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Gentrack lifts first-half profit 23%

NZ NewswireNZ Newswire 25/05/2016 Paul McBeth

Gentrack Group lifted first-half profit 23 per cent as sales from its UK division jumped with the signing of new customers and the software developer says annual revenue will climb at a faster pace than previously signalled.

Net profit rose to $3.8 million, or 5 cents per share, in the six months ended March 31 from $3.2 million, or 4 cents, a year earlier, the Auckland-based company said in a statement.

Revenue climbed 26 per cent to $23.3 million with sales from its UK division up 80 per cent, outpacing a 16 per cent lift in Australian sales and 13 per cent rise in New Zealand revenue.

Gentrack expects revenue to rise at a 20 per cent pace this financial year, more than the 10 per cent-plus increase flagged at last year's annual meeting and is predicting earnings before interest, depreciation and amortisation to be about $15 million in the year ending June 30, up from $14.5 million in 2015.

In presentation slides accompanying the release, the company said it was still "confident of long-term growth driven by Australian and UK market opportunities and structural reforms in power and water sectors" and "continue to explore acquisition opportunities."

The board declared an interim dividend of 4.2 cents per share, payable on June 21 with a June 10 record date, up from 4.1 cents

The shares last traded at $2.65 and have gained 6 per cent so far this year.

The stock was punished after releasing a major profit warning six weeks after listing but has recovered since September last year and is now trading above its 2014 initial public offering price of $2.40.

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