Thu 26 May 2016

Gentrack Delivers Strong Growth in 6 Months to 31 March 2016

Gentrack Group Limited (GTK), a market leader in software solutions for utilities and airports, today released its interim financial results to 31 March 2016.

Highlights
• Revenue $23.3m – up 26% on prior year H1
• EBITDA $6.7m – up 23%
• NPAT $3.8m – up 21%
• Interim Dividend of 4.2cps declared

Gentrack performed well in the first half of fiscal 2016. Revenue was $23.3m, with EBITDA1 of $6.7m and NPAT of $3.8m. This compares to prior year H1 revenue of $18.5m, EBITDA of $5.5m and NPAT of $3.2m.

Growth was across the business with a 29% increase in software licences, a 35% increase in services and an 11% increase in recurring fees. In our growth markets in the UK and Australia revenue was up 80% and 16% respectively.

Gentrack continued with its planned investment in products, people and capability with headcount increasing by 13 to 230 at 31 March, with further significant investment in people and systems planned in the second half.

Cash generation remains strong and an interim FY16 dividend of 4.2cps is declared, up from a 4.1cps interim dividend last year.

The Airports division completed the installation of its software at Sydney Airport while signing new deals with Cleveland Hopkins International Airport in the United States, and Isavia, which operates Iceland’s 14 airports. Airports had a strong 6 months with revenue growing 36%.

The larger Utilities division also had a strong performance, with revenue growing 24%. New deals were signed in April with Good Energy in the United Kingdom and Fiji Electricity.

Based on the current sales pipeline and continuing strong project revenues, which always carry inherent timing risk, the company expects to achieve around 20% revenue growth for the fiscal 2016 year. With the continued investment in people and systems to support long term growth, it is expected that EBITDA will be around $15m.

All figures are presented in NZ$.

1 EBITDA is a non-GAAP profit measure that in the opinion of Gentrack’s directors, best reflects the financial performance of the business. It is defined and reconciled to GAAP profit on page 3 of this release.