Construction tech firm Zutec builds on Nasdaq IPO with 20pc sales hike
Dun Laoghaire-based Zutec Holdings posted strong sales and earnings growth in its first set of results since its Nasdaq IPO in March.
In a filing with Nasdaq, the Irish construction software group reported strong growth in turnover and earnings for the January to March quarter and said it was on target to increase year-on-year sales in its financial year ending June 30 by 42pc.
Zutec listed on the Nasdaq First North market in Stockholm, raising €5m in new equity from mainly Nordic institutional and private investors.
Zutec CEO Brendan O'Riordan said it was a very positive third quarter, with new clients such as Cairn Homes and Ethos Engineering in Ireland, Quintain and McAlpine in the UK and significant project wins in Australia from major construction companies such as Lendlease and Mirvac.
He said the positive results were largely down to the Irish and Australian markets, but it has established strong potential business in the US construction market and is also looking to expand into the Canadian market.
Sales in the quarter of €960,000 were 20pc higher than forecast, with confirmed sales for Zutec's financial year of €3.45m and contracted sales to 2021 in excess of €6.2m.
Zutec is planing to implement a new approach to sales, said O'Riordan. "Historically we have focused on large projects and clients but we now believe that the more individuals we have using our software the easier it will be to win large contracts with the added benefit of much higher revenues from increased user numbers," he said.
"Over the past 12 months in Ireland we have been working with small design and construction firms to provide solutions for their business and we now intend to roll out this locally proved sales model in all our sales channels around the world."
Sunday Indo Business