Wed 29 Nov 2017

Gentrack Revenue and Profit up 43%

Gentrack Group Limited (NZX/ASX: GTK), a market leader in software solutions for utilities and airports, announces its annual financial results for the year to 30 September 2017.

Highlights (NZ$)
• Revenue $75.2m and EBITDA1 $23.9m: both up 43% on FY16
• NPAT $11.8m: up 23% on FY16
• Final Dividend: 8.5cps, bringing full year dividend to 12.7cps.

Gentrack delivered strong and cash generative organic growth in the year to 30 September 2017, with revenue and EBITDA both up 43% on prior year. Excluding the mid-year acquisitions of Junifer Systems, Blip Systems and CA Plus, organic revenue growth was 18% with EBITDA up 24%.

A full year dividend of 8.5cps has been declared taking the Full Year Dividend to 12.7cps, up 6.7% on FY16. This represents a total payout of $10.2m and 71% of NPATA.

Ian Black, CEO said, “The results follow an intensive year of strategic acquisitions and business integration effort that will enable us to build on the continuous growth since the IPO, and to deliver an increased performance rate across the global utilities and airports businesses. Both businesses experienced 40%+ revenue growth over prior year and recurring revenues from annual fees and support services were up 43%.”

Over FY17, we’ve successfully added 12 new utility customers with our Velocity and Junifer products and 9 new airports deployed products from our suite of airports solutions, delivering licence revenues up 74% on FY16 and 18% organic revenue growth at improved operating margins.

“The acquisition of Junifer Systems makes us a market leader in the UK with a combined 36 utility customers. It also gives us a SaaS billing and customer management product and subscription based revenue model well suited to new entrant and smaller utilities in contestable energy markets in Australia and New Zealand.

“In Airports, the acquisitions of Blip Systems and CA Plus on top of our existing Airport 20/20 business, gives us a unique set of revenue, operations and passenger experience capabilities and we are already seeing success in cross selling and combining these businesses and technologies.

“We are beginning to see clear benefits of the ongoing investment to productise our utility software, so that it can be installed faster by fewer people, which allows us to scale the business more rapidly and efficiently and to offer subscription based solutions. We expect to see this strategy continue to lift margins over time.

“It has also been a busy year for recruitment with resources up 55% across the group and acquisitions delivering a 250% growth in UK/Europe based resources. We welcomed a number of new experienced senior executives to the Group in New Zealand, the UK, Australia and we recently completed the relocation of the Auckland team to new global headquarters. Singapore was also chosen for our newest international office, enabling the business to service customers and ongoing business development activities across South East Asia.”

The Group targets 15%+ EBITDA growth in FY18 as it continues to optimise the value from the recent strategic growth acquisitions, a shift to productised offerings, and the expansion of resource expertise to support larger and more profitable projects.

The results are based on unaudited financial statements. Audited financial statements will be released on 30 November 2017.

All figures are presented in NZ$.

Annual Financial Results – Audio
The audio recording from Gentrack’s annual financial results briefing for the year ended 30 September 2017 is now available under Investor Presentations on the Gentrack Investor Centre at:
https://www.gentrack.com/investors/reports-and-presentations/

ENDS