The Gentrack Group Ltd (ASX: GTK) share price is now up 87% over the past year after the software business recently posted some strong revenue and profit growth for the six-month period ending March 31 2017.
For the period the New Zealand-based company delivered a net profit of NZ$5.6 million on revenues of NZ$28.9 million, with the revenue and profit up 46% and 24% respectively over the prior corresponding half year.
The company sells billing and customer management software to utilities companies or airports and has been growing through a mix of acquisitions and organic client wins.
As a consequence it its forecasting EBITDA (operating income) growth of around 20% (excluding one off acquisition costs) over its financial year 2017.
According to Commsec the firm’s market value is now around $400 million and it has a prototype to emulate in the $700 million software business Hansen Technologies Limited (ASX: HSN).
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Motley Fool contributor Tom Richardson has no position in any stocks mentioned. The Motley Fool Australia owns shares of Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.