Menu
EROAD moves into profit on surging sales

EROAD moves into profit on surging sales

EROAD logs a small net profit on record sales of $51.5 million as contracted units surge

EROAD is making inroads into the US fleet management systems market.

EROAD is making inroads into the US fleet management systems market.

Auckland-based fleet management systems developer EROAD is now profitable after reporting a 57 per cent increase in sales in its 2018 financial year.

NZX-listed EROAD reported record growth of contracted units in Australia, New Zealand and North American markets of 61.5 per cent to boost sales revenue of $51.5 million.

EBITDA lifted to $15 million and net returns after tax to a slim $0.2 million profit compared with a loss in 2017 of $5.5 million.

EROAD cited major growth in its enterprise customer base including Downer Group, Waste Management, Fulton Hogan and food distributor Bidfood.

The company also raised $21.5 million of new capital; $6 million through a share purchase plan for existing shareholders and $15.5 million through an equity placement to existing and new institutional shareholders.

Record sales growth of 191 per cent in North America now means that EROAD has a credible beachhead in this market, the company told shareholders today. Sales in North America exceeded ANZ for the first time in the third quarter of the year.

"We have begun planning for our next phase of growth in North America, which may involve deeper strategic partnerships, and have engaged First NZ Capital to help us with this work,” EROAD chairman Michael Bushby said.

Managing that customer growth proved to be extremely challenging, EROAD said. The company is continuing to implement improvements arising from that experience to ensure sustainable ongoing growth at scale.

However, the company maintained a high customer retention rate of 98 per cent and the proportion of customers renting EROAD’s hardware, rather than purchasing hardware outright, during the year was 90 per cent.

Future contracted income (FCI) reached $92.8 million in 2018, up from $59.9 million last year, driven by the high number of contracts for renewal, a high renewal rate and strong sales growth.

EROAD CEO Steven Newman said the North American business was close to cash flow break-even on a monthly basis.

The company said it had developed the first tethered in-cab electronic logging device (ELD) system to be registered with the US Federal Motor Carriers Safety Administration and the first independently verified ELD to be launched to the North American market.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags softwarelogisticsNZXfleet managementEROAD

Events

Brand Post

Featured

Slideshows

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments