Gentrack CEO Docking to leave next year, board starts looking for replacement

Thursday 30th July 2015

Gentrack Group chief executive James Docking is to leave next year, ending a decade long tenure as leader of the transport and utilities software developer.

The board will start an international search to replace Docking, who has been in charge of Gentrack since 2005, the company said in a statement. Docking will stay on until the handover is made, and may remain involved in the business in a role that's still to be agreed, it said.

"Having reassessed the medium term executive needs of the expanding business, and my own personal circumstances, I have made the difficult decision to step back from the CEO role next year and assist with the transition of a new leader to take the business through its next stage of growth," Docking said.

He has been with the company for more than 20 years and oversaw its initial public offering last year.

The company's listing got off to a bad start after a significant earnings downgrade just five weeks after the IPO over a dispute between Gentrack and a major customer about a payment. Gentrack got a ticking off by market regulator the Financial Markets Authority, which said the company could have been clearer when flagging certain risks, though no action was taken.

Last week, the company said it expects annual earnings before interest, tax, depreciation and amortisation of between $13 million and $15.5 million in the year ending Sept. 30, after signing a deal with a UK water utility firm, which is expected to be implemented in 2017. When announcing its first half results in May, two contracts under negotiation were seen as a risk to Gentrack meeting its prospectus forecast for the 2015 full year of $44.7 million revenue and $15.5 million Ebitda.

The company shares, which were sold in the IPO at $2.40, last traded at $2.20, and have increased 2.3 percent this year.

BusinessDesk.co.nz

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