GTK
06/08/2014 12:46
FORECAST
REL: 1246 HRS Gentrack Group Limited
FORECAST: GTK: Forecast
6 August 2014
Gentrack Update on Profit Guidance of 1 August 2014
On 1 August 2014, Gentrack Group Limited (Gentrack) announced that its
financial results to 30 September 2014 are likely to be lower than were
forecast in Gentrack's prospectus dated 4 June 2014. The announcement stated
that this was primarily due to:
- a delayed go-live on a major project where a dispute has recently arisen
between Gentrack and the customer on the payment for the extra effort
required from Gentrack to complete the project, which Gentrack expects to be
subject to mediation; and
- a delay in signing a substantial upgrade contract with an existing
customer, which is still expected to be signed by the financial year end.
Following media and third party commentary since Gentrack's release on 1
August 2014, Gentrack wishes to provide the following additional details:
- in each case the customers involved are large utility customers with whom
Gentrack has long standing relationships and expects to do significant
additional work with in the future;
- in the case of the disputed payment, Gentrack continues to work with the
customer towards a successful system implementation and fully expects to have
an ongoing long term productive relationship with this customer; and
- in the case of the delay, Gentrack is already working on the project in a
limited capacity under an existing contract while the final legal details of
a new contract (to reflect the enhanced level of work to be undertaken) are
being agreed.
The facts and circumstances that led the Board to conclude that the FY14
forecasts should be revised down have arisen recently, after Gentrack was
listed on the NZX and ASX. The likely financial impact of those changed
circumstances was established very shortly before the release to the market
on 1 August.
The details surrounding these issues are commercially sensitive and
confidential between Gentrack and the relevant customer. The Gentrack Board
considers that it is in Gentrack's, and therefore its shareholders, best
interests to work towards resolving the dispute, and signing the delayed
contract, on a confidential basis and will continue to do so.
Chairman John Clifford says "The Gentrack Board deeply regrets the fact that
it has to revise its FY14 forecast downwards so soon after listing on the NZX
and ASX. Gentrack remains a highly profitable business with excellent
software solutions and a wide utility and airport customer base."
The Directors do not envisage any change to either the forecast dividend of
$2.6m to be paid in December 2014 or the outlook for FY2015, which remains as
forecast in the Prospectus.
Contact:
John Clifford - Chairman
James Docking - CEO
+64 9 966 6090
About Gentrack:
Auckland-based Gentrack is a developer of specialist software for energy
utilities, water companies and airports around the world. It employs 200
people in offices in Auckland, Melbourne, London and Brisbane, and services
more than 150 utility and airport sites in globally.
Gentrack is comprised of two leading software products - Gentrack Velocity
and Airport 20/20. Gentrack Velocity is a specialist billing and CRM product
designed for Energy utilities and Water companies. Airport 20/20 is a
comprehensive Airport Management System engineered to optimise an airport's
operations and enhance the passenger experience.
End CA:00253548 For:GTK Type:FORECAST Time:2014-08-06 12:46:47
