26 Nov 2013

Xero forecasts sales growth of 80%

5:34 pm on 26 November 2013

Xero is forecasting sales growth of more than 80% for the year ending March 2014.

But in a presentation to investors, managing director Rod Drury warned that continuing strong investment will lead to increased operating losses in the company's second half.

The accounting software company will be focusing on developing its product's capability, recruiting senior managers and accelerating its expansion in Britain and continuing to invest in the United States.

Mr Drury reiterated that, with $230 million in cash on hand at October the 31st, Xero has enough money to take it through to becoming profitable.

Earlier this month, Xero reported a more than $17 million first-half loss for the six months to September.

Sales, as the company forecast, came in at just over $30 million for the six months, up from $16.5 million in the previous first half.