Gentrack Group Limited Analysis

Overview

Gentrack has an extensive history of developing, implementing and supporting its specialist software for energy utilities, water companies and airports. Established in 1989, Gentrack now has over 150 utilities and airports using its software, including some of the most innovative utilities companies in Australasia and the UK, and Tier 1 airports around the world.

Active involvement in deregulating energy markets, reforming water markets and rapidly evolving airport businesses has created unprecedented demand for Gentrack's software solutions and professional services. As a result our global presence is growing rapidly, now with offices worldwide including Melbourne, Brisbane, London, and Auckland.

Gentrack is a dynamic company thriving on a diverse and energised company culture. With proven solutions and a low risk approach to implementation we continue to demonstrate our commitment to on-time and on-budget projects. Backed by a team with local industry expertise, and the right AGILITY, ABILITY and ATTITUDE, we continue to deliver where our competitors can't.

Performance

The following information was extracted from Gentrack Group Limited's half year results, released on 19 May 2025:

Results Summary

• Revenue: $112m – up 9.8% on H1 24, with the Group’s recurring revenues 16.7% higher at $76.4m.
• EBITDA: $13m – up 5.1% on H1 24 as we invest more in sales and g2.0. For the full year we expect EBITDA to grow faster than revenue.
• Statutory NPAT: $7.2m profit – up 34.7% on H1 24.
• Cash: $70.7m v $39.3m at H1 24 and $4m higher since the start of the year.

Financial performance

For the Group, revenues increased 9.8% over the prior period to $112m. In our Utilities business, total revenue grew by 7.2% to $92.8m. Our recurring revenues grew strongly, by 17% as prior periods wins and upgrades flowed through into recurring revenue. This uplift was partially offset by lower nonrecurring revenues (12% lower than in H1 24), a reflection of the high level of project work last year and the variable nature of such revenues. We continue to expect strong levels of non-recurring revenues going forward.

Revenues at Veovo grew by 24% over the prior period to $19.2m. This was driven by customer wins last year in the UK and the Middle East and from upgrades in APAC. Growth includes both higher recurring revenues, (up 14% over H1 24) alongside more project work (non-recurring revenues were 34% higher than H1 24). Our non-recurring revenues included $3.6m ($3.8m in H1 24) of revenue from sales of hardware sourced from our supplier network.

EBITDA at $13m was 5.1% higher than H1 24. We are investing more into our Product (all expensed) including landing our first deployment of g2.0 in Genesis Energy. We have also increased investment into sales to support the high levels of activity we are seeing in our current pipeline.

Our NPAT of $7.2m is an increase of 34.7% over the prior period ($5.3m in H1 24). This increase in profits includes a $1.1m loss being our share (10%) of the losses of Amber Energy (we account for our investment in Amber as an associate company in our financial statements). Also excluded from EBITDA but within our NPAT, when we consolidate intercompany balances we benefit from $2.1m of foreign exchange gains arising from the appreciation of some of the currencies, principally Sterling, used by subsidiary companies, within the Group.

The Group’s tax charge fell by 33.7% against the prior period to $1.9m in spite of the 10.4% increase in profit before tax to $9.1m. Our effective income tax rate of 21.3% is lower than the statutory rates of our main operating companies and far lower than the 35.5% effective rate booked in the prior year. This low tax charge mainly reflects the tax relief received from the vesting of share-based payments in the half year.