Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site.

Gentrack Reports Profit Decline In FY19 Result

Technology business Gentrack (ASX:GTK) has reported its result for the year to 30 September 2019. 

Technology business Gentrack (ASX: GTK) has reported its result for the year to 30 September 2019.

Gentrack provides billing and other types of software for essential service organisations such as energy businesses, water utilities and airports. It has offices in New Zealand, Australia, the UK, Singapore, USA and Europe. It provides services for over 220 utility and airport sites in more than 30 countries. One of its main customers is Sydney Airport Holdings Ltd (ASX: SYD).

Gentrack’s FY19 Result

Gentrack reported that revenue grew by 7% to $111.7 million (all amounts stated are in New Zealand dollars). Recurring revenue increased by 22% to $78.2 million.

The company said there has been a continued transition to software as a service (‘SaaS’) on all new utilities business and now recurring revenue accounts for 70% of total revenue. Non-recurring revenue from project services and licences falling 24%.

Despite the ongoing Brexit issues, Gentrack reported that the UK business achieved 36% revenue growth with four new energy energy customers, a water utility customer and three new Evolve Projects.

However, debt provisions of $2.4 million mainly relating to UK utilities customers (and investing in people and R&D) caused underlying EBITDA to fall 20% to $24.8 million (click here to learn what EBITDA means).

Net profit dropped to a $3.3 million loss after a $14.6 impairment of CA+ intangibles and goodwill. However, adjusted net profit still fell by 31% to $9.6 million – which excludes accounting charges relating to the impairment.

Gentrack Dividend

The Gentrack Board has decided to pay a final dividend of 3 cents per share, bringing the full year dividend to 8 cents per share. This was a 42% decrease compared to FY18.

Gentrack Outlook

Gentrack’s airport business, Veovo, added Mexico City, Luton and Buenos Aires as new customers in FY19. It also deployed its largest ever airports solution at Orlando.

The company has also achieved a leading market position in the UK energy market with 6.3 million meters billed using its solution.

However, with continuing uncertainty in the core UK market, Gentrack is expecting the FY20 result to be in line with FY19.

[ls_content_block id=”14947″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content