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2010-2011 Annual report
Download the full annual report (13 pages, PDF), or read the Chair & Chief Executive's report below.
Chair & Chief Executive's report: quick links
A year of overachievement in tough times
2010-11 was a strong year for Theta in a challenging economic environment dominated by the global financial crisis and earthquakes in Canterbury. An ambitious revenue target was set at 15% above the 2009-10 result and both management and board are delighted to have surpassed this goal.
We appreciate the continued support from our loyal customers who rely on us to create smart technology solutions that generate sustainable results. The biggest of these are Genesis Energy and the Southern Cross Healthcare Group - with Southern Cross Travel Insurance coming on board this year.
We exceeded our expectations across all measures. Our revenue was up 23% on 2009-10, largely attributable to the net gain of 12 clients. Notably we gained three new MS Dynamics NAV customers as this part of our business becomes even more established. Costs were prudently controlled and the result was a solid profit growth.
Daily revenue gradually increased throughout the year from $39,000 to $47,000. Our strategy of retaining our skilled staff by utilising them on internal projects in the challenging business environment of 2009-10 allowed us to seamlessly deliver this increased workload.
Expanding the business
Financially the company is in a robust position with no external debt, making us well able to fund growth. We have laid the foundation for expansion beyond normal organic growth and expect this to begin to bear fruit during the 2011-12 year.
.img_assist_custom-300x200.jpg "Streetside@Theta is home to Theta Software and Sales")
Streetside@Theta is home to Theta Software and SalesEmerging brands
In 2010-11 the main source of growth has been our two largest practices, which have emerged this year as strong brands in their own right. Theta Software is the biggest and together with faster growing Theta BI (Business Intelligence) they account for more than 60% of our business.
Streetside@Theta
With growth across the business we made a decision to secure additional space in Theta House, dubbed Streetside@Theta.
Geographic diversification and acquisition
During the year we added two staff in Wellington and are developing relationships with local customers and complementary businesses. We are currently working on two possible acquisitions.
Project highlights
Building on work we’ve already done at electricity meter provider Metrix we’re now part way through a new Microsoft BizTalk Server integration project to support smart meter services and the electronic activation, reading, disconnection and reconnection of meters.
This year Southern Cross Travel Insurance (SCTI), an online travel insurer, also selected Theta Software as a key supplier of core systems. Our first project with SCTI, the support and modernisation of their suite of websites, is already delivering increased reliability – a critically important factor to a company that does 80% of its business in NZ online. We’re also at the beginning of an 18-month project to replace their legacy policy administration system with a bespoke solution that will deliver tight integration between online and back office systems, cost and time savings and competitive advantage.
Microsoft technologies
Microsoft technologies play an increasingly important role across all areas of our business and we have approximately 20 Microsoft specialists.
Within Theta Software we now have a specialist BizTalk team. .NET development work is also on the increase, and our innovative Windows Mobile application for VirCom EMS earned us a finalist nomination for the Microsoft Supreme Award - Business Impact Solution of the Year in the 2010 Microsoft Partner Awards.
We have one of the most experienced Microsoft Dynamics NAV implementation teams in New Zealand and Theta BI has recently featured in a Microsoft case study for its work with boutique hotel chain Heritage Hotels.
Our IT Systems Management practice manages SQL servers for five customers and has helped eight customers make the transition to Microsoft’s cloud offering, Microsoft Online Services.
As part of our ongoing development of Microsoft capability we continued to re-certify our staff in the 2010-11 year, earning us Microsoft Silver Certified Partner status.
Moving to the cloud delivers scalability and reliability
Internally, we’ve continued our strategic focus on outsourcing core business systems to the cloud. Following our switch to MS Online Services for email, we’ve replaced our bespoke time and project management system with IT business management platform Autotask. It’s the key system we use to run our business; managing support and service desk requirements, projects, time recording and billing.
Continuing the cloud theme we have signed up with New Zealand company Sonar 6 for the provision of their award winning HR performance management system.
Both systems allow us to scale without fuss and pay as we grow rather than making a large capital outlay.
Website and online advertising generate new leads
Our website continues to grow, with unique visitors up 118% on last year. The site ranks particularly well for specific, less widely used technologies such as PowerBuilder and Liferay Portal, bringing in unsolicited business and new clients in those areas. Our increased focus on the use of Google ads is also delivering new business – with particular success in sales of Microsoft Online Services.
It’s time proven, especially for service companies, that you are only as good as your people. Our people are our core asset and are the key to our reputation throughout the IT industry as a high quality partner with experienced staff and specialist skills.
To ensure our excellent service we are committed to objectively and consistently measuring, managing and developing our staff, and this work is already being supported in the new financial year by the rollout of Sonar 6 HR performance management system.
Our wide network of associates and permanent staff have remained loyal to the company and its clients throughout a challenging year and this has worked to everyone’s advantage. The mix of core staff and associates provided project flexibility and the ability to access specific expertise for the benefit of our customers.
We have a staff of more than 80 of which around 75 are billable. Our billing staff numbers increased to an average of 54 full time equivalents (FTEs) in the year ending March 2011, where one FTE is defined as 225 days billed.
We are particularly proud of the response of everyone at Theta to the Canterbury earthquakes donating over $8,000 and assisting a Christchurch-based IT consulting firm.
At the October Annual Shareholder Meeting a number of changes to Theta’s constitution were made. These included a change in board composition, so that independent directors make up more than 50% of the board, and enabling the issue of shares to facilitate the growth of the company. Theta has a robust strategic planning cycle, a dedicated and capable management team, and good monitoring and reporting to the board and shareholders.
In the year ahead we plan to further grow the business and invest in:
- Increased capacity in marketing and customer relationship management
- Development of our Wellington and Australian presence
- Innovation, especially mobile and cloud technologies
- Partnering both as a reseller and a provider of services
With a strong balance sheet Theta has the ability to grow organically and by acquisition where sound opportunities arise.
.preview.jpg "Susan Paterson, Chair, and Rob Lee, CEO")
Susan Paterson, Chair, and Rob Lee, CEO
Download the full annual report (13 pages, PDF)
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What our customers say
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"Greater reporting capability and flexibility gives us a clearer picture of what’s going on across the hotel chain. Daily emails of automated reports have proved a really useful way of sharing information and our customer reports now look more professional. Most importantly, quicker and more regular access to business information has helped focus our sales team, which in turn will drive additional room nights and revenue."
Sue Christie, Reservations Development & Yield Manager
