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

 


Gentrack's Docking defends prospectus as FMA asks questions

Gentrack's Docking defends prospectus as FMA asks questions

By Jonathan Underhill

Aug. 6 (BusinessDesk) - Gentrack Group chief executive James Docking says the company's prospectus was the result of thorough due diligence and expert advice, and the subsequent cut to guidance reflected the complex nature of its airport and utility software projects.

The shares last traded at $2.12, below the initial public offering price of $2.40 in June, having slumped on Aug. 1 when the company said it wouldn't meet its prospectus forecasts for 2014 sales and profit because of a payment dispute and a delay to a contract. The company said today the hold-ups, involving two large utility customers, became apparent only shortly before the Aug. 1 announcement.

"We spent a lot of money with advisers through due diligence," Docking told BusinessDesk. "The market hates uncertainty and that's the nature of it," he said of the sell off in the stock. "We do big, complex projects and they are notoriously difficult to forecast."

In the case of the delayed contract, Docking said he has "a strong belief we will get it signed soon." The payment dispute was following the terms set out in that contract, which lead to mediation, and related to clauses allowing the company to claim additional costs. As a result, revenue from the contract would be booked in the next financial year.

"It's a learning curve," he said of the way the shares were punished. "I regret we had to make the announcement" but the company had an obligation to go the market as soon as it became clear it wouldn't meet forecasts, he said.

Docking confirmed that the Financial Markets Authority has questioned the company over its disclosures, which it had expected would happen. He wasn't overly concerned about the regulator's interest.

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 Docking sold $63 million of existing shares along with $36 million of new capital used to repay debt and IPO costs. While the company immediately briefed analysts, executives avoided public comment until today's statement.

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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news