Digital Gets a Boost in 2021 NZ Budget- 5 Related Stocks

COVID-19 has accelerated digital trends and led to a surge in e-commerce. Moving on to the path of digital transformation, the New Zealand government has announced a new digital training, advising, and support program to help small companies take advantage of e-commerce prospects.

One of the major challenges faced by SMEs in the wake of COVID-19 was a lack of knowledge and tools to compete in a digitally advanced environment. The NZ government has announced its plans to invest $44 million over the next 2 years in a digital skills programme in the Budget 2021.

Source: © Alexandersikov | Megapixl.com

The program will offer digital skills training to nearly 60,000 small businesses, 20,000 trainees currently in the program; advisory services to assess needs and create action plans for 30,000 small businesses.

DO READ: Would New Zealand’s SMEs Gain From Budget 2021?

The NZ government is also planning to give a preliminary funding lump sum of NZ$10 million, with NZ$11 million further allocated over 4 years under a program aimed at facilitating digital research through obtaining core network infrastructure for the research and education sector.

Let’s have a look at how these 5 NZX stocks are performing-

Geo Limited (NZX: GEO)

Geo recently declared Mr Roger Sharp (non-executive chairman and a member of the board) has decided to resign from his post as the chairman before the November annual meeting of the company.

On 24 May, at the time of writing, GEO was trading at $0.126, up 5%.

Serko Limited (NZX:SKOASX:SKO)

Serko’s business was impacted amid COVID-19 due to reduced domestic and nearly no foreign travel. However, the group experienced improved reservations from Australasian business by the end of the year.

ALSO READ: Why Is The Budget 2021 A Crucial One?

Serko reported a 52% drop in income from NZ$ 25.9 million to NZ$12.4 million in FY21 with a 63% drop in the overall number of trip bookings.

On 24 May, at the time of writing, SKO was trading at $6.63, up 2%.

Gentrack Group Limited (NZX:GTK, ASX:GTK)

Gentrack expects revenue to be around $100.5 million in FY21 while EBITDA is likely to be around $5 million for the year. The net cashflow is also likely to be optimistic in FY21, building on $16.8 million of net cash reported at 30 September 2020.

DO READ: New Zealand Predicts Slump In House Price Growth. 5 Related NZX stocks

On 24 May, at the time of writing, GTK was trading flat at $1.65.

Enprise Group Limited (NZX:ENS)

The Group recently announced that Datagate Innovation (Enprise’s investee) has hired a US non-executive Director Eric Hernaez, who has invested $165,000 for 75,000 shares.

Enprise also came under price enquiry by NZRegCo. The share price of ENS had experienced a 18.18% rise from the period of 29 April to 4 May 2021.

On 24 May, at the time of writing, ENS was trading flat at $1.69.

EROAD Limited (NZX:ERD)

In its quarterly release for the quarter ended 31 March 2021, EROAD exhibited consistent and steady growth across its markets. The fact that the Company sold 2,726 contracted units over the time reflected this.

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EROAD’s asset retention rate was over 95% and the company was confident of achieving the guidance for FY21 and FY22, which was earlier provided in November 2020.      

On 24 May, at the time of writing, ERD was trading at $5.49, down 0.18%.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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