000 a year earlier.

At the time of its IPO, IkeGPS forecast losses through until 2016 as it chased sales growth. The company, which counts Jenny Morel's No 8 Ventures and business partner General Electric among its shareholders, this week announced a deal with Stanley Black & Decker to manufacture and distribute its smart phone measuring tool, adding sales that will help meet its prospectus forecast.

"For the next six months, we will be focused on further building out our sales and marketing teams and capability, including expansion into Asia and Europe," chairman Rick Christie and chief executive Glenn Milnes said in their report.

Since the $25 million IPO, the company has increased its workforce to 39 from 21, as it added sales, marketing and engineering workers. It has shipped more than 600 units of its Spike smartphone product since June, it said.

Expenditure more than doubled to $3 million in the first half, with the biggest gains in sales and marketing expanses and corporate costs.

The shares last traded unchanged at $1.

BusinessDesk.co.nz

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