Xero Leads Market Higher

Accounting software company Xero produced the surprise of the day with a market announcement on revenue prospects and quickly followed by a sharp rise by the company's share price on NZX

Xero expects its operating revenue for the full year ended 31 March 2012 to double 2011 revenue of $9.3m. Committed Monthly Revenue (CMR) is now $1.75m or $21m annualized. 50% of CMR is from offshore markets.

 Paying customers using the Xero business software worldwide exceeds 60,000. There are 240,000 user accounts.

There are over 3,300 accounting firms now using Xero.

The share price jumped 34c to $2.89, a rise of 13.3%.

Mainfreight rose 13c to $9.75, Freightways 5c to $3.67, Hallenstein 5c to $3.65, OceanaGold 5c to $3.00, Port of Tauranga 5c to $10.30, Restaurant Brands 5c to $1.98.

Horizon Energy rose 11c to $3.85, Colonial Motors 10c to $2.90 and Chorus 6c to $3.24

AMP shed 10c at $5.47and SKYTV lost 9c at $5.08.

Late in the session NZ Oil & Gas said it would account in its next half year results for an additional $21m impairment on Pike River Coal after the receivers came up with three options that increased uncertainty about timing of any recoveries. NZOG’s share price eased 2c to 74.5c.

The NZX50 rose 2 points to 3282, with 54 rises and 38 falls.

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