Gentrack sinks deeper into red as Covid-19 hits revenue

Gentracks annual result took a hit from Covid-19 disruption. Photo / NZ Herald

Covid-19 related writedowns took utilities software specialist Gentrack deeper into the red over the September year.

The company, which specialises in software for utilities and airports, recorded a net loss of $31.7 million for the year, compared with a $3.3m loss in the previous year.

The shortfall included an impairment charge of $34.5m, mostly related to goodwill impairments in its Blip Systems and utilities businesses, reflecting uncertainty in the outlook.

The financial impact of Covid-19 on Gentrack had been felt through a reduction in expected revenue, as customers delayed projects.

"Pleasingly our utilities customers in the second half of 2020 have displayed resilience to the impacts of Covid-19 and continue to interact with Gentrack on largely normal terms," the company said.

"However, the longer-term implications of Covid-19 are still somewhat uncertain particularly for the airport business where our customers have been severely impacted," it said.

Gentrack said it would not pay a final dividend.

In today's result, revenue came to $100.5m - down 10 per cent on the previous year's.

Chief executive Gary Miles, who was appointed in October, said the results reflected a tough year for Gentrack's utilities and airports customers.

"Pleasingly the revenue mix and shift in annual recurring revenues is positive," Miles said.

"We see opportunities in our markets and our strong net cash position sets us up to accelerate our technology investment and lead the industry as it transforms to the cloud and clean technologies," he said.

The company expects to get closer to breakeven in the current financial year.