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ERoad Q4 result 'broadly' to expectations

NZ Newswire logoNZ Newswire 5/01/2017 By Sophie Boot

ERoad, the logistics and fleet management company, says its total contracted units at the end of 2016 were "broadly in line" with expectations, with a 5.1 per cent lift from a quarter earlier.

As at December 31, the Auckland-based company had 45,657 total contracted units, it said in a statement after trading closed on Thursday.

Units in its established markets of Australia and New Zealand rose 4.8 per cent to 39,964, while units in its commercial market of the US rose 7.4 per cent to 5693.

When announcing its first-half results at the end of November last year, ERoad said it expected strong growth in New Zealand, whereas the US would be modest until there was greater acceptance of electronic logging device compliance.

The volume of distance recorder units contracted to ERoad customers in North America increased 68 per cent to 5301 in the six months to September, and rose 35 per cent to 38,129 in Australia and New Zealand.

In the first half of the previous year, the number of units contracted rose more than 300 per cent in North America, and 47 per cent in Australia and New Zealand.

The shares last traded at $1.60, up 0.6 per cent on Thursday before the release.

The shares first publicly traded at $3.32 in August 2014 after being sold to investors at $3 apiece, and lost 29 per cent of their value in the past 12 months.

In October, chairman Michael Bushby said the board didn't think the share price, then at a record low of $1.45, reflected the underlying value of the business.

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