Friday 04 November 2016 01:42 PM
Gentrack annual earnings rise 16%, beating guidance
By Paul McBeth
Nov. 4 (BusinessDesk) - Gentrack Group, the utilities software developer, said annual earnings rose 16 percent, beating guidance and shrugging off the impact of a strong kiwi dollar dragging on its export receipts.
The Auckland-based company said earnings before interest, tax, depreciation and amortisation were about $16.7 million in the 12 months ended Sept. 30, ahead of the $15 million ebitda forecast provided at its half-year update, and up from $14.5 million in the 2015 financial year. Revenue rose about 25 percent to $52.7 million and net profit was up 3 percent to $9.6 million.
"I am pleased to report that Gentrack's strong performance in the first half of this financial year has continued through to the second half, resulting in an improved outlook for revenues and operating performance this year," chief executive Ian Black said in a statement. "Operating results have been impacted negatively by the strength of the New Zealand dollar against other currencies."
Gentrack had anticipated revenue to gain 20 percent on an annual basis when it posted its interim result in May, with new customers in the UK driving up sales for the software developer.
The company will release its final results on Nov. 24 once the statements are finalised and audited.
Last year Gentrack replaced its chief executive James Docking with Black, a former Oracle and SAP executive, who took the role in January.
The shares rose 2.6 percent to $3.50, having gained 36 percent so far this year. The stock was punished after releasing a major profit warning six weeks after listing but has recovered since September last year and is now trading above its 2014 initial public offering price of $2.40.