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GTK - Gentrack Group

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Gentrack Group Limited (GTK) develops, implements and supports its specialist software for energy utilities, water companies and airports. Established in 1989, Gentrack now has over 150 utilities and airports using its software.

http://www.gentrack.com
apparently GTK is looking for turnaround after a disappointing result.
Any one following this ?
DNH
My posting is 4 years after it was entered first.
 

bigdog

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ASX Announcement today
22/11/2019 9:25:55 AM FY19 Result Update and FY20 Outlook

upload_2019-11-22_11-6-9.png


GTK expects to post revenue of NZ$112 million for the 12 months ended September 30. This will be an increase of 7.2% on its revenue of NZ$104.5 million it recorded in FY 2018.

GTK expects EBITDA for FY 2019 to be marginally below its guidance range of between NZ$25 million and NZ$26 million. This implies a year on year decline of at least 19%

upload_2019-11-22_11-2-52.png


don't hold

525
 

Dona Ferentes

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the suspension of guidance in March 2020 was the final nail in the coffin, last bit of the jigsaw, that had seen GTK drop from high $6 range in 2018 to under $1.00 in April 2020.

Recent updates have seen some recovery in the stock price.
January 2021 update (stabilising)
• FY21 revenues are expected to be close to or slightly ahead of FY20 revenues of $100.5m
• FY21 EBITDA is expected to be around $5m on the basis that research and development (R&D) costs are expensed
• Incremental R&D costs are expected to be ~$3m/quarter from Q3 FY21
• The company expects to be net cashflow positive in FY21, building on the $16.8m of net cash reported at 30th September 2020
.

May 2021 Half Yearly (turning around)
Performance is improving, cash is strong and the business is functioning in a much more efficient and impactful way. Delivery and throughput have accelerated and the leadership team is working well together.
• Overall revenue is up which is a result of us effectively repositioning Gentrack with our customers as the go to partner for innovation and cleantech.
• The turnaround will take time to complete but is continuing at pace. We see material room for further operational improvement.
• We have headwinds from customer attrition from prior year losses and continued SoLRs. We have however, moved the business back to growth despite this revenue drag.


Share registry is changing with rotation of fund managers. Now $200 million M/C / shares at $1.88

.........................
Update / Edit. Just read their presentation. It's software, yup, but I have no idea what they do.
 
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wow , i was surprised to see a recent post on this

i was hoping the share price would drop lower so i could add some more ( i reduced during that peak you mentioned )

in simple terms .. software to utility companies ( including some airports ) think of them as the NZ rival to HSN ( i hold HSN as well )
 

bigdog

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My tip for 2022

GTK – GENTRACK

GTK provides customer information software to energy, gas, and water utility companies. It is billing software, a critical component in ensuring utility companies get paid.

GTK was a $6 a share company in 2018, before raising money for an acquisition.

Around 50% of GTK’s revenue is exposed to the UK, where a succession of negative events have knocked the company’s share price. These events include a new regulatory price cap introduced in 2018, which squeezed GTK’s margins earned from wholesale energy markets.
 

Dona Ferentes

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the suspension of guidance in March 2020 was the final nail in the coffin, last bit of the jigsaw, that had seen GTK drop from high $6 range in 2018 to under $1.00 in April 2020.

Recent updates have seen some recovery in the stock price.
and a houseview from Naos (mid Dec), which has a significant (for NSC) holding in GTK. Has risen to around $2.00 by start of 2022.

Market cap around $200 million

"Without a doubt the most notable event for the month came from one of our more recent portfolio additions, Gentrack Group, as they released their FY21 results. In our view we believe the result was a significant positive step in reaching, and potentially exceeding, their FY24 targets. In our view, there were three key highlights to the result. Firstly, the number of new business wins in both the utility and airports divisions arguably exceeded management’s expectations and has led to stronger revenue growth in the short term. This is also clear vindication that the GTK software and service offering is highly competitive and has improved significantly in a short period of time under the stewardship of a new management team. Secondly, the working capital management was excellent with few if any bad debts, which has resulted in GTK sitting on a very healthy net cash balance sheet. Finally, disclosure has also improved which has allowed current and potential investors to make more objective and rational decisions about the businesses outlook.

"Even though GTK was able to upgrade guidance just a month ago and deliver a result that arguably surpassed this upgraded guidance, the stock price remains at the same level as it was in May 2021, so sentiment remains negative towards the business. We appreciate there remains significant risks associated with an investment in GTK such as the current issues within the UK energy market and associated potential client losses, as well as the headwinds from a tight labour market particularly in technology related roles. However, we believe these risks are offset by two key points. Firstly, the growth potential that exists in the business which could come from new Tier-1 customer wins, traction in their managed service offering, geographic expansion, M&A or further traction in adjacent industries such as water utilities. These points were not spoken about at length in the FY21 results presentation, yet in our view one or two of them are significant near-term opportunities for GTK.
 
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Although not released to the ASX, Gentrack Group (ASX: GTK) released a PR statement that they had won a contract from
one of Singapore’s largest and most established energy generators and retailers as part of a consortium which includes
Accenture and Smart Energy Water. Although the contract is not material in its own right, we view this as another tick for
management’s strategy to not only reinvest into GTK’s systems to maintain their current client base, but also expand into
new geographies and potentially adjacent market opportunities.

lifted from the NSC ( a ASX-listed LIC ) monthly report ( the current one )

( DYOR )

i hold GTK ( 'free-carried )

although recent GTK metrics are pretty crappy ( no divs for about 3 years to boot )

DIVIDEND TYPE DIVIDEND AMOUNT ($) FRANKED EX-DIV DATE PAY DATE
Final 0.029 8.00% 06/12/2019 18/12/2019
Interim 0.047 8.00% 06/06/2019 14/06/2019
Final 0.082 8.00% 12/12/2018 21/12/2018
Interim 0.047 8.00% 15/06/2018 25/06/2018
Final 0.078 8.00% 12/12/2017 20/12/2017
Interim 0.040 0.00% 13/06/2017 27/06/2017
Final 0.074 0.00% 08/12/2016 16/12/2016
Interim 0.040 8.00% 09/06/2016 21/06/2016
Final 0.067 21.00% 08/12/2015 18/12/2015
Interim 0.037 26.00% 10/06/2015 19/06/2015
Final 0.034 34.00% 09/12/2014 19/12/2014

am currently down about 2% on this and will watch in case there is a top-up opportunity ( i will NOT be buying above $1.20 more likely closer to $1 )
 
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