Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Gentrack 'deeply regrets' downgrade so soon after listing

Gentrack 'deeply regrets' downgrade so soon after listing, 'remains profitable'

By Jonathan Underhill

Aug. 6 (BusinessDesk) - Gentrack Group, whose shares are trading 12 percent below their June initial public offering price, says it "deeply regrets" cutting its guidance so soon after going public, which resulted from a project delay and a payment dispute at two large utility customers.

The airport and utility software company's stock surged on their debut on the NZX on June 25 after an IPO in which shareholders including chairman John Clifford and chief executive James Docking sold $63 million of existing shares along with $36 million of new capital used to repay debt and IPO costs. The stock held above the issue price until the company said on Aug. 1 that it would meet prospectus forecasts for sales and profit. The shares traded today at $2.11, down from an IPO price of $2.40.

While the company immediately briefed analysts, executives avoided public comment until today's statement.

"The Gentrack board deeply regrets the fact that it has to revise its FY14 forecast downwards so soon after listing on the NZX and ASX," Clifford said in the statement. "Gentrack remains a highly profitable business with excellent software solutions and a wide utility and airport customer base."

Institutional investors had expressed concern that Gentrack had to amend its guidance so soon after issuing a prospectus. The company said today that the setbacks only became clear "shortly before the release to the market on 1 August."

In the case of the disputed payment, Gentrack "continues to work with the customer towards a successful system implementation and fully expects to have an ongoing long-term productive relationship with the customer."

Gentrack is still working on the delayed project with the second customer "in a limited capacity under an existing contract while the final legal details of a new contract (to reflect the enhanced level of work to be undertaken ) are being agreed," it said. In both cases the details were commercial sensitive and confidential.

The company doesn't expect to have to drop its forecast dividend of $2.6 million to be paid in December or lower guidance for 2015 from its prospectus forecast.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news