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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news