Reseller News

​ Gentrack revenue and earnings both surge 43%

Acquisitions deliver strategic SaaS capabilities and cross-selling opportunities, NZX-listed company tells shareholders.
Gentrack sees cross selling opportunities in its airport management product portfoliio.

Gentrack sees cross selling opportunities in its airport management product portfoliio.

Utilities and airport management software company Gentrack has reported $75.2 million in revenue for the year to 30 September, up 43 per cent.

Earnings moved up in tandem, also up 43 per cent to $23.9 million, while after tax profit grew 23 per cent to $11.8 million.

Excluding the mid-year acquisitions of Junifer Systems, Blip Systems and CA Plus, organic revenue growth was 18 per cent and EBITDA 24 per cent. 

Gentrack will pay a final dividend of 8.5 cents per share, bringing its full year dividend to 12.7cps, totalling $10.2 million or 71 per cent of after tax profit.

“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," Gentrack CEO Ian Black said.

Over the year, Gentrack added 12 new utility customers for its Velocity and Junifer products and nine new airports deployed Gentrack products.

That delivered licence revenues up 74 per cent on 2016 and 18 per cent 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," Black said.

"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."

The Blip Systems and CA Plus acquisitions on top of Gentrack's existing Airport 20/20 business delivered what the company described as "a unique set of revenue, operations and passenger experience capabilities" plus cross-selling opportunities.

“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," Black said.

The group, which opened a new office in Singapore this year, told investors it is targeting 15 per cent plus EBITDA growth in F2018.

Audited financial statements will be released on 30 November.