Tuesday 28th April 2020
|Text too small?|
Transport technology services company EROAD today released its regular quarterly update for the three months ended 31 March 2020 and provided an update on the impacts of COVID-19 on its business.
Key points include:
• EROAD is operating effectively under its business continuity plan to support its customers that are providing essential services;
• EROAD’s expectations for the FY20 financial results remain; and
• EROAD is well positioned and remains in a solid financial position despite the current uncertain economic environment.
Business operations continue to operate effectively to support essential services
EROAD’s priority during these challenging times is the safety of our staff and supporting our customers. Operating effectively under its global business continuity plan, EROAD’s products and services continue to support the supply chain and activities of transport and service providers.
Many of EROAD’s customers provide essential services that are keeping economies running, with over 30% of New Zealand heavy customer vehicles, over 50% of total Australian customer vehicles and over 60% of total American customer vehicles continuing to operate despite the restrictions implemented to stop the spread of COVID-19.
In New Zealand, EROAD was designated an essential service and has continued to operate during the Level 4 lock-down to support customers that were also classified as essential service providers. With the transition to Level 3 on Tuesday 28 April, EROAD will return to installing its EHUBO and EROAD Where products for all its New Zealand customers. We expect, with the return to operations of freight, civil construction and forestry under Level 3, most of EROAD’s New Zealand customers will resume operations.
There is some temporary disruption in the manufacturing of EROAD’s EHUBO units, however current inventory levels will support customers until at least the end of July.
Growth continues in Q4, despite COVID-19
Growth during the final quarter of the 2020 financial year saw 3,951 units being added, resulting in an annualised growth rate of 14%. This was slightly lower than expected.
In New Zealand we continued to see growth in the Small to Medium Business (SMB) segment across a range of industries. Some deals were delayed in late March, as the country entered Level 4 lockdown, but it is anticipated that many of these will flow through in the following quarter as businesses commence fuller operations in Level 3 and lower levels.
Australia saw continued growth in the SMB segment, but some Enterprise customers deferred buying decisions due to COVID-19. During the quarter a medium sized Trans-Tasman customer fleet was deployed. This customer was acquired through EROAD’s Australian sales team.
No comments yet
Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution
Michael Hill International Limited (NZX: MHJ) Trading Update
Tilt Renewables Limited (NZX: TLT) Q3 December 2020 Quarterly Production Results
Mercury NZ Limited (NZX: MCY) Tiwai to continue operations through 2024
NZXO Announcement: Rollover of Fletcher Building Industries Ltd Notes - FBI150
Meridian Energy Limited (NZX: MEL) Rio Tinto confirms Tiwai Exit in December 2024