Excluding the write-down, Gentrack said its adjusted net profit of $4.6 million for the six months ended March 31 was 45 per cent lower than the same period the year before.
Revenue increased 5 per cent to $54.4 million, but earnings before interest, tax, depreciation and amortisation were down 19 per cent at $12.8 million. Gentrack said that was consistent with its earlier guidance.
Gentrack provides software to more than 220 utilities and airports in 30 countries. It gets just over half its revenue in the UK.
It says the slower revenue growth than previous years reflects the firm's shift toward more software as a service sales and some deferred customer projects. Costs were also higher due to investment in SaaS solutions.
Gentrack said, notwithstanding Brexit-related disruption in the UK and electricity price regulation introduced there in January, revenue there increased 7 per cent.
Revenue in Australia, the company's second-largest market, fell 27 per cent due to no large projects being completed in the half.
Revenue was up 7 per cent in New Zealand at $6.1 million, and more than doubled to $7.5 million in other markets – largely due to ongoing airports projects in the US and Europe.
Across utilities, revenue was little changed at $42.3 million, but earnings were down 23 per cent at $10.1 million. Revenue at the firm's Veovo airports business climbed 25 per cent to $12.1 million, while earnings there lifted to $2.7 million.
Gentrack says it expects a strong second-half with full-year operating earnings expected to be "marginally" ahead of last year.
That said, investment behaviour remains cautious in the UK, due to Brexit and power regulation, and fewer new players are entering the energy sector.
Regulation in Australia and the introduction of default market rates there has created investment uncertainty there, Gentrack says.
The company will pay a 5 cent dividend, unchanged from a year ago, on June 14 to investors registered one week earlier.
The shares fell 2 per cent to $5.47, and are up 8.5 per cent so far this year.
- BusinessDesk