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

 


Gentrack secures delayed contract, shares rise to month high

Gentrack secures delayed contract, shares rise to month high

By Suze Metherell

Sep. 1 (BusinessDesk) - Gentrack Group, the airport and utility software developer, has resolved the delayed contract upgrade with a customer which, in part, caused it to cut its prospectus full-year profit forecast barely six weeks after the company listed on the NZX. The shares gained.

The contract upgrade, with an unnamed "Australian-based energy utility company" will be signed at the end of this month, the Auckland-based company said in a statement. A month ago today, Gentrack flagged full-year profit could fall as much as 32 percent below its May prospectus because of a delay in a contract upgrade and a pay dispute with another customer.

“We are very pleased that this long-standing customer has chosen to upgrade its existing Gentrack solution and look forward to delivering the latest functionality that Gentrack Velocity software offers,” chief executive James Docking said. It didn't say what effect this would have on its earnings outlook.

At the start of August the company said profit in the 12 months ended Sept. 30 is now expected to be $2.5 million to $2.8 million, below the $3.7 million forecast in a prospectus first published on May 26. Sales would be between $38.1 to $38.5 million, missing the prospectus forecast by as much as 6.2 percent.

The company also today announced a new contract for an implementation of its latest utility billing and customer relationship management system with the Water Authority of Fiji, in line with its strategy to build its market position in the Pacific Islands.

Shares of Gentrack rose 2.2 percent to $2.30, its highest since the profit warning, when it was smacked down to below its $2.40 offer price. The stock surged in its NZX debut in late June, and touched a high of $2.71, after an offer which saw 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 listing costs. After the sale, existing investors held about 43.2 percent of Gentrack.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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