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Gentrack expects first-half sales to rise

NZN 23/02/2017 Paul McBeth

Gentrack expects first-half sales to rise about a fifth as a number of projects came on stream in the period, making up for any headwinds from a strong New Zealand dollar.

The utilities software developer told shareholders at Thursday's annual meeting in Auckland first half sales will be about 20 per cent higher than the $18.5 million it reported in 2016, "with multiple projects going live" and offsetting "currency headwinds", according to presentation slides filed to the NZX.

Auckland-based Gentrack expects its earnings before interest, tax, depreciation and amortisation margin to be 30 per cent, implying ebitda is projected to be $6.7m in the six months ending March 31.

The slides show Gentrack may benefit from airport investment, with the company's new software focusing on automating, simplifying, and making easier day-to-day operations.

The company will continue with a strategy of focusing on its existing profitable markets and consider acquisitions in airport and utility market with debt funding of up to 1.5 times ebtida.

Gentrack shares rose 0.9 per cent to $3.35, and have gained 59 per cent over the past 12 months.

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