Gentrack sees first-half revenue up 20% as new projects come on stream

Thursday 23rd February 2017

Gentrack expects first-half sales to rise about a fifth as a number of projects came on stream in the period, making up for any headwinds from a strong New Zealand dollar.

The utilities software developer told shareholders at today's annual meeting in Auckland first half sales will be about 20 percent higher than the $18.5 million it reported in 2016, "with multiple projects going live" and offsetting "currency headwinds", according to presentation slides filed to the NZX. Auckland-based Gentrack expects its earnings before interest, tax, depreciation and amortisation margin to be 30 percent, implying ebitda is projected to be $6.7 million in the six months ending March 31.

The company affirmed its long-term guidance for revenue and ebitda growth in excess of 10 percent, subject to the timing of some projects.

The slides show Gentrack may benefit from airport investment, which the company's new software focusing on automating, simplifying, and making easier day-to-day operations. The company will continue with a strategy of focusing on its existing profitable markets and consider acquisitions in airport and utility market with debt funding of up to 1.5 times ebtida.

Shareholders will vote on approving a $100,000 increase in the pool for directors' fees to $450,000 to allow for "the potential future appointment of an additional director and any adjustments to individual director remuneration which may be necessary to reflect changes in responsibilities and the market". They will also vote on whether to re-elect directors Leigh Warren and Graham Shaw.

Gentrack shares rose 0.9 percent to $3.35, and have gained 59 percent over the past 12 months.

BusinessDesk.co.nz

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