Gentrack Group (ASX:GTK) has delivered impressive revenue growth for the year ending 30 September 2024, with group revenue rising 25.5% from $169.9m in 2023 to $213.2m. This was driven by strong demand across its utilities and airport management software segments, bolstered by new customer wins and upgrades.
However, cost pressures tempered the overall results. EBITDA remained flat at $23.6m, weighed down by higher costs associated with Long-Term Incentive (LTI) share schemes and increased investment in research and development. These factors also contributed to a decline in net profit after tax to $9.5m, down from $10.0m in FY23. The company reported earnings per share (EPS) of 5.8 cents, compared to 6.2 cents in the prior year.
Gentrack, headquartered in Auckland, New Zealand, and dual-listed on the NZX, provides software solutions for utilities and airports. Its utilities segment delivers technology for energy and water retailers to optimise operations, while its Veovo division offers airport management solutions to enhance passenger experiences and operational efficiency. The company serves clients in over 140 airports globally and has been a key player in supporting the transition to net-zero emissions.
Revenue from the utilities segment increased 22.6% to $181.3m, with underlying growth reaching 51% after adjusting for lost revenue from insolvent customers. Meanwhile, Gentrack’s airport management division, Veovo, recorded a 45.5% surge in revenue to $31.9m, supported by significant contracts in Saudi Arabia and the UK.
Chief Executive Officer Gary Miles praised the company’s progress, stating, “We continue to modernise critical industries, helping clients achieve operational excellence and sustainability goals.”
Gentrack opted not to declare a dividend, choosing instead to reinvest its $66.7m in cash reserves into growth initiatives, including ongoing rollouts of its g2.0 technology platform.