From Xero to $1 billion: Aussie tech company's founder joins global big time

Accounting platform Xero has chalked up its first ever half year profit on the back of strong global growth sparking a sharp shareprice rally that turned its founder’s stake into a $1 billion holding.

On Thursday, ASX-listed Xero announced a $1.4 million profit for the second half of the financial year as it posted a full-year loss of $27.1 million.

Investors hailed the result, the first full year under new chief executive Steve Vamos, sending Xero to an all time high of $60.93 by early afternoon. Its previous record was $55.98 and the shares closed up 10.75 per cent for the day at $60.15.

This year’s result was closely watched as Xero transitions from a founder-led company, with Rod Drury at the helm, to the leadership of Mr Vamos.

Thursday’s surge gave the accounting platform a market capitalisation of $8.6 billion, valuing Mr Drury’s 12.58 per cent stake in Xero at $1.08 billion. Mr Drury had already sold down some of his holding in 2017 netting $NZ95 million.

During the year Xero acquired data capture business Hubdoc and UK tax filing and compliance tool Instafile while its closest rival in Australia, MYOB, dealt with a takeover bid.

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Source: From Xero to $1 billion: Aussie tech company’s founder joins global big time