Gentrack Group’s (ASX: GTK) share price remained virtually unchanged going into lunch after the dual-listed NZ provider of software to airports and energy retailers reported that its half-year net loss widened to $NZ5.8m on revenue up 12% to $NZ57.1m for the six months to March 31.
Gentrack guided to revenues for FY22 of around $115m, versus FY21 revenues of $105.7m, with earnings expected to be in low single-digits.
Earnings fell to $NZ1.2m, versus $NZ5.8m in the previous corresponding period
Net cash of $NZ16.5m versus $NZ26m as at September last year
Cash position of $16.5m versus $26.0m at September 2021
No interim dividend to be paid
Despite the turmoil in the UK Energy market – where 12 customers have moved into insolvency over the last 18 months - revenue was driven higher by a 15.2% increase in the utilities business to $48.9m for the half year from new customer wins and growth from existing customers.
Revenue was also slightly down in Veovo’s Airports business by $0.3m to $8.2m due to the industry downturn.
UK turmoil aside, management attributes significantly lower earnings to an increased investment in strategic R&D and in sales & marketing.
Management also noted that the programs for product investment and business development are positioning the company well for the accelerating industry transformation.
While around half of Gentrack’s revenue is from retailers selling electricity directly to the public - where price issues exist - the rest of Gentrack’s utilities division is in good shape.
The Australia and NZ business, which comprises around 39% of the utilities revenue continues to grow. Overall revenue per project delivery rose 7% in the year to September, while the cost of providing that service fell 3%.
Gentrack share price movement over three months.
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