“Underlying revenue growth delivered for 1H24 [excluding the involvement customer impact] was an impressive 58 per cent,” Craigs analyst Joshua Dale said. Overall it was a “very strong result,” Dale said.
Net profit fell by a third to $5.3m, ebitda was down 23 per cent to $12.3m - with the firm again highlighting that its first-half 2023 result included one-offs from involved UK water customers.
No dividend was paid, in keeping with Gentrack’s historic approach.
It remains debt-free.
The firm finished the half with net cash down 6.2 per cent. $39.3m following a $12.9m investment in Amber Electric in February as part of a $29m Series C round for the Aussie startup, which numbers Tesla among its partners. Gentrack and Amber will collaborate on software for managing home solar and EV batteries and selling surplus power back to the grid.
Gentrack’s first-half result includes its share (10 per cent) of Amber’s business. The partnership is non-exclusive.
Turning on the waterworks
Chief executive Gary Miles railed against the former Government for Gentrack missing out on Three Waters contracts (which went to multinationals), despite its strong offshore record. Today, his firm highlighted local wins, including Mercury’s switch to Gentrack from the multinational SAP, plus a November contract win to upgrade Genesis Energy systems in a project that will run through to 2025.
No new water utility contracts were announced this morning, but Miles saw a fresh chance to crack the local market with the post-Three Waters rejig.
“We are particularly excited to engage with New Zealand water authorities to bring modern systems to the aging water infrastructure of the country,” he said.
“The legacy systems at the heart of the water networks are simply not capable to value water effectively, digitally engage with customers and local communities and to deal with the data led networks required for efficient and safe water management.”
Guidance raised
The Auckland-based NZX and ASX-listed firm has raised its full-year operating earnings guidance to $23.5m-26.5m from the previous $20.5m-25.5m.
And full-year revenue guidance - already bumped from $157m-160m to $170m, has been increased again, this time to $200m.
Gentrack’s software for managing baggage systems, check-ins and other systems is now installed at 160 airports worldwide, with new AI features being piloted at Auckland Airport and several European airports. In the first half, it signed three new airports in the UK (including Stansted and Manchester), with upgrade projects underway at Gatwick and Sydney Airport, among others. The firm also expanded its nascent Saudi business during the period, with its first Middle East office opening in Riyadh.
A focus major airports was paying off, Miles said.
In utilities, the Genesis upgrade project is one of several based on Gentrack’s AWS cloud-based “g2.0″ product, which sees the firm combining forces with Salesforce’s Energy and Utility Cloud.
Shares closed Friday at $7.96. The stock is up 133 per cent over the past year, making it one of the NZX’s top performers.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
