Shares in software provider Gentrack Group Ltd (ASX: GTK) moved 1.5% higher after it reported its financial results for the year ending September 30 2017 today.
Below is a summary of the results with comparisons to relevant prior corresponding periods. All figures in NZ dollars.
- Revenue of $75.2m, up 43%
- Organic revenue growth of 28%
- EBITDA $23.9m, up 43%
- Organic EBITDA growth of 24%
- Net profit $11.8m, up 23%
- Final dividend of 8.5 cents per share
- Total dividends 12.7 cents per share
- Completed acquisitions of Juniper Systems, Blip Systems and CA Plus over the year
Gentrack provides software services in the billing space to airports and utilities meaning it has some attractive qualities of recurring revenues and good profit margins, while having the opportunity to grow its top-line quickly via new sales deals.
The market has recognised this over the past year in sending the shares 66% higher despite the company issuing more than NZ$40 million in new equity over the year to help fund the acquisitions.
Over the year the group signed-up 12 new utility and 9 new airport customers and it continues to operate in large globally addressable markets.
Outlook
The group is targeting 15%+ EBITDA (operating income) growth in fiscal 2018 and retains a solid outlook based on its underlying economics and potential growth runway. The NZ scrip offers a 1.9% trailing yield in selling for NZ$6.60 and sells for more than 40x trailing earnings. As such the group will need to deliver on its growth forecasts to justify today's valuation.
