Thursday 25th November 2021
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Gentrack Group Limited (NZX/ASX: GTK), a leading provider of software solutions for utilities and airports, today released its results for the full-year to 30 September 2021.
Revenue growth was driven by an 8.8% increase in the Utilities business to $89.0m from $81.8m in FY20 with new customer wins and growth from existing customers offsetting previous years’ losses.
Veovo revenues were down from $18.7m in FY21 to $16.7m due to continued impact of Covid on the aviation industry, but pleasingly annual recurring revenues (ARR) were up 7.7% as new customers moved into live operation.
Underlying Group EBITDA of $12.7m is up 5.0% on FY20, slightly ahead of the guidance issued earlier this year. Costs were up 5.2% vs FY20 driven by increased investment in personnel, with continued savings in non-personnel costs.
The Group achieved strong net cash generation of $9.2m for the period resulting in $26.0m net cash at 30 September 2021, up from $16.8m at 30 September 2020.
We continue to deliver against the three strategic growth pillars outlined in our Strategy Presentation to the market in June – creating a strong customer base, winning new logos and growing our managed services business.
Our strategic position with our existing customer base continues to strengthen.
Customer status continues to improve with 72% of our customers at a ‘green’ high performance status.
Over the past 12 months we have won 7 new logos, including 3 new B2B energy retailers, further strengthening our position as a leading provider of solutions to C&I retailers.
The Managed Services revenues remained generally flat from FY20 to FY21. Since prioritising Managed Services as a focus area of our strategy, we now have a healthy pipeline and order book which are setting us up for FY22 and future growth.
Although performing well against our pillars, we continue to experience a drag on revenue growth, from prior period losses and supplier failures in the UK. The number of B2C supplier failures in the UK has accelerated in the last 3 months due to the global energy crisis and Government enforced price cap for the B2C segment – with a total of 9 customer insolvencies occurring since the beginning of FY21 compared to 6 in total from FY17 through FY20.
On 30 September 2021, Gentrack Group Limited (NZX/ASX: GTK) (“Gentrack”) advised that it anticipated an increase in FY22 group revenues vs FY21.
Over the intervening 8 weeks we have seen further turbulence in the UK energy market including the recent special administration of Bulb, a top 5 Gentrack customer.
In this context, Gentrack is pleased to reconfirm that FY22 group revenues are expected to be ahead of the FY21 revenues of $105.7m announced today.
Gentrack is not providing earnings guidance for FY22.
Gentrack has confirmed no changes to the FY24 targets provided on 16th June 2021.
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