Services companies star as tech sector scales new heights

Services companies star as tech sector scales new heights

IT services and support companies were the biggest contributors to growth in this year's TIN100 list of our top 100 tech firms. They were closely followed by the software sector, healthcare, financial services tech and digital media, with high-tech manufacturers and biotech also showing strongly.

Services and support companies accounted for $122 million growth, almost half of the total achieved by the top 100. Those top performing sectors were reflected in a top four unchanged from last year's list by revenue: Fisher and Paykel Appliances on $1.02 billion, Datacom Group on $870 million, Fisher and Paykel Healthcare on $556 million and Tait Radio with $214 million.

The revenue result for F&P Appliances was down from $1.04 billion last year, while Datacom's was up from $788 million. Fisher and Paykel Healthcare's revenue increased from $516 million while Tait's was up from $200 million.

The report organisers say high-tech manufacturers grew in North America as the economy there showed signs of strengthening, despite adverse impacts from unfavourable currency movements against the Australian and a slowing Australian economy.

Overall, TIN100 companies grew combined revenues for the 2012/2013 year by 3.7 percent to $7.26 billion, with export revenues up three percent to $5.3 billion.

The next 100 (ranked 100-200 by revenue), grew nine percent collectively to $640 million.

The companies with the biggest revenue growth this year were Datacom, F&P Healthcare, Orion Health (up $22 million to $122 million), airport logistics supplier BCS Group (up $22 million to $84 million) and cloud software firm Xero, up $20 million to $39 million.

Big movers in the second 100 (the TIN100+) were geological modelling software business Aranzo Geo on $11.7 million, Energy Mad with $9.2 million, life sciences managed services company Ceiba Solutions on $8.5 million and Technopak, with $10 million.

The successful companies for the report period were those investing more heavily in R&D and sales and marketing and focused on recruiting and retaining talent, the organisers said.

“You only have to glance through this report to see that New Zealand is full of businesses with ground-breaking ideas which, with the right support, have the potential to deliver global success,” Callaghan Innovation chief executive Mary Quin says. “Many of them have been nurtured through government R&D funding, research and technical services or venture capital, or a combination of those, all of which we are actively working to make simpler for businesses to access.”

TIN100 companies were also adopting mobile solutions, cloud computing and software as a service, which were creating new growth and profit opportunities.

This is the report's ninth year. It is released by the Technology Investment Network in association with Callaghan Innovation.