Revenues surge for accounting software group Xero

Xero, the online accounting software specialist, has reported a 43 per cent jump in its annual revenues.

Xero chief executive Rod Drury hailed a 'milestone year' for the firm. Picture: Contributed

The fintech group, founded in 2006 in New Zealand, said operating revenues for the year to the end of March came in at NZ$295.4 million (£157.4m), helping its net losses after tax narrow to NZ$69.1m, down from NZ$82.5m a year earlier.

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It also said that operating cash flow turned positive in the second half of its financial year for the first time.

Xero is the largest cloud accounting software provider outside the US. In the UK, where its operations are headed by Scots-born managing director Gary Turner, subscriber numbers grew by 79,000 to 212,000.

“It has been a milestone year for Xero, achieving operating cash flow break-even in the second half of the financial year, and doubling subscriber numbers in less than two years to pass the one million subscriber mark,” said chief executive Rod Drury.

“We continue to recruit exceptional talent, and I’m proud our team has executed on all fronts to again achieve strong results for this financial year and build new foundations for additional waves of growth in the future.”

The firm recently agreed a tie-up with Administrate, the Edinburgh-based provider of training management software, in a move that will give customers the ability to integrate Xero’s systems with information about the performance of their online training programmes.