Menu
Gentrack reports first half loss as revenues fall

Gentrack reports first half loss as revenues fall

Company forecasts a better second half, despite COVID-19 impacts

Credit: Supplied

New Zealand utilities and airports software vendor Gentrack Group has reported revenues of $50.6 million for the half year to 31 March, down 7 per cent  on the same half of 2019.

EBITDA of $4.3 million was down 78 per cent and the company recorded a loss of $12.8 million after impairments. 

Underlying earnings, without those impairments, delivered a loss of $1 million.

The decline in revenue reflected the loss of a number of UK customers due to supplier failure or acquisition, and a drop in non-recurring revenue in the UK and Australia, Gentrack said.

The Auckland-based company is, like many others, negotiating a shift to s SaaS revenue model.

Profitability was eroded by an increase in costs of $6.2 million over the prior year, principally people costs in the UK. 

This was addressed with a headcount reduction in February/March, which would benefit the second half.

Gentrack booked an impairment $10.7 million of goodwill and intangible assets in passenger tracking unit Blip, which it acquired in April 2017 and $1.5 million on previously capitalised utility software following the rationalisation of its product range in the UK. 

Blip has been significantly impacted by the COVID-19 global airport shut down, with the timing of a recovery remaining uncertain. 

The unit has now been fully integrated into the Veovo business and Gentrack said it continued to see significant opportunities in passenger tracking and prediction at airports and railway stations.

Notwithstanding the loss, the group achieved $8.6 million operating cashflow for the period, finishing with $6.4 million net cash, up $1.8 million.

Both utilities and airports revenues were down on the prior year, however new energy and water billing and assurance projects commenced in the UK, and Veovo started projects at Luton Airport and Swedavia, Sweden’s Aviation Authority.

The COVID-19 pandemic had no material impact on the group’s operations for the first half. However, the economic downturn has now had an impact on its airport and utility customers, and the company is seeing some projects delayed and postponed in the second half. 

Notwithstanding, Gentrack said it expected to deliver a second half EBITDA result ahead of the first half, and to remain cash flow positive.


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 gentrackutilities softwareVeoveo

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
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