Gentrack lifts first-half profit as UK sales jump
Net profit rose to $3.8 million, or 5c per share, in the six months ended March 31.
Gentrack Group [NZX: GTK] lifted first-half profit 23% as sales from its UK division jumped after signing new customers and predicts annual revenue will climb faster than previously signalled.
Net profit rose to $3.8 million, or 5c per share, in the six months ended March 31 from $3.2 million, or 4c, a year earlier, the Auckland-based company says in a statement. Revenue climbed 26% to $23.3 million with sales from its UK division up 80%, outpacing a 16% lift in Australian sales and 13% rise in New Zealand revenue.
Gentrack expects revenue to rise at a 20% pace this financial year, more than the 10%+ increase flagged at last year's annual meeting and predicts earnings before interest, depreciation and amortisation to be about $15 million in the year ending June 30, up from $14.5 million in 2015.
In presentation slides accompanying the release, the company says it is "confident of long-term growth driven by Australian and UK market opportunities and structural reforms in power and water sectors" and "continues to explore acquisition opportunities."
The board declared an interim dividend of 4.2c per share, payable on June 21 with a June 10 record date, up from 4.1c a year earlier.
In 2015, Gentrack replaced its chief executive James Docking with a former Oracle and SAP executive Ian Black, who started with the software firm in January.
The shares last traded at $2.65 and have gained 6% 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 now trades above its 2014 initial public offering price of $2.40.
Paul McBeth
Thu, 26 May 2016
Thu, 26 May 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Gentrack lifts first-half profit as UK sales jump
58525