MIDDAY UPDATE: Wynyard Group split from Jade

By Pattrick Smellie

Jan 17 (BusinessDesk) - Christchurch software developer Jade Corp is splitting its fast-growing intelligence-gathering software arm, Wynyard Group, off as a separate entity, with Wynyard likely to be considering options for new capital to support growth by late this year.

Jade's managing director since 2009, Craig Richardson, will move to work exclusively at Wynyard, as chief executive, as it pushes into the US market and starts to challenge its parent, Jade, as the larger entity in the group.

Jade's total revenue last year was in the region of $35 million, with Wynyard believed to be about half of that, but growing quickly since its launch in March last year, and recently clinching a break into the lucrative US market through a contract with aviation and defence manufacturers Northrop Grumman.

Wynyard’s software helps manage and connect mission critical risk management, intelligence and investigations cycles, and is already used by a range of banks, police forces and intelligence agencies globally, as well as attracting significant contracts with New Zealand agencies and private sector customers.

Richardson would not be drawn on where new capital would be raised from, declining comment on options such as an initial public offering on the NZX or possible dual-listing here and on another international exchange.

Departing Coke boss says kiwis are immature about profits
The departing boss of Coca-Cola in New Zealand is leaving disappointed that companies are not appreciated for making money but says the country has been a great place to do business and live in.

George Adams is moving back to Europe after serving nine years as managing director of Coca-Cola Amatil NZ and Fiji. Irishman Barry O'Connell, who is currently running the company's Austrian and Slovenian business, arrives in April to take over the role.

The company has about 55 percent of the non-alcoholic ready-to-drink market in New Zealand where it competes with Frucor and supermarket brands. It employs 1100 people and makes a 20 percent return on capital.

"I absolutely loved New Zealand. But I think there is a degree of possibly immaturity in relation to our relationship with the need to be profitable," Adams said.

"I'm not sure that people really understand that companies must make profits in order to reinvest," he said, although it was also a country where major deals could be still be done on a handshake.

Dairy product prices up 1.1 percent in GDT auction
Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, the third straight increase since a drop in early December, led by whole milk powder and anhydrous milk fat.

The GDT-TWI Price Index rose 1.1 percent compared to the last sale two weeks ago. The average winning price rose to US$3,442 a metric tonne. Whole milk powder, the biggest product by volume, was up to 2.8 percent on the average of all contracts offered to US$3,288 a tonne and AMF rose 2.4 percent to US$3,253 a tonne.

The sale comes ahead of next Monday's debut inclusion of the Fonterra Shareholders' Fund in the NZX 50 Index. The units have been climbing in anticipation of that event, up from $7.31 to $7.49 since last week's announcement, closing yesterday at a new record of $7.49.

Today's sales give unitholders an update on global pricing of Fonterra's products and may be reflected in the units when they resume trading today on the NZX and ASX.

(BusinessDesk)


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