TASK shares surge on earnings upgrade

Shares in TASK Group rallied on Monday in trading on the ASX after the dual-listed New Zealand software firm upgraded its outlook.

TASK Group CEO Daniel Houden.

Shares in TASK Group, a transaction management software company whose clients include Guzman Y Gomez and Zambreros, surged 34 per cent on Monday on an optimistic outlook.

TASK, known as Plexure until last year, posted a 97 per cent jump in revenue to $NZ26.6m ($24.7m) for the six months to September 30 and flagged continued growth for the full year.

Its net loss for the six months was cut to about $NZ4.6m, from a $NZ8.5m loss for the same time a year earlier, according to its half year results released on Monday.

Shares soared 9.5c, or 34 per cent to 37.5c on Monday.

TASK chief executive Daniel Houden attributed the result to a successful restructure and a new agreement with McDonald’s.

“In light of the improving revenue and earnings trend reported for the last six months, and confidence in the impact of new terms with McDonald’s and other contracts recently delivered, the board and I are confident in the continued profitable growth of the business in (the 2023 financial year) and beyond,” he said.

TASK boss Daniel Houden.

TASK has upgraded its guidance for the year to June 30 and expects total revenue of between $NZ59 and $NZ62m and adjusted EBITDA of between $NZ8.5m and $NZ9.5m. This reflects an increase of up to 11 per cent and 157 per cent on previous guidance issued in August.

“We are well-placed to benefit as our hospitality customers are increasingly looking for ways to maximise their consumer relationships in a digital world,” Mr Houden said. “Powered by our platform, we have an exciting road map to bring the full range of the group’s capabilities to our customers across the Asia Pacific and US regions next year.”

McDonalds and TASK will work together.

The Plexure division provided the company with a 26 per cent increase of revenue for the first half, raking in $NZ17m while the TASK is par for the course on growth trajectory bringing in $NZ 9.6m in revenue.

TASK expects to boost its earnings for the 2023 financial year with a string of new customer relationships including a five-year term with McDonalds and has a new platform in development for Starbucks Australia.

TASK provides food service companies, stadiums and casinos products in enterprise management, point of sales systems, online ordering and applications.