G3 Group hits targets

  • 27/07/2015
G3 Group hits targets

G3 Group, the mail operations and document management company which is listed on the new small-cap NXT market, says first-quarter trading was in line with targets.

Gross margin as a percentage of revenue was 24.5 per cent in the three months ended June 30, tracking closely with its 21.9 per cent full-year target, the Auckland-based company said in a statement.

Operating margin as a percentage of revenue was 22.7 per cent in the quarter, against an annual target of 20.1 per cent.

The NZX's new platform comes with a less onerous disclosure regime requiring regular operating metrics updates rather than the continuous disclosure on the main board.

NXT will ultimately replace the decade-old secondary board, the NZ Alternative Index (NZAX), which has languished from a lack of investor interest.

G3 was the first to join the new market on June 18, listing its 53.8 million shares at 75 cents apiece, giving it an implied market value of $40.4 million, but will not issue any new shares, according to the market announcement. G3 shares last traded at 87 cents.

The company is made up of New Zealand Mail, Send, Pete's Post and Fastway Post, which provide business mail services, and Universal Mail, a UK-based tourist stamp operation.

The company entered into document management with brands Filecorp and Eureka in October last year.

In 2014 the company reported earnings before interest, tax, depreciation and amortisation of about $3.5 million on sales of $30 million, according to the website.

G3 is owned by family trusts associated with Evan Christian and Jason Butler.

NZN