Enprise Group (NZAX: ENS) is seeking to repeat its proven formula of building valuable technology businesses, kicking off a capital raising roadshow this week in a bid to fund rapid global growth of its new cloud billing engine and customer self-service portal “Datagate”.
Enprise is seeking capital to further grow and develop its Datagate Innovation business. Datagate Innovation is a developer of Cloud Billing Engine and Customer Self-service portals for Hosted Service Providers, Telco and Utility resellers. Enprise Group CEO Mark Loveys says Datagate has the highest growth potential of all Enprise’s businesses.
“Datagate is a new product that is exploiting the world-wide trend towards IT and Telephony resellers becoming Telco, Utility and Hosting resellers,” he says.
“The international market for this product is extraordinarily large. We plan to raise capital to accelerate Datagate sales, implementation and development. We have four customer sites operating live and two undergoing final installation. This year we’ll look to extend our sales efforts into international markets via our SAP Business One and MYOB network relationships.”
Phil Norman of capital markets advisory firm, CM Partners, has been appointed as advisor to the Enprise Group board to assist with the capital raising. He and Mark Loveys will present investment proposals to a number of institutional investors and high net worth New Zealanders during the next two weeks. Mark Loveys says the amount of investment sought initially is low, in the order of $800,000, but with an emphasis on finding investors looking to the longer term.
Enprise’s management team has a strong track record of involvement in building valuable businesses. These include PC Direct, sold in 1998 for $NZ27 million; Exonet International, sold in 2000 for AU$30 million; Datasquirt, sold in 2011 for US$12.5 million; and EMS Cortex, sold in 2011 for US$11.5 million.
Mark Loveys says Enprise Group and its people have a long history of successfully using venture capital to create substantial value for shareholders and professional investors.
“This time around we’d like to work with and for New Zealand public investors,” he says.
“While this month’s investor roadshow will target high net worth local investors, any interested investor can participate in our value creation strategies by buying ENS shares on the NZAX exchange.”
The company’s shares have climbed more than 19 percent this year. In the current year Enprise Group grew its recurring revenue to almost 50% of its total revenue of $7 million. It reported a net profit before tax of $232,000 for the 2014-2015 financial year after making significant strategic investment in future growth across its three operating divisions, as well as writing off $119,000 in one-off costs associated with moving its stock exchange listing from Australia to the NZAX.
Enprise Group offers investors a portfolio of three software businesses. Each is managed by a proven management team, has its own international growth strategy and has strategic value that can be leveraged by the other businesses of the group.
Full financial statements for the March 2015 year can be viewed here.