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Highlights
- Gentrack Group provided a market update before its results are out in November.
- The Company is anticipating strong revenues and improved EBITDA in the annual results.
- Gentrack Group gives an insight into one of its major markets- the UK energy market.
Gentrack Group Limited (NZX:GTK) (ASX:GTK), the Company that offers state-of-the-art software solutions to airports and other clients, announced in a market update FY21 trading particulars before the anticipated yearly results, for the period till 30 September 2021, which shall be made public on 25 November 2021.
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Gentrack’s business has fared well so far
According to an update, the second-half FY21 revenue has been higher than expectations across different utilities, indicating that the strategy being used so far for revenue growth has been feasible.
The strategy has further been feasible in keeping the current customers happy besides offering innovation and business expansion opportunities for new leads.
All three aspects have been covered well by the Company at the moment.
Expectations from upcoming results
The expected full-year revenue is nearly NZ$105 million, which is a little more than what was being expected previously, (which was NZ$100.5 million).
The EBITDA, on the other hand, is expected to be about NZ$12 million as compared to the NZ$10 million expected earlier.
This is as a result of the slower R&D spend than expected, the increasing revenue and the current conditions of the labour market globally.
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The UK Market
Speaking especially about the UK energy market, which is one of the major target audiences of Gentrack, the Company revealed that two customers had entered the supplier of last resort mechanism, and with robust attention given to the management of working capital, the Company didn’t have any material exposure to the above-mentioned customers.
It further said that the Company’s business, which is diversified in categories like B2C, B2B, various water territories and geographies, are all differently impacted by the changing conditions of the market. B2B energy customers in the UK aren’t as affected by the prevailing market conditions because the price cap doesn’t seem to apply here.
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The Company also stated that after this recent Forecast update for FY22, there is an increase expected in group revenues as compared to FY21, keeping in mind previously offered headwinds, as well as a substantial additional reserve, for SOLRs.
On 30 September 2021, the stock was trading at NZ$1.830, skyrocketing by 18.83%, at the time of writing.
Bottom Line
With sumptuous predictions made, all eyes are now on Gentrack’s annual results, which will be released soon.
