ERD - EROAD Limited

[System]

EROAD Limited is a leading transport technology and services company that has created an electronic solution to manage and pay Road User Charges (RUC), support regulatory compliance and provide value-added commercial services to the heavy vehicle industry.

EROAD generates Recurring Revenue from charging customers for its services and also receives revenue from hardware sales of Ehubos, as well as other sources. In 2009, EROAD implemented the world's first network-wide GPS/cellular-based road user charging system, which modernised the existing paper-based RUC regime in New Zealand.

EROAD has become the largest electronic RUC agent in New Zealand, achieving an annualised RUC collection rate of over $219 million.The EROAD system consists of a secure electronic distance recorder (Ehubo), combined with a bank-grade payment gateway and services portal.

The Company undertakes design and manufacture of their Ehubos, as well as software development, from their headquarters in Auckland. EROAD has created a cost effective and scalable solution based on cloud architecture, web processes and partnerships with global infrastructure providers.

EROAD's successful New Zealand reference site provided it with the opportunity to enter the international market. In April 2014 ERD commercially launched in Oregon, becoming the first approved electronic Weight-Mile Tax (WMT) service provider in North America. EROAD has also entered the Australian market with a commercial services offering, appealing to commercial transport fleets that require a highly available and secure platform.

It is anticipated that ERD will list on the ASX during September 2020.

https://www.eroad.co.nz

 

[peter2]

ERD shows a promising start to it's ASX listing.

 

[kenny]

Looks like an interesting sleeper @peter2

Very little analyst coverage. A quiet achiever that will only benefit from more investor awareness.

The hardware component to the services is a concern but currently valued on modest revenue multiples.

From the HY report released 26/11/2020;


EROAD released its financial results for the first half of the 2021 financial year.

Key highlights:

• Revenue continued to grow to $45.8m, up 19% from H1 FY20 and 7% from H2 FY20 reflecting growth across all regions

• EBITDA of $15.3m was up 29% from H1 FY20 and flat on H2 FY20 reflecting accelerated R&D and spend-to-save initiatives

• EROAD grew contracted units by 5,705, while keeping ARPU and asset retention stable in the six months despite challenging macro-economic conditions

• Launched EROAD Day Logbook, EROAD Go and EROAD Clarity Dashcam which will support future growth

• EROAD listed on the ASX as a Foreign Exempt Listing and raised $53m to accelerate growth strategies

“EROAD delivered a 19% increase in Revenue and 29% improvement in EBITDA period-on-period. In a period of extreme uncertainty and operating restrictions across our markets, the continued growth in contracted units, stable SaaS Average Revenue Per Unit and asset retention rate is reflective of EROAD’s strong customer value proposition.” said Steven Newman, Chief Executive Officer.

H2 FY21 and FY22 Outlook

Looking ahead to the second half of the financial year, EROAD is anticipating a small increase in revenue compared to the first half. EBITDA is anticipated to be similar to the first half’s figure (adjusted for one-off items) reflecting the acceleration of product development and increased sales and marketing costs associated with the launches of key products.

For FY22, EROAD anticipates that the percentage revenue growth in FY22 will strengthen, but not be at the level experienced in FY20. As EROAD continues to accelerate new product delivery for future growth in FY23 and FY24, it anticipates spending 24-27% of revenue on R&D during FY22. However, the company anticipates EBITDA margin to be maintained but improving at the end of FY22, to provide further increased EBITDA margin.

See the links below for more details:

Market Release H1 FY21

Results Announcement H1 FY21

Investor Presentation H1 FY21

Interim Report H1 FY21

Source: EROAD Limited

 

[peter2]

Bought today's new high (BO-NH) on ERD. There's very little on the ask and very low volume traded each day.
It's a sleeper as @kenny said.

 

[Dona Ferentes]

EROAD receives unsolicited, non-binding indicative proposal

EROAD Limited (NZX:ERD, ASX:ERD) advises that it has today received an unsolicited, non-binding indicative proposal from Brillian APAC Pty Ltd, part of the Volaris Group. The Volaris Group is an operating group of Toronto Stock Exchange-listed Constellation Software Inc. (TSX:CSU).

The NBIO from Volaris is seeking to acquire 100% of EROAD’s shares at a proposed price of $1.30 per share in cash noting its preferred approach is by way of a scheme of arrangement.

up 65 per cent, today, though you'd hardly notice.

Roadkill

 

[peter2]

WTF! Eroad management rejects 1.30 takeover offer now raises capital at huge discount (0.70). Last traded at 1.275.

 

[divs4ever]

WTF! Eroad management rejects 1.30 takeover offer now raises capital at huge discount (0.70). Last traded at 1.275.

hmmmm !

somewhere near 70 cents ( in the near future )

maybe i should do some research on this , investing it NZ stocks has it's quirks but there are some gems despite the lack of franking

cheers !