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

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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