Annual Results for the Year Ended 30 September 2023
Gentrack Group Ltd
17 Hargreaves Street, St Marys Bay Auckland 1011,
PO Box 3288, Auckland 1140, New Zealand
Ph: +64 9 966 6090
Email: info@gentrack.com
www.gentrack.com
Gentrack Group Ltd | ARBN 169 195 751
Results for announcement to the market
Name of issuer Gentrack Group Limited
Reporting Period 12 months to 30 September 2023
Previous Reporting Period
NZD
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$169,884 34.5%
Total Revenue $169,884 34.5%
Net profit/(loss) from
continuing operations
$10,046 N/A
Total net profit/(loss) $10,046 N/A
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend payable
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.45 $0.23
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to the market
announcement, financial statements, and investor presentation
attached
Authority for this announcement
Name of person
authorised
to make this announcement
Kerry Nickels
Contact person for this
announcement
Kerry Nickels
Contact phone number +64 9 966 6090
Contact email address kerry.nickels@gentrack.com
Date of release through MAP
28 /11/2023
A
udited financial statements accompany this announcement.
12 months to 30 September 2022
---
Gentrack Group Ltd
17 Hargreaves Street, St Marys Bay Auckland 1011,
PO Box 3288, Auckland 1140, New Zealand
Ph: +64 9 966 6090
Email: info@gentrack.com
www.gentrack.com
Gentrack Group Ltd | ARBN 169 195 751
28 November 2023
Market Announcement
Gentrack Group Limited (NZX/ASX: GTK), a leading provider of software solutions for
utilities and airports, today released its results for the full-year to 30 September 2023.
Results Summary
• Revenue: $169.9m – up 34.5% on FY22
• EBITDA: $23.2m – up $15.1m over FY22
• Statutory NPAT: $10.0m profit v $3.3m loss in FY22
• Cash: $49.2m – up $21.8m over FY22
• No dividend payable
• Results include $27.6m of one-off revenues, but strong underlying growth
means that FY24 revenue guidance has been upgraded to c. $170m (from
previous guidance of $157m to $160m for FY24) and FY24 EBITDA is now
expected to be between $20.5m and $25.5m.
Gentrack has delivered impressive growth in revenue, EBITDA and cash in the 2023
financial year (FY23). We continue to win new customers, including our first contract
signing in the Middle East as well as delivering against recent wins and expanding
services with existing customers. We have strong net people growth with staff turnover
during the year at an all-time low, and at the same time our employees are highly
engaged and recommending Gentrack as a great place to work. Finally, we are proud
to be working with the leaders in the sectors we serve to help them innovate and move
to sustainable solutions.
Financial performance
Strong revenue results were driven by a 36.7% increase in the Utilities business to
$147.9m for the year. Our underlying growth in the Utilities business excluding
insolvencies was up by 47% over FY22.
Bulb and other UK insolvencies represented $27.6m of FY23 revenue and we do not
expect further revenue from these customers in FY24. We believe that the historical
occurrence of supplier insolvencies in the UK B2C energy sector is no longer a material
threat to our customer base as many of the weaker players have exited and the UK
regulator has instituted a more business friendly regulatory approach.
The Veovo airports business also grew strongly, with revenue up 21.3% to $21.9m with
growth in both recurring revenues, up 15.8% and non-recurring revenues up 32.9%
over FY22.
EBITDA performance was $23.2m, $15.1m higher than FY22. EBITDA growth has
been achieved whilst continuing to invest in strategic R&D, all of which has been
expensed during the year, and increasing our sales & marketing spend to support
international expansion.
2
We received $1.6m in R&D tax credits during the year, reducing our UK tax liability.
We do not include this within EBITDA as this is a tax credit, but we do disclose it
separately from our tax charge in our accounts as “other income”.
With strong cash conversion from EBITDA, net cash at 30 September 2023 was
$49.2m, an increase of $21.8m over the end of the last financial year.
As a result of this strong financial performance, FY23 marks a return to an NPAT profit
of $10.0m against an NPAT loss made in the prior year.
Gentrack’s Utilities and Veovo businesses both operate in markets with strong growth
potential. The Board continues to believe that the best use of the company’s capital
is to continue to invest in growth. We have therefore decided not to pay a dividend
for FY23. We will continue to keep the use of capital under review.
The underlying growth in both Utilities and Veovo means we are able to upgrade our
revenue guidance for FY24 to be at least in line with the FY23's revenue at c. $170m,
despite the loss of ‘one off’ revenues of $27.6m from insolvent UK customers. Against
this higher revenue guidance, EBITDA is expected to be between $20.5m and
$25.5m.
Growing our energy and water customers in our core markets
Our underlying growth in Utilities is a result of doing more with both new and existing
energy customers in the markets we serve.
In November 2023 we were pleased to announce that Genesis Energy has selected
our new g2.0 solution with Salesforce’s Energy and Utility Cloud embedded. The g2.0
solution will enable Genesis to service customers digitally across industrial,
commercial and residential segments bringing a wide range of innovative products to
market. Genesis’s decision to choose Gentrack’s g2.0 platform to modernise their
business is a strong vote of confidence in our product investment strategy. It
demonstrates the value customers get from transforming their business with g2.0. For
Gentrack it creates the opportunity to sell this market leading product to new
customers looking to modernise away from legacy systems, as well as to upsell it to
our existing customer base.
EnergyAustralia went live in March with Gentrack to launch its innovative, ground-
breaking product ‘Solar Home Bundle’ on our distributed energy management
solution. They have migrated their existing Solar Home Bundle customers to Gentrack,
an integrated solution including digital consumer engagement, field services
management and automation, and a Virtual Power Plant (VPP) solution. This exciting
solution is at the forefront of how people worldwide will generate and consume
energy in the future.
In New Zealand we completed the Mercury B2C migration from SAP to Gentrack on
the back of Mercury’s acquisition of Trustpower in 2022. The platform delivers a lower
cost to serve and better business agility for multi play bundles across energy and
communications services and great digital experiences for its customers.
In the UK, we have added three more customers (two existing customers and one new
to Gentrack) to our Managed Services offering where we help customers deliver
improvements in their operational excellence and cost to serve.
3
We support, through leading water retailers, more than 50% of the UK’s businesses
with water solutions. During the year we completed the migration of Scottish Water
Business Stream’s 200k+ business customers from three legacy systems to our cloud-
based solution. In Australia we are working to migrate recent contract wins across to
our platform and in Fiji, we have now agreed with one of our existing customers, the
Water Authority of Fiji, to modernise their platform and transform their business.
The above are just some examples of how we work closely with leaders in our core
markets to modernise their business and help them meet sustainability and cost
targets. We continue to do more and more with our leading customer base and add
new logos.
Targeting international expansion for Utilities
In November 2022 we announced our plan to expand our international footprint,
beyond our core markets of the UK, Australia, and New Zealand.
During the year, we opened an office in Singapore, and have grown the local team
there to both support the migration to our platform at one of Singapore’s energy
retailers (customer win in 2022) and to target new business in the wider Southeast
Asian region. We are making good progress building a qualified pipeline across
several countries in the region.
We have built our European business development team, based from our London
office and are pleased with our business development across Europe.
This year we established our Middle Eastern regional hub in Saudi Arabia and are
delighted to have booked our first Utilities contract win there in October 2023,
covering both energy and water customers. This win, where we will be working
alongside SalesForce, demonstrates the strength of this relationship, an essential part
of our g2.0 platform.
To support growth in both our core markets and in new markets we have invested in
building out our centre of engineering excellence in India. We opened our Pune office
in November 2022, and we now have over 100 people there.
4
Growing our airport customers
The aviation recovery has gone from strength to strength this year. Many airports are
at or near to pre-pandemic passenger travel levels, driving a strong demand for digital
transformation that can bring improved passenger experiences and better
operational experience. For Veovo this has meant new tier 1 and 2 customers in the
Middle East and Europe; strong demand for upgrades to our latest platforms for Aero-
Billing and Airport Operations across all regions; and expansion opportunities for
Passenger Flow solutions at several of our major airport customers. We believe that
these contract wins combined with the strong pipeline we have built over that last year
in Veovo will set us up for another year of vibrant growth in FY24.
Looking Forward
Our first customer migration to g2.0 and our first wins in the Middle East in both the
Utilities and Veovo businesses are important strategic milestones. We continue to
build our pipeline in Southeast Asia and EMEA and to sell new products to new and
existing customers.
We are excited about the transformation required by the industries that we serve, and
the opportunity that represents for Gentrack. For airports, we are seeing pent-up
demand being unleashed in modernisation programs which are now following
through into contract wins and upgrades. For utilities, no other market requires the
level of modernisation that the IT systems in both the energy and water markets
require. Our new g2.0 solution is now established. We have the delivery track record
to make customer transformations successful, and we have positioned Gentrack as a
leader in innovation. It is an exciting time to be in these dynamic markets.
We’d like to thank our customers and shareholders for their continued support and
the entire Gentrack team for their achievements this year and for their commitment to
Gentrack’s future.
Guidance
The strong underlying growth in both Utilities and Veovo means we are able to
upgrade our revenue guidance for FY24, from the prior guidance of being between
$157m to $160m to being at least in line with FY23 revenue at c.$170m despite the
loss of ‘one off’ revenues of $27.6m from insolvent UK customers. Against this higher
revenue guidance, EBITDA is expected to be between $20.5m and $25.5m (12%-
15%). This compares to our previous guidance which would have given a range of
between c. $19m and $27m.
5
Presentation Results
Investors are invited to join the presentation of the Half Year Results on Tuesday 28
th
November 2023 at 10.30am NZT/ 8.30am AEST via webcast:
www.virtualmeeting.co.nz/gtkfy23.
It is advised that attendees allow ten minutes prior to the start time to register and
download any necessary webcast software. To join via audio only, please see details
here: https://gentrack.com/full-year-results-briefing-2023
ENDS
Contact details regarding this announcement:
Kerry Nickels – Company Secretary
+64 9 966 6090
About Gentrack
We are entering a new era, with utilities worldwide transforming to meet business and
sustainability targets. For over 35 years Gentrack has been partnering with the world’s
leading utilities, and more than 60 energy and water companies rely on us.
Gentrack, with our partners Salesforce and AWS, are leading todays transformation
with g2.0, an end-to-end product-to-profit solution. Using low code / no code, and
composable technology. G2.0 allows utilities to launch new propositions in days,
reduce cost-to-serve and lead in total experience. https://www.gentrack.com
---
Gentrack Group Limited
Financial
Statements
For the year ended 30 September 2023
GENTRACK FINANCIAL STATEMENTS / 2
Contents
3 Management Commentary
6 Auditor’s Report
10 Directors’ Responsibility Statement
11 Financial Statements
12 Statement of Comprehensive Income
13 Statement of Financial Position
14 Statement of Changes in Equity
15 Statement of Cash Flows
16 Notes to the Financial Statements
45 Corporate Directory
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 3
Gentrack has delivered impressive growth in
revenue, EBITDA and cash in the 2023 financial
year (FY23). We continue to win new customers,
including our first contract signing in the Middle
East as well as delivering against recent wins and
expanding services with existing customers. We
have strong net people growth with staff
turnover during the year at an all-time low, and
at the same time our employees are highly
engaged and recommending Gentrack as a
great place to work. Finally, we are proud to be
working with the leaders in the sectors we serve
to help them innovate and move to sustainable
solutions.
Financial performance
Strong revenue results were driven by a 36.7%
increase in the Utilities business to $147.9m for
the year. Our underlying growth in the Utilities
business excluding insolvencies was up by 47%
over FY22.
Bulb and other UK insolvencies represented
$27.6m of FY23 revenue and we do not expect
further revenue from these customers in FY24.
We believe that the historical occurrence of
supplier insolvencies in the UK B2C energy
sector is no longer a material threat to our
customer base as many of the weaker players
have exited and the UK regulator has instituted a
more business friendly regulatory approach.
The Veovo airports business also grew strongly,
with revenue up 21.3% to $21.9m with growth in
both recurring revenues, up 15.8% and non-
recurring revenues up 32.9% over FY22.
EBITDA performance was $23.2m, $15.1m
higher than FY22. EBITDA growth has been
achieved whilst continuing to invest in strategic
R&D, all of which has been expensed during the
year, and increasing our sales & marketing
spend to support international expansion.
We received $1.6m in R&D tax credits during the
year, reducing our UK tax liability. We do not
include this within EBITDA as this is a tax credit,
but we do disclose it separately from our tax
charge in our accounts as “other income”.
With strong cash conversion from EBITDA, net
cash at 30 September 2023 was $49.2m, an
increase of $21.8m over the end of the last
financial year.
As a result of this strong financial performance,
FY23 marks a return to an NPAT profit of $10.0m
against an NPAT loss made in the prior year.
Gentrack’s Utilities and Veovo businesses both
operate in markets with strong growth potential.
The Board continues to believe that the best use
of the company’s capital is to continue to invest
in growth. We have therefore decided not to pay
a dividend for FY23. We will continue to keep
the use of capital under review.
The underlying growth in both Utilities and
Veovo means we are able to upgrade our
revenue guidance for FY24 to be at least in line
with the FY23's revenue at c. $170m, despite the
loss of ‘one off’ revenues of $27.6m from
insolvent UK customers. Against this higher
revenue guidance, EBITDA is expected to be
between $20.5m and $25.5m.
Growing our energy and water customers in
our core markets
Our underlying growth in Utilities is a result of
doing more with both new and existing energy
customers in the markets we serve.
In November 2023 we were pleased to
announce that Genesis Energy has selected our
• Revenue: $169.9m – up 34.5% on FY22
• EBITDA: $ 23.2m – up $15.1m over FY22
• Statutory NPAT: $10.0m profit v $3.3m loss in FY22
• Cash: $49.2m – up $21.8m over FY22
• No dividend payable
• Results include $27.6m of one-off revenues, but strong underlying
growth means that FY24 revenue guidance has been upgraded to c.
$170m (from previous guidance of $157m to $160m for FY24)
and
FY24 EBITDA is now expected to be between $20.5m and $25.5m.
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 4
new g2.0 solution with Salesforce’s Energy and
Utility Cloud embedded. The g2.0 solution will
enable Genesis to service customers digitally
across industrial, commercial and residential
segments bringing a wide range of innovative
products to market. Genesis’s decision to
choose Gentrack’s g2.0 platform to modernise
their business is a strong vote of confidence in
our product investment strategy. It demonstrates
the value customers get from transforming their
business with g2.0. For Gentrack it creates the
opportunity to sell this market leading product
to new customers looking to modernise away
from legacy systems, as well as to upsell it to our
existing customer base.
EnergyAustralia went live in March with Gentrack
to launch its innovative, ground-breaking
product ‘Solar Home Bundle’ on our distributed
energy management solution. They have
migrated their existing Solar Home Bundle
customers to Gentrack, an integrated solution
including digital consumer engagement, field
services management and automation, and a
Virtual Power Plant (VPP) solution. This exciting
solution is at the forefront of how people
worldwide will generate and consume energy in
the future.
In New Zealand we completed the Mercury B2C
migration from SAP to Gentrack on the back of
Mercury’s acquisition of Trustpower in 2022. The
platform delivers a lower cost to serve and better
business agility for multi play bundles across
energy and communications services and great
digital experiences for its customers.
In the UK, we have added three more customers
(two existing customers and one new to
Gentrack) to our Managed Services offering
where we help customers deliver improvements
in their operational excellence and cost to serve.
We support, through leading water retailers,
more than 50% of the UK’s businesses with water
solutions. During the year we completed the
migration of Scottish Water Business Stream’s
200k+ business customers from three legacy
systems to our cloud-based solution. In Australia
we are working to migrate recent contract wins
across to our platform and in Fiji, we have now
agreed with one of our existing customers, the
Water Authority of Fiji, to modernise their
platform and transform their business.
The above are just some examples of how we
work closely with leaders in our core markets to
modernise their business and help them meet
sustainability and cost targets. We continue to
do more and more with our leading customer
base and add new logos.
Targeting international expansion for Utilities
In November 2022 we announced our plan to
expand our international footprint, beyond our
core markets of the UK, Australia, and New
Zealand.
During the year, we opened an office in
Singapore, and have grown the local team there
to both support the migration to our platform at
one of Singapore’s energy retailers (customer
win in 2022) and to target new business in the
wider Southeast Asian region. We are making
good progress building a qualified pipeline
across several countries in the region.
We have built our European business
development team, based from our London
office and are pleased with our business
development across Europe.
This year we established our Middle Eastern
regional hub in Saudi Arabia and are delighted
to have booked our first Utilities contract win
there in October 2023, covering both energy
and water customers. This win, where we will be
working alongside SalesForce, demonstrates the
strength of this relationship, an essential part of
our g2.0 platform.
To support growth in both our core markets and
in new markets we have invested in building out
our centre of engineering excellence in India.
We opened our Pune office in November 2022,
and we now have over 100 people there.
Growing our airport customers
The aviation recovery has gone from strength to
strength this year. Many airports are at or near to
pre-pandemic passenger travel levels, driving a
strong demand for digital transformation that
can bring improved passenger experiences and
better operational experience. For Veovo this
has meant new tier 1 and 2 customers in the
Middle East and Europe; strong demand for
upgrades to our latest platforms for Aero-Billing
and Airport Operations across all regions; and
expansion opportunities for Passenger Flow
solutions at several of our major airport
customers. We believe that these contract wins
combined with the strong pipeline we have built
over that last year in Veovo will set us up for
another year of vibrant growth in FY24.
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 5
Looking Forward
Our first customer migration to g2.0 and our first
wins in the Middle East in both the Utilities and
Veovo businesses are important strategic
milestones. We continue to build our pipeline in
Southeast Asia and EMEA and to sell new
products to new and existing customers.
We are excited about the transformation
required by the industries that we serve, and the
opportunity that represents for Gentrack. For
airports, we are seeing pent-up demand being
unleashed in modernisation programs which are
now following through into contract wins and
upgrades. For utilities, no other market requires
the level of modernisation that the IT systems in
both the energy and water markets require. Our
new g2.0 solution is now established. We have
the delivery track record to make customer
transformations successful, and we have
positioned Gentrack as a leader in innovation. It
is an exciting time to be in these dynamic
markets.
We’d like to thank our customers and
shareholders for their continued support and the
entire Gentrack team for their achievements this
year and for their commitment to Gentrack’s
future.
Andy Green, CBE Gary Miles
Chairman CEO
A member firm of Ernst & Young Global Limited
Independent Auditor’s Report
To the shareholders of Gentrack Group Limited - Report on the audit of the
financial statements
Opinion
We have audited the financial statements of Gentrack Group Limited (the “Company”) and its
subsidiaries (together the “Group”) on pages 11 to 44, which comprise the consolidated statement of
financial position of the Group as at 30 September 2023, and the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended of the Group, and the notes to the consolidated financial
statements including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 11 to 44 present fairly, in all material
respects, the consolidated financial position of the Group as at 30 September 2023 and its
consolidated financial performance and cash flows for the year then ended in accordance with New
Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company’s shareholders,
as a body, for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Ernst & Young provides statutory account filing services to Veovo A/S. Partners and employees of our
firm may deal with the Group on normal terms within the ordinary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
2
A member firm of Ernst & Young Global Limited
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, but we do not provide a separate opinion on these matters. For each matter below,
our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial statements section of the audit report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to respond to our assessment of the risks
of material misstatement of the financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying consolidated financial statements.
Revenue recognition – software implementation
Why significant How our audit addressed the key audit matter
The Group has reported revenues of $170 million.
The accounting for the portion of revenue related
to software implementation projects of $35
million, which is part of the licences and project
services revenue, requires consideration of the
inherent complexities of software implementation
projects and the use of estimation. As a result we
consider this a key audit matter.
Where implementation projects run over more
than one financial year, revenue for the year is
recognised based on their stage of completion
using the proportion of actual hours at the
reporting date compared to management
estimates for total forecast hours.
Accurate recording of this revenue is highly
dependent on:
► Detailed knowledge of individual
characteristics of a contract, including its
unique terms, knowledge of the software
and expected length of time to complete
contractual milestones;
► Ongoing adjustments to estimated hours to
complete implementation taking into
consideration changes in scope, estimated
timing and project delays; and
► Changes to total expected project revenue
for contract variation or additional billing for
changes in scope or additional hours
incurred.
Disclosures in relation to the Group’s revenue are
included in note 3.2 to the consolidated financial
statements.
In obtaining sufficient appropriate audit evidence, we:
► selected a sample of implementation projects
focusing on projects that were in progress at
balance date. For the projects selected, where
relevant, we:
► assessed whether revenue recognised was
consistent with contractual terms and
accounting standard requirements, including
any allocations of contract revenue between
initial license fee, design and implementation,
and maintenance phases of the contracts;
► obtained the project status reports as at 30
September 2023 and considered whether the
project manager had performed a review to
ensure actual hours reflect work performed to
date and forecast hours reflect current
expectations;
► recalculated revenue to date based on actual
hours incurred as a percentage of total
forecast hours to ensure revenue was
recognised in line with the project manager’s
estimate; and
► assessed the forecast hours to complete and
project status through discussion with project
managers and senior management, and
challenged significant changes in total
forecast hours post year end to understand if
these should have been reflected in the
forecast as of the year end
► assessed appropriateness of the deferred revenue
balance at year end by reference to the percentage
of completion of implementation projects; and
► considered the adequacy of the associated
disclosures in the financial statements.
3
A member firm of Ernst & Young Global Limited
Goodwill and Brand intangible assets’ impairment assessment
Why significant How our audit addressed the key audit matter
The Group’s statement of financial position includes $109
million of goodwill and brand assets at 30 September
2023, which make up 44% of the Group’s total assets.
NZ IAS 36 Impairment of Assets requires goodwill and
intangible assets with indefinite useful lives to be tested
for impairment annually irrespective of whether there are
any indicators of impairment. This assessment requires
judgement including consideration of both internal and
external sources of information.
Goodwill and brands are allocated to two cash generating
units (CGUs), being Utilities and Veovo.
In considering whether goodwill and brands were impaired,
the Group estimated the recoverable amount of each CGU
using a discounted cash flow model and key assumptions
as disclosed in note 5.3 of the financial statements.
In obtaining sufficient appropriate audit evidence,
we:
► assessed the Group’s determination of CGUs
based on our understanding of the nature of the
Group’s business units
► engaged our valuation specialists to assess the
conclusions of the Group in relation to
impairment. In doing so they:
identified a set of comparable companies
and determined the EBITDA and Revenue
multiples relevant to their next financial
year; and
considered the range of publicly available
EBITDA and Revenue multiples to the
multiple level which would result in a
different impairment conclusion for each
of the Group’s CGUs
► considered the Group’s next year revenue and
EBITDA forecasts and challenged whether these
and the assumptions used in assessing them fell
within reasonable ranges
► considered the accuracy of previous Group
forecasts for the next financial period to inform
our evaluation of forecasts included in the
impairment models
► performed sensitivity analysis in relation to the
next year forecast revenue and EBITDA to
consider the potential impact of changes in
these assumptions; and
► evaluated the adequacy of the related financial
statement disclosures.
Information other than the financial statements and auditor’s report
The directors of the Company are responsible for the annual report, which includes information other
than the consolidated financial statements and auditor’s report which is expected to be made available
to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained during the audit, or otherwise
appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance and, if uncorrected, to take
4
A member firm of Ernst & Young Global Limited
appropriate action to bring the matter to the attention of users for whom our auditor’s report was
prepared.
Directors’ responsibilities for the financial statements
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand Equivalents to International
Financial Reporting Standards and International Financial Reporting Standards, and for such internal
control as the directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing on
behalf of the entity the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(New Zealand) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is
located at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s
report.
The engagement partner on the audit resulting in this independent auditor’s report is Grant Taylor.
Chartered Accountants
Wellington
27 November 2023
DIRECTORS RESPONSIBILITY STATEMENT
GENTRACK FINANCIAL STATEMENTS / 10
The Directors are required to prepare financial statements for each financial year that present fairly the financial
position of Gentrack Group and its operations and cash flows for that period.
The Directors consider these financial statements have been prepared using accounting policies suitable to Gentrack
Group’s circumstances, which have been consistently applied and supported by reasonable judgements and
estimates, and that all relevant financial reporting and accounting standards have been followed.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any
time, the financial position of Gentrack Group and to enable them to ensure that the financial statements comply with
the Companies Act 1993. They are also responsible for safeguarding the assets of Gentrack Group and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board of Directors of Gentrack Group authorised these financial statements for issue on 27 November 2023.
For and on behalf of the Board of Directors:
Andy Green
Fiona Oliver
Chairman
Date: 27 November 2023
Director
Date: 27 November 2023
GENTRACK FINANCIAL STATEMENTS / 11
Financial
Statements
30 September
2023
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 12
*Disclosure of excess income tax benefit on share-based payments is disclosed under Statement of Changes in Equity.
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
20232022
SECTIONNZ$000NZ$000
Revenue
3.1,3.2
169,884126,299
Expenditure
3.4
(146,692)(118,185)
Profit before depreciation, amortisation, other income,
financing, foreign exchange gain or loss and tax
23,1928,114
Depreciation and amortisation
3.5
(8,451)(10,693)
Profit/(Loss) before other income, financing, foreign exchange
gain or loss and tax
14,741(2,579)
Other Income
3.3
1,574-
Net finance (expense)/income and foreign exchange gain or loss
3.6
(1,290)(878)
Profit/(Loss) before tax15,025(3,457)
Income tax benefit/(expense)
7.1
(4,979)137
Profit/(Loss) attributable to the shareholders of the company10,046(3,320)
OTHER COMPREHENSIVE INCOME*
Other comprehensive income that may be reclassified to profit or
loss in subsequent periods (net of tax):
Translation of international subsidiaries5,056(881)
Total comprehensive profit/(loss) for the period15,102(4,348)
EARNINGS PER SHARE / (LOSS) ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE COMPANY
(EXPRESSED IN DOLLARS PER SHARE)
Basic earnings per share
6.4
$0.10($0.03)
Diluted earnings per share
6.4
$0.10($0.03)
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES ISSUED
Basic
6.4
99,98399,840
Diluted
6.4
103,566102,404
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 13
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
For and on behalf of the Board who authorised these financial statements for issue on 27 November 2023.
Andy Green Fiona Oliver
Chair Director
Date: 27 November 2023 Date: 27 November 2023
20232022
SECTION
NZ$000NZ$000
CURRENT ASSETS
Cash and cash equivalents
4.3
49,18627,387
Trade and other receivables
5.1
37,78929,485
Income tax receivable1232,744
Inventory
5.8
408395
Total current assets87,50660,011
NON-CURRENT ASSETS
Property, plant and equipment
5.5
3,0922,205
Lease assets
9.1
12,6378,560
Goodwill
5.2
109,420106,240
Intangibles
5.4
26,31130,797
Deferred tax assets
7.2
10,6075,478
Total non-current assets162,067153,280
Total assets249,573213,291
CURRENT LIABILITIES
Trade payables and accruals
5.6
8,5916,843
Lease liabilities
9.1
2,2871,675
Contract liabilities13,62212,592
GST payable2,4932,674
Employee entitlements
5.7
19,03314,731
Income tax payable2,748-
Total current liabilities48,77438,515
NON-CURRENT LIABILITIES
Lease liabilities
9.1
15,01811,407
Employee entitlements
5.7
835562
Deferred tax liabilities
7.2
3,5302,899
Total non-current liabilities19,38314,868
Total liabilities68,15753,384
Net assets181,416159,908
EQUITY
Share capital
6.1
196,031194,009
Share-based payment reserve6,1872,877
Foreign currency translation reserve5,965909
Retained earnings(26,767)(37,887)
Total equity181,416159,908
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 14
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2023
NZ$ 000
SECTION
Balance as at 1 October194,0092,877(37,887)909159,908
--10,046-10,046
1,0741,074
Other comprehensive income---5,0565,056
--11,1205,05616,176
TRANSACTION WITH OWNERS
Issue of share capital
6.1, 6.2
2,022(2,022)---
Share-based payments
6.2
5,332--5,332
Balance at 30 September196,0316,187(26,767)5,965181,416
Excess income tax benefit on share-
based payments
RETAINED
EARNINGS
TRANSLATION
RESERVE
TOTAL
EQUITY
Profit attributable to the shareholders
of the company
Total comprehensive income/(loss)
for the period, net of tax
SHARE
CAPITAL
SHARE
BASED
PAYMENT
2022
NZ$ 000SECTION
Balance as at 1 October191,6993,888(34,936)1,790162,441
--(3,320)-(3,320)
(147)(147)
Other comprehensive incom (loss)---(881)(881)
--(3,467)(881)(4,348)
TRANSACTION WITH OWNERS
Issue of share capital
6.1, 6.2
2,310(2,310)-
Accelerated vesting(516)516-
Share-based payments
6.2
1,815--1,815
Balance at 30 September194,0092,877(37,887)909159,908
Loss attributable to the shareholders of
the company
Total comprehensive income for the
period, net of tax
SHARE
CAPITAL
SHARE
BASED
PAYMENT
RETAINED
EARNINGS
TRANSLATION
RESERVE
TOTAL
EQUITY
Excess income tax benefit on share-
based payments
STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 15
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
2023
2022
SECTION
NZ$000NZ$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers165,301118,647
Payments to suppliers and employees
(137,647)(108,557)
Income tax paid(1,735)(4,126)
Net cash inflow from operating activities
25,9195,964
CASH FLOWS FROM INVESTING ACTIVITIES
Ac quisition of property, plant and equipment5.5
(1,958)(986)
Proceeds from sale of property, plant and equipment
-37
Net cash outflow from investing activities
(1,958)(949)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for lease liabilities
9.1(1,634)(2,503)
Lease liability finance charge9.1
(1,069)(732)
Interest paid(37)(614)
Net cash outflow from financing activities
(2,740)
(3,849)
Net increase in cash held21,2211,166
Foreign c urrenc y translation adjustment578264
Cash at beginning of the financ ial period27,38725,957
Closing cash and cash equivalents49,18627,387
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 16
GENERAL INFORMATION ACCOUNTING POLICES CRITICAL JUDGEMENTS
GENERAL INFORMATION
The notes are consolidated into nine sections. Each section contains an introduction and general information
which is indicated by the symbol above. The layout of these financial statements has been streamlined to
present them in a way that is more intuitive for readers to follow. This is achieved by laying out the accounting policies
and critical judgements alongside the notes and focusing information in a way which provides increased clarity and
ease of understanding.
The first section details general information about Gentrack Group and guidance on how to navigate through the
financial statements.
ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out
throughout the document where they are applicable. These policies have been consistently applied to all
the years presented, unless otherwise stated.
Accounting policies are identified by this symbol above.
CRITICAL JUDGEMENTS
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and
expenses. Management bases its judgements and estimates on historical experience and on various other
factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying
values for assets and liabilities that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions and conditions and may materially affect financial results or the
financial position reported in future periods.
Further details of the nature of these critical judgements and estimates may be found throughout the financial
statements as they are applicable and are identified by this symbol.
1. GENERAL INFORMATION
Gentrack Group Limited is a limited liability company, domiciled and incorporated in New Zealand and registered
under the New Zealand Companies Act 1993. The registered office of the Company is 17 Hargreaves Street, St Marys
Bay, Auckland 1011, New Zealand.
The financial statements presented are for Gentrack Group Limited (the parent) and its subsidiaries (Gentrack Group)
for the year ended 30 September 2023. Prior year comparatives are for the year ended 30 September 2022.
The financial statements of Gentrack Group for the year ended 30 September 2023 were authorised for issue in
accordance with a resolution of the directors on 27 November 2023.
Gentrack Group’s principal activity is the development, integration, and support of enterprise billing and customer
management software solutions for the utility (energy and water) and airport industries.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 17
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
This section outlines the legislation and accounting standards which have been followed in the preparation of
the financial statements along with explaining how the information has been consolidated and presented
.
2.1 KEY LEGISLATION AND ACCOUNTING STANDARDS
The financial statements of Gentrack Group have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (NZ GAAP). They comply with the New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards as appropriate to profit-oriented
entities. The financial statements comply with International Financial Reporting Standards (IFRS).
Gentrack Group is a FMC entity for the purposes of the Financial Reporting Act 2013 and Financial Markets Conduct
Act 2013 and is listed on the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX).
The financial statements have been prepared in accordance with the requirements of the Financial Markets Conduct
Act 2013.
2.2 BASIS OF CONSOLIDATION
Subsidiaries are entities over which Gentrack Group has control. Gentrack Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and can affect those returns through its power
over the entity. In assessing control, potential voting rights that currently are exercisable are considered. Subsidiaries
are fully consolidated from the date that control is transferred to Gentrack Group. They are deconsolidated from the
date that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted
by Gentrack Group.
Intra-group balances and any unrealised income and expenses arising from intra-group transactions, are fully
eliminated in preparing the financial statements.
FUNCTIONAL AND PRESENTATION CURRENCY
Items included in the financial statements of each of Gentrack Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (the functional currency). The financial statements are
presented in New Zealand dollars (NZD) which is Gentrack Group’s presentation currency. All financial information
has been presented rounded to the nearest thousand dollars ($000) in the financial statements.
TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the statement of comprehensive income. Foreign exchange gains and losses are presented in the
statement of comprehensive income within net finance expense.
FOREIGN CURRENCY TRANSLATION RESERVE (FCTR)
Gentrack Group translates the results of its foreign operations from their functional currencies to the presentation
currency using the closing exchange rate at balance date for assets and liabilities and the average monthly exchange
rates for income and expenses. The difference arising from the translation of the statement of financial position at the
closing rates and the statement of comprehensive income at the average rates is recorded within the foreign currency
translation reserve within the statement of changes in equity.
2.3 BUSINESS COMBINATIONS
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on
which control is transferred to Gentrack Group. Control is the exposure or right to variable returns from involvement with
the entity and the ability to affect those returns through power over the entity.
Gentrack Group recognises the fair value of all identifiable assets, liabilities, and contingent liabilities of the acquired
business. Goodwill is measured as the excess cost of the acquisition over the recognised assets and liabilities. When
the excess is negative (negative goodwill), the amount is recognised immediately in the statement of comprehensive
income.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 18
2.3 BUSINESS COMBINATIONS (CONTINUED)
Gentrack Group applies the anticipated acquisition method where it has the right and the obligation to purchase any
remaining non-controlling interest (so-called put/call arrangements). Under the anticipated acquisition method, the
interests of the non-controlling shareholder are derecognised when Gentrack Group’s liability relating to the purchase of
its shares is recognised. The recognition of the financial liability implies that the interests subject to the purchase are
deemed to have been acquired already. Therefore, the corresponding interests are presented as already owned by
Gentrack Group even though legally they are still non-controlling interests. The initial measurement of the fair value of the
financial liability recognised by Gentrack Group forms part of the consideration for the acquisition.
Gentrack Group has not made any acquisitions during the year ended 30 September 2023 or 2022. For details of
acquisitions made in prior years refer to the 2018 Annual Report.
2.4 GROUP INFORMATION
The financial statements include the following subsidiaries:
Gentrack Information Systems Technology Company was incorporated in July 2023.
2.5 IMPACT OF STANDARDS ISSUED BUT NOT YET ADOPTED
The External Reporting Board has issued NZ IFRS 17 Insurance Contracts, FRS 44 Disclosure of Fees for Audit Firms’
Services, as well as amendments to existing international accounting standards. Gentrack Group will adopt NZ IFRS
17 and FRS 44 when mandatory and does not expect NZ IFRS 17 and FRS 44 to have a material impact on its financial
statements.
There were no other new effective standards adopted on 1 October 2022 that had a material impact on the financial
statements.
ENTITYPRINCIPAL ACTIVITY
COUNTRY OF
INCORPORATION
SHAREHOLDING
2023
SHAREHOLDING
2022
Gentrack Group Australia Pty LimitedHolding companyAustralia100%100%
Gentrack Pty LimitedSoftware sales and supportAustralia100%
100%
Veovo Holdings (Denmark) ApSHolding companyDenmark
100%100%
Veovo A/S (formally Blip Systems
A/S)
Software development sales
and support
Denmark
100%100%
CA Plus Limited
Software development sales
and support
Malta100%100%
Veovo Group Limited
Holding companyNew Zealand100%100%
Gentrack Limited
Software development sales
and support
New Zealand
100%100%
Gentrack Holdings (UK) LimitedHolding companyUnited Kingdom100%100%
Gentrack UK Limited
Software development sales
and support
United Kingdom100%100%
Junifer Systems LimitedDormant United Kingdom100%100%
Evolve Parent LimitedHolding companyUnited Kingdom100%100%
Evolve Analytics LimitedDormant United Kingdom100%100%
Gentrack Private Software Limited
Software development and
support
India100%100%
Gentrack Information Systems
Technology Company
Software sales and support
Kingdom of Saudi
Arabia
100%N/A
Gentrack (Singapore) Pte LimitedSoftware sales and supportSingapore100%100%
Veovo IncSoftware sales and support
United State of
America
100%
100%
Veovo NZ LimitedSoftware sales and supportNew Zealand100%100%
Veovo UK LimitedSoftware sales and supportUnited Kingdom100%100%
Veovo IP LimitedSoftware developmentNew Zealand100%
100%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 19
3. GROUP PERFORMANCE
This section outlines further details of Gentrack Group’s financial performance by building on the information
presented in the Statement of Comprehensive Income.
3.1 OPERATING SEGMENTS
An operating segment is a component of an entity that engages in business activities from which it may earn revenue
and incur expenses, whose operating results are regularly reviewed by the entity’s Chief Operating Decision Maker to
make decisions about resources to be allocated to the segment and assess its performance, and for which discrete
financial information is available. Operating segments are aggregated for disclosure purposes where they have
similar products and services, production processes, customers, distribution methods and regulatory environments.
Gentrack Group currently operates in two business segments, utility billing software and airport management
software. Consistent with prior years, Gentrack Group’s corporate costs are included in the utility segment.
These segments have been determined based on the reports reviewed by the Board (Chief Operating
Decision Maker) to make strategic decisions.
The assets and liabilities of Gentrack Group are reported to and reviewed by the Chief Operating Decision Maker in
total and are not allocated by business segment. Therefore, operating segment assets and liabilities are not
disclosed
.
(1) Segment contribution is defined as profit before depreciation, amortisation, revaluation of financial liabilities,
impairment of goodwill and intangible assets, financing, and tax.
2023UTILITY
AIRPORT
TOTAL
NZ$000NZ$000
NZ$000
TIMING OF REVENUE RECOGNITION
Point in time
31,5421,990
33,532
Over time116,39519,957
136,352
Total revenue147,93721,947
169,884
Expenditure
(128,403)(18,289)(146,692)
Segment contribution (1)19,5343,658
23,192
2022UTILITYAIRPORTTOTAL
NZ$000NZ$000
NZ$000
TIMING OF REVENUE RECOGNITION
Point in time23,007
1,90424,911
Over time85,203
16,185101,388
Total revenue108,210
18,089
126,299
Expenditure(102,294)
(15,891)
(118,185)
Segment contribution (1)5,9162,1988,114
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 20
3.1 OPERATING SEGMENTS (CONTINUED)
A reconciliation of segment contribution to profit attributable to the shareholders of the company is as follows:
In 2023, Gentrack Group generated $26.4m from a single utility customer domiciled in the United Kingdom (2022:
$20.9m).
20232022
NZ$000
NZ$000
Segment contribution (1)23,1928,114
Depreciation and amortisation(8,451)(10,693)
Net finance income/(expense)(1,290)(878)
Income tax (expense)/benefit(4,979)137
Profit/(Loss) attributable to the shareholders of the company8,472(3,320)
2023
2022
NZ$000
NZ$000
REVENUE BY DOMICILE OF ENTITY
Australia
39,543
32,463
New Zealand19,824
13,300
United Kingdom97,433
72,093
Rest of World
13,083
8,443
Total revenue
169,884
126,299
REVENUE BY DOMICILE OF CUSTOMER
Australia
42,37435,312
New Zealand14,665
8,115
United Kingdom
95,128
71,612
Rest of World17,717
11,261
Total revenue
169,884126,299
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 21
3.2 OPERATING REVENUE
Gentrack Group recognises revenue from customers when the performance obligation has been
accomplished. A performance obligation is accomplished when the customer has received all the benefits
promised under the performance obligation. The following sections detail the type of revenue recognised
within each category.
Revenue recognition involves certain revenue streams being recognised based on the stage of completion.
This process uses estimations of time required to complete the project and is based on detailed information
on hours worked to date, prior experience, and project scheduling tools. Gentrack Group employs project
managers to provide regular information to management on the progress of all projects. All estimates are reviewed
by management prior to revenue recognition.
Contract assets are initially recognised for revenue earned from services in progress and are reclassified to trade
receivables on stage of completion. Contract assets are subject to impairment assessments.
Contract liabilities are recognised if a payment is received, or a payment is due (whichever is earlier) from a customer
before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the
Group performs under the contract.
Contract assets and contract liabilities typically are recognised as trade receivables and revenue (respectively) within
a 12-month period.
ANNUAL FEES
Annual fees include software support and maintenance charged on software licenses and software subscriptions.
Revenue from annual fees is generally recognised over the period the benefits are consumed by the customer.
SUPPORT SERVICES
Support services are post implementation value-add professional services related to ongoing upgrades, minor
software revisions and extended support. Support services revenue is recognised when the service is complete or on
a stage of completion basis.
LICENSES
Revenue from license fees is recognised when the customer can benefit from the licensed software. License fees that
are highly interrelated with project services are recognised based on a stage of completion of the project.
PROJECT SERVICES
Revenue from project services is recognised based on the stage of completion of the project. This is typically in
accordance with the achievement of contract milestones and/or hours expended and forecast hours to complete the
project.
MANAGED SERVICES
Managed Services includes revenues where Gentrack uses its own software and expertise, on behalf of customers, to
deliver either improvements in the energy reconciliation process or supporting customers with billing and
operational back-office processes. Revenue is recognised when the service is complete or over the period that the
benefits are consumed by the customer.
OTHER
Other revenue is primarily revenue from hardware and the recharge of ad-hoc costs that are recharged to customers.
Revenue from hardware sales is recognised when the hardware has been delivered to the customer.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 22
3.2 OPERATING REVENUE (CONTINUED)
3.3 OTHER INCOME
GOVERNMENT
GRANTS
Government grants including certain types of credits receivable from tax authorities are recognised at their
fair value where there is a reasonable assurance that the grant will be received, and Gentrack Group will
comply with all attached conditions. When a grant relates to an expense item, it is recognised as income over
the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.
Included as other income in the statement of comprehensive income during the financial year are amounts received
from the UK tax authorities as a credit against UK corporation tax in the form of Research and Development
Expenditure Credits (RDEC) to compensate for eligible research and development activities performed in the United
Kingdom.
3.4. EXPENDITURE
The table below provides a detailed breakdown of the total expenditure presented in the statement of
comprehensive income
.
20232022
SECTIONNZ$000N
Z$000
OPERATING REVENUE:
Annual fees72,67354,
131
Support services28,27621,016
Project services34,76326,985
Licenses4902,
117
Managed sevices31,63020,
144
Other2,0521,
906
Total operating revenue169,884126,299
20232022
NZ$000NZ$000
PROFIT / (LOSS) BEFORE TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Employee entitlements109,30886,597
Administrative costs6,5675,785
Third party customer-related costs9,8977,055
Advertising and marketing2,9401,850
Consulting and subcontracting12,75912,530
Other operating expenses5,2214,368
Total expenditure146,692118,185
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 23
3.4. EXPENDITURE (CONTINUED)
Included in the total expenditure above, Gentrack Group has expensed $21.9m in Research and Development
expenditure (2022: $20.4m). This Research and Development expenditure includes payroll costs, employee benefits
and other employee related costs, direct overheads, and other directly attributable costs related to performing
Research and Development activities.
3.5 DEPRECIATION AND AMORTISATION
Depreciation on assets is calculated using the straight-line method to allocate the difference between their
original costs and their residual values over their estimated useful lives.
Except for goodwill and brands, intangible assets are amortised on a straight-line basis in the Statement of
Comprehensive Income over their estimated useful lives, from the date that they are available for use.
3.6. NET FINANCE EXPENSES
Finance income comprises interest income and foreign currency gains that are recognised in the Statement
of Comprehensive Income. Interest income is recognised as it accrues, using the effective interest method.
Finance expense comprises interest expense on borrowings, lease liability finance charges, foreign currency losses
and impairment losses recognised on the financial assets (except for trade receivables) that are recognised in the
statement of comprehensive income. All borrowing costs are recognised in the statement of comprehensive income
using the effective interest method.
4. CASH, BORROWINGS AND CASH FLOWS
This section outlines further from the statement of cashflows and provides details on the cash and cash
equivalents held in the statement of financial position. Cash comprises cash at bank and short-term deposits
.
20232022
NZ$000NZ$000
Depreciation2,8524,064
Amortisation5,5996,629
Total depreciation and amortisation8,45110,693
20232022
SECTIONNZ$000NZ$000
FINANCE INCOME
Interest income
35537
35537
FINANCE EXPENSE
Interest expense(392)
(651)
Lease liability finance charges
9.1
(1,069)(732)
Foreign exchange gains(184)468
(1,645)(915)
Net finance income/(expense)(1,290)(878)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 24
4.1 RECONCILIATION OF NET SURPLUS TO CASH FLOWS
4.2 BANK FACILITIES AND BORROWINGS
Gentrack Group has a $25 million multicurrency facility with Bank of New Zealand. This facility is to provide additional
funding as required for acquisitions and general corporate purposes. The BNZ facility expires on 16 December 2024.
The facility is secured by a general security agreement under which the bank has a security interest in Gentrack Group
assets. Covenants are in place and compliance is reported quarterly. At all times during the period Gentrack Group
has met the covenant requirements.
At 30 September 2023 $Nil (2022: $Nil) of the facility has been drawn down.
4.3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, other short-term and
highly liquid investments with original maturities of three months or less.
20232022
SECTIONNZ$000NZ$000
RECONCILIATION OF OPERATING CASH FLOWS WITH NET PROFIT/(LOSS) AFTER TAX:
Profit/(Loss) after tax10,046(3,320)
ADJUSTMENTS FOR NON-CASH ITEMS
Deferred tax
7.2
(3,667)(302)
Impairment provision - Trade receivables(230)38
Loss/(Gain) on foreign exchange transactions184(468)
Share based payments5,2091,815
Interest expense
3.6
392651
Interest income
3.6
(355)(37)
Lease liability finance charges
3.6
1,069732
Depreciation and amortisation
3.5
8,45110,693
Non-cash items21,0999,802
ADD/(DEDUCT) MOVEMENTS IN OTHER WORKING CAPITAL ITEMS:
(Increase)/Decrease in trade and other receivables
(7,373)(7,160)
Increase/(Decrease) in tax payable5,337(3,962)
(Decrease)/Increase in GST payable(283)746
Increase in contract liabilities1,206(715)
Increase in employee entitlements4,3504,986
Increase/(Decrease) in trade payables and accruals
1,5832,267
Net working capital movements4,820(3,838)
Net cash inflow from operating activities25,9195,964
20232022
NZ$000NZ$000
Cash at banks
21,77925,812
Short-term deposits27,4071,575
Total cash and cash equivalents49,18627,387
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 25
4.3. CASH AND CASH EQUIVALENTS (CONTINUED)
Short-term deposits are made for varying periods of between one month and three months, depending on the
immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.
5. ASSETS AND LIABILITIES
This section outlines further details of Gentrack Group’s financial position by building on information
presented in the statement of financial position.
5.1. TRADE AND OTHER RECEIVABLES
Gentrack Group recognises trade and other receivables initially at fair value and subsequently measured at
amortised cost using the effective interest method, less provision for impairment. An impairment provision
for trade receivables and contract assets consists of the expected credit loss in accordance with NZ IFRS 9
and a specific provision.
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive.
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognises a loss allowance based on trade receivables and
contract assets net of specific provisions applying lifetime ECLs at each reporting date. The Group has established a
provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment.
A specific provision is established when there is forward looking evidence that Gentrack Group will not be able to
collect all amounts due according to the original terms of the receivables. The carrying amount of an asset is reduced
using provision accounts, and the amount of the loss is recognised in the profit and loss. When a receivable is
uncollectible, it is written off against the specific impairment provision account. Subsequent recoveries of amounts
previously written off are credited against the profit and loss.
MOVEMENT
IN TRADE RECEIVABLES IMPAIRMENT PROVISION
The bulk of the impairment provision is reflective of B2C energy suppliers in the United Kingdom that went into
administration during 2022 and 2021.
20232022
NZ$000NZ$000
Trade receivables28,40224,723
Impairment provision - Expected credit loss(296)(385)
Impairment provision - Specific provision(3,264)(3,624)
Provision for volume discounts(267)(229)
Contract assets9,0526,895
Sundry receivables and prepayments4,1622,105
Total trade and other receivables37,78929,485
20232022
NZ$000NZ$000
Opening balance4,0093,279
Increase in impairment provision1351,545
Write back in impairment provision(699)
(813)
Effect of movement in foreign exchange129284
Bad debt written off(14)(286)
Total trade receivables impairment provision3,5604,009
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 26
5.1 TRADE AND OTHER RECEIVABLES (CONTINUED)
The expected credit loss provision for trade receivables has been measured using the same techniques as the prior
year, determined as follows.
5.2 GOODWILL
Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable
assets acquired. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to
cash-generating units (CGU) and is not amortised but is tested annually for impairment.
2023CURRENT
1-60 DAYS
PAST DUE
61-120 DAYS
PAST DUE
121-180
DAYS PAST
DUE
OVER 180
DAYS PAST
DUE
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Gross carrying amount21,8242,415953-3,21128,402
Expected credit loss allowance1093634-117296
2022CURRENT
1-60 DAYS
PAST DUE
61-120 DAYS
PAST DUE
121-180
DAYS PAST
DUE
OVER 180
DAYS PAST
DUE
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Gross carrying amount
16,2883,2409716083,61624,723
Expected credit loss allowance
76194461184385
20232022
NZ$000NZ$000
Opening balance106,240106,766
Exchange rate differences3,180(525)
Net book value109,420106,240
Goodwill allocated to Utilities106,520103,340
Goodwill allocated to Veovo2,9002,900
Net book value109,420106,240
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 27
5.3 IMPAIRMENT TESTING
IMPAIRMENT
TESTING OF GOODWILL AND OTHER ASSETS
At each reporting date, Gentrack Group assesses whether there is any indication that an asset may be
impaired. Where an indicator of impairment exists, Gentrack Group makes a formal estimate of the
recoverable amount. Where the carrying value of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. Recoverable amount is the greater of fair value
less costs to sell or the asset’s value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other
than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting
date.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects the current market assessments and the time value of money and the risks specific to the
asset. Value in use is determined by discounting the future cash flows generated by each CGU. Cash flows were
projected based on five-year business plans. The Weighted Average Cost of Capital (WACC) is based on CAPM
methodology using
market specific inputs. The WACC for each CGU is reviewed at least annually.
Gentrack Group tests annually whether goodwill has suffered any impairment or more often as required, in
accordance with the accounting policy stated above. The recoverable amounts of cash-generating units have
been determined based on value in use calculations. In preparing the five-year forecasts, management has
reviewed the assumptions and weighed up the information available at the time to ensure the forecasts are
appropriate given the CGU’s position and the prevailing market conditions. The WACC and terminal growth rates
used in these calculations are set out in the table below:
IMPAIRMENT
TESTING RESULTS
The calculations confirmed there was no impairment of goodwill during the year for the Utilities or Veovo CGU’s.
For the Utilities business the key assumption is the CAGR of revenue across the five-year period commencing 1st
October 2023. Under management’s projections this would need to fall below 2.4% (2022: 7.25%) for the recoverable
amount to be less than the carrying value of the Utilities CGU. Management’s projections, under all scenarios, project
a CAGR comfortably above this and this compares to growth in revenue in FY23 for the Utilities business of 37%
(2022: 22%).
For the Veovo business, the carrying value of the CGU at $2.3m is low in comparison to the EBITDA being generated
by this business ($3.7m in FY23) and so the assessment is not sensitive to changes in assumptions in management’s
projections.
Management believes that any reasonable possible change in the key assumptions for either CGU would not cause
the carrying amount to exceed the recoverable amount.
5.4 INTANGIBLE ASSETS
CAPITALISED DEVELOPMENT
Costs that are directly associated with the development of software are recognised as intangible assets
where the following criteria are met:
• it is technically feasible to complete the software product so that it will be available for use.
• management intends to complete the software product and use or sell it.
• there is an ability to use or sell the software product.
• it can be demonstrated how the software product will generate probable future economic benefits.
• adequate technical, financial, and other resources to complete the development and to use or sell the software
product are available; and
• the expenditure attributable to the software product during its development can be reliably measured.
CASH GENERATING UNIT
WACC
2023
Terminal Growth
Rate 2023
WACC
2022
Terminal Growth
Rate 2022
Utilities10.2%1.9%10.7%1.7%
Veovo11.0%1.9%11.8%1.7%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 28
5.4 INTANGIBLE ASSETS (CONTINUED)
Software development costs that meet the above criteria are capitalised. Other development expenditure that does not
meet the above criteria is recognised as an expense as incurred. Development costs previously recognised as expenses
are not recognised as assets in a subsequent period. Software development costs recognised as assets are amortised
over their estimated useful lives.
BRANDS
Brands are considered to have an indefinite useful life and are held at cost and are not amortised but are subject to an
annual impairment test consistent with the methodology outlined for goodwill above.
OTHER
INTANGIBLE ASSETS
Other intangible assets consist of internal use software, acquired source code, trade-marks, and customer relationships.
They have finite useful lives and are measured at cost less accumulated amortisation and accumulated impairment
losses.
AMORTISATION
Except for goodwill and brands, intangible assets are amortised on a straight-line basis in the statement of
comprehensive income over their estimated useful lives, from the date that they are available for use.
The estimated useful lives for the current and comparative periods are as follows:
• Acquired source code 10 years
• Internal use software 3 years
• Customer relationships 10 years
• Trademarks 4 years
• Capitalised development 5 years
Amortisation methods, useful lives and residual values are reviewed at each financial year end and adjusted if
appropriate. Acquired source code and internal use software are categorised as software in the below table.
2023
SOFTWARE
CUSTOMER
RELATIONSHIPS
BRAND
NAMES
TRADEMARKS
CAPITALISED
DEVELOPMENT
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
O pening balance16,3798,3505,02412292330,797
Amortisation(3,272)(1,652)-(124)(551)(5,599)
Movement in foreign exchange728372-2101,112
Closing net book value13,8357,0705,024(0)38226,311
Cost46,30524,8155,0248742,77479,792
Accumulated amortisation(32,470)(17,745)-(874)(2,392)(53,481)
Net book value13,8357,0705,024-38226,311
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 29
5.4 INTANGIBLE ASSETS (CONTINUED)
5.5 PROPERTY PLANT AND EQUIPMENT
In the statement of financial position property, plant and equipment is stated at historical cost less
depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation on assets is calculated using the straight-line method to allocate the difference between their original
costs and their residual values over their estimated useful lives, as follows:
• Furniture & equipment 7 years
• Computer equipment 3 to 7 years
• Leasehold improvements Term of lease
The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are recognised in
the statement of comprehensive income.
2022
SOFTWARE
CUSTOMER
RELATIONSHIPS
BRAND
NAMES
TRADEMARKS
CAPITALISED
DEVELOPMENT
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000
NZ$000
Opening balance20,41310,5015,0242891,47137,698
Amortisation(3,860)(2,060)-(164)
(545)(6,629)
Movement in foreign exchange(174)
(91)-(3)(4)(272)
Closing net book value16,3798,3505,024122
92330,797
Cost44,772
24,0415,0248352,71977,391
Accumulated amortisation(28,394)(15,691)-
(713)(1,796)(46,594)
Net book value16,3798,3505,024122923
30,797
2023
FURNITURE &
EQUIPMENT
COMPUTER
EQUIPMENT
LEASEHOLD
IMPROVEMENTS
TOTAL
NZ$000NZ$000NZ$000NZ$000
Opening balance4819987262,205
Additions1961,4573051,958
Depreciation(6)(941)(112)(1,059)
Transfer(132)132--
Disposal(7)(14)(0)(21)
Movement in foreign exchange103(4)9
Net book value5421,6359153,092
Cost1,7194,7392,5328,990
Accumulated depreciation(1,177)(3,104)(1,617)(5,898)
Net book value5421,6359153,092
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 30
5.5 PROPERTY PLANT AND EQUIPMENT (CONTINUED)
5.6 TRADE PAYABLES AND ACCRUALS
Gentrack Group recognises trade and other payables initially at fair value and subsequently measured at
amortised cost using the effective interest method. They represent liabilities for goods and services provided
prior to the end of the financial year that are unpaid. The amounts are unsecured, non-interest bearing and
are usually paid within 45 days of recognition.
5.7 EMPLOYEE ENTITLEMENTS
Liabilities for salaries and wages, including non-monetary benefits, long service leave, and annual leave are
recognised in employee benefits in respect of employees’ services up to the reporting date. They are
measured at the amounts expected to be paid when the liabilities are settled. Cost for non-accumulating sick
leave is recognised when the leave is taken and measured at the rates paid or payable.
2022
FURNITURE &
EQUIPMENT
COMPUTER
EQUIPMENT
LEASEHOLD
IMPROVEMENTS
TOTAL
NZ$000NZ$000NZ$000NZ$000
Opening balance6427551,2862,683
Additions13875692986
Depreciation(255)(518)(648)(1,421)
Disposal(46)--(46)
Movement in foreign exchange25(4)
3
Net book value481998726
2,205
Cost2,1135,1602,191
9,464
Accumulated depreciation(1,632)(4,162)(1,465)
(7,259)
Net book value481998726
2,205
20232022
NZ$000NZ$000
Trade creditors
3,4201,634
Sundry accruals5,1715,209
Total trade payables and accruals8,5916,843
20232022
NZ$000NZ$000
CURRENT
Long service leave
669605
Other short-term employee benefits18,36414,126
19,03314,731
NON-CURRENT
Long service leave835562
Total employee entitlements19,86815,293
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 31
5.8 INVENTORY
Inventories are stated at the lower of cost and net realisable value. Cost is calculated using a weighted average
method and includes expenditure incurred to purchase the inventory and transport it to its current location.
Net realisable value is the estimated selling price of the inventory in the ordinary course of business less costs
necessary to make the sale. The cost of inventories consumed during the year are recognised as an expense
and included in expenditure in the statement of comprehensive income.
6. CAPITAL STRUCTURE
This section outlines Gentrack Group’s capital structure and details of share-based employee
incentives which have an impact on Gentrack Group’s equity.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and
share options are recognised as a deduction from equity, net of any tax effects. Where any Gentrack Group
company purchases the Company’s equity share capital (treasury shares), the consideration paid is deducted
from equity attributable to the Company’s equity holders until the shares are cancelled or transferred outside Gentrack
Group.
Ordinary shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as
declared from time to time and are entitled to one vote per share at meetings of the Company and rank equally with
regard to the Company’s residual assets.
6.1 CAPITAL MANAGEMENT
The capital structure of Gentrack Group consists of equity raised by the issue of ordinary shares in the parent
company.
Gentrack Group manages its capital to ensure that companies in the Group can continue as a going concern.
Gentrack Group is not subject to any externally imposed capital requirements.
During 2023 Performance Rights of 1,251,422 (2022: 1,514,803) in relation to Long Term Incentive Schemes vested,
resulting in the same number of new shares being issued. Also 68,737 (2022: 17,637 ) shares were issued as part
payment of Gentrack Group Directors fees.
6.2 SHARE-BASED PAYMENTS
Gentrack Group operates equity settled, share-based payments schemes under which it receives services
from employees, as consideration for equity instruments of Gentrack Group. A valuation is completed for
each scheme at the grant date to estimate the fair value of the performance rights granted. Management also
makes estimates about the number of performance rights that are expected to vest which determines the expense
recorded in the statement of profit or loss.
The fair value of the performance rights is determined at the grant date using the Black Scholes valuation
method. The fair value of the performance rights is recorded as an expense in the profit or loss over the
vesting period, based on Gentrack Group’s estimate of the number of performance rights that will vest, with a
corresponding entry to the share-based payment reserve within equity. During the year ended 30 September 2023
$5.3m has been recognised in the profit or loss (2022: $1.8m).
The number of performance rights allocated is based on a percentage of salary or other such percentage and are
calculated with reference to the 10-trading day volume weighted average price (VWAP) of shares traded on the NZX
based on dates indicated in the issue documentation.
-
2023202220232022
NZ$000000NZ$000NZ$000
Ordinary Shares100,48098,947194,009191,699
Issue of new ordinary shares1,3181,5332,0222,310
101,798100,480196,031194,009
SHARES ISSUEDSHARE CAPITAL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 32
6.2 SHARE BASED PAYMENTS (CONTINUED)
Share based payments were introduced to:
- Assist with the retention of eligible employees.
- Significantly increase the number of Gentrack Group employees that have a stake in Gentrack Group.
- Give eligible employees a share in Gentrack Group’s future performance.
Gentrack Group operated the follow three share schemes during the year:
- Senior Leadership Long Term Incentive Scheme - Performance rights are subject to a combination of tenure
and the Earnings Per Share (EPS) hurdle, split evenly and that will vest after 18 months and three years
respectively, dependent on achievement of the period of service and EPS performance hurdle.
- Gentrack Long Term Incentive Scheme – This scheme is for selected key employees who are not part of the
senior leadership long term incentive scheme. The performance rights vesting under this scheme are
subject to the participants continuing to be employed by Gentrack Group at the end of the vesting period.
- CEO Long Term Incentive Scheme
– This scheme was introduced in 2020 for the CEO and the final grant
under this scheme was made in October 2022. Under the initial grant, approved in 2021, performance
rights were subject to a combination of immediate vesting and 12 and 13 months tenure. These
performance rights have now all vested. Under the subsequent annual grants, starting October 2021,
performance rights are subject to a combination of tenure and performance hurdles (either Share Price
Appreciation or Earnings Per Share (EPS) hurdles) vesting across a 3 year period from the date of grant. The
performance rights subject to the performance hurdle and eligible to vest will be calculated on a straight-line
basis.
Post the year end, and as approved at the Special Shareholders’ Meeting held on 9th October 2023, grants for the
CEO and senior management of performance rights in respect of the financial years ending 30 September 2024,
2025, and 2026 will be subject to achieving both EPS and share price appreciation hurdles. The EPS hurdle is set at
fixed rates for each vesting year and for the share price appreciation hurdle an incremental vesting scale applies for
performance rights eligible to vest.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 33
6.2 SHARE BASED PAYMENTS (CONTINUED)
Below is the table of remaining outstanding Performance Rights at 30 September 2023.
GRANT DATEVESTING DATE
TOTAL VALUE OF
GRANTED
PERFORMANCE
RIGHTS
PERFORMANCE
RIGHTS GRANTED
2023
NZ$000000
1 October 202030 November 2023687463
1 October 202130 November 2023266183
1 October 202231 March 20241,672349
1 October 202230 November 20251,672349
Total Senior Leadership LTI Schemes4,2971,344
1 October 202130 November 2023282161
1 October 202130 November 2024282161
1 October 202230 November 20231,107325
1 October 202230 November 20241,107325
1 October 202230 November 20251,107324
Total Gentrack LTI Schemes3,8851,296
1 October 202131 October 2023314180
1 October 202131 October 2024314180
1 October 202231 October 2023532195
1 October 202231 October 2024532195
1 October 202231 October 2025532195
Total CEO LTI Schemes2,224944
Total Performance Rights Outstanding
10,4063,584
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 34
6.2 SHARE BASED PAYMENTS (CONTINUED)
PERFORMANCE
RIGHTS MOVEMENTS
Below is a summary of all performance rights, granted, exercised and forfeited across all the equity settled share-
based payments schemes operated by Gentrack Group during 2023:
6.3 DIVIDENDS
During the financial year 2023, $Nil dividends were paid (2022: $Nil).
GRANT DATEVESTING DATE
TOTAL VALUE OF
GRANTED
PERFORMANCE
RIGHTS
PERFORMANCE
RIGHTS GRANTED
2022
NZ$000000
1 April 20201 April 2023416313
1 October 202030 November 2023710459
1 October 202131 March 2023266183
1 October 202130 November 2023266183
Total Senior Leadership LTI Schemes1,6571,138
1 October 20201 October 2022643450
1 October 202130 November 2022308176
1 October 202130 November 2023308176
1 October 202130 November 2024308176
Total Gentrack LTI Schemes1,566977
1 October 202131 October 202215790
1 October 202131 October 2023314180
1 October 202131 October 2024314180
Total CEO LTI Schemes786449
Total Performance Rights Outstanding
4,0092,564
GRANT DATE
AVERAGE EXERCISE
PRICE PER
PERFORMANCE RIGHT
NUMBER OF
PERFORMANCE
RIGHTS
AVERAGE EXERCISE
PRICE PER
PERFORMANCE RIGHT
NUMBER OF
PERFORMANCE
RIGHTS
000000
As at 1 October $1.562,564$1.543,876
Granted during the year$3.682,395$1.641,457
Vested during the year$1.50(1,251)$1.50(1,515)
Forfeited during the year$4.42(125)$1.64(1,254)
As at 30 September $2.903,584$1.562,564
20232022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 35
6.4 EARNINGS PER SHARE
Gentrack Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the net profit attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares on issue during the year, excluding shares purchased and held as treasury
shares.
Diluted EPS is determined by adjusting the net profit attributable to ordinary shareholders and the weighted average
number of ordinary shares on issue for the effects of the dilutive impact of potential ordinary shares, which comprise
performance share rights granted to employees.
Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease
EPS or increase the profit per share.
* For 2022, a loss was made as such, the shares deemed to be issued for share-based payments have not been
included to determine earning per share.
7. TAX
7.1 INCOME TAX EXPENSE
In the statement of comprehensive income, the income tax expense comprises current and deferred tax.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Current tax payable also includes any tax liability arising from the declaration of dividends
.
20232022
Profit/(Loss) attributable to the shareholders of the company10,046(3,320)
Basic weighted average number of ordinary shares issued
99,98399,840
Shares deemed to be issued for no consideration in respect of
share-based payments
3,5842,564
Weighted average number of shares used in diluted earnings per
share
103,566102,404
Basic earnings per share
$0.10($0.03)
Diluted earnings per share*$0.10
($0.03)
2023
2022
NZ$000
NZ$000
INCOME TAX EXPENSE COMPRISES:
Current tax expense9,782
166
Deferred tax expense (4,803)(303)
Tax expense/(benefit)4,979
(137)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 36
7.1 INCOME TAX EXPENSE (CONTINUED)
RECONCILIATION OF INCOME TAX EXPENSE
The relationship between the expected income tax expense based on the domestic effective tax rate of Gentrack
Group at 28% (2022: 28%) and the reported tax expense in the statement of comprehensive income can be
reconciled as follows
:
*Amortisation related to intangibles created on acquisition are non-deductible for tax purposes. The intangibles
amortisation and related deferred tax are amortised over 10 years. For the purposes of the above table the deferred
tax movement has been offset against the non-deductible tax expense.
As at 30 September 2023 Gentrack Group has $10.5m (2022: $11.3m) of imputation credits available for use in
subsequent reporting periods.
7.2 DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax is recognised, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the
reporting date and are expected to apply when the related deferred income tax asset is realised, or the deferred
income tax liability is settled.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except for deferred
income tax liabilities where the timing of the reversal of the temporary difference is controlled by Gentrack Group
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied
by the same taxation authority on either the same taxable entity or different entities where there is an intention to
settle the balance on a net basis.
Additional income tax expenses that arise from the distribution of cash dividends are recognised while the liability to
pay the related dividend is recognised. Gentrack Group does not distribute non-cash assets as dividends to its
shareholders.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related benefits will be realised.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. Management applies judgement when reviewing
current business plans and forecasts to ascertain the likelihood of future taxable profits.
20232022
NZ$000NZ$000
Profit/(Loss) before tax15,025(3,457)
Taxable income15,025(3,457)
Domestic tax rate for G entrac k G roup28%28%
Expected tax expense/(benefit)4,207(968)
Non-assessable income(428)-
Non- deductible expense*635102
R &D tax c redits(85)(46)
Rec ognition previously unrec ognised losses(848)-
Tax losses for which no deferred tax was recognised1,568326
Difference in tax rates of overseas subsidiaries (341)756
Change in tax rates (517)(98)
Prior period adjustments788(209)
Actual tax expense/(benefit)4,979(137)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 37
7.2 DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
The movement in temporary differences has been recognised in the statement of comprehensive income. Deferred tax
has been recognised at a rate at which they are expected to be realised: 28% for New Zealand entities, 30% for Australian
entities, 22% for Denmark entities, 21% for US entities, 17% for Singapore entity and 25% for India. On 23 September
2022, UK Government announced an increase in the corporate tax rate to 25% effective from 1 April 2023. For UK
entities 19% is applied for first half of 2023 and 25% thereafter.
Movement in temporary timing differences during the year:
2023
OPENING
BALANCE
TEMPORARY
MOVEMENT
RECOGNISED
CURRENCY
TRANSLATION
CLOSING
BALANCE
NZ$000NZ$000NZ$000NZ$000
Trade and other receivables(88)816(1)
Intangible assets(2,811)922(206)(2,095)
Contract liabilities947339(49)1,237
Provisions for doubtful debts and sundry
accruals
3,5782,875986,551
Losses carried forward897723(150)1,470
Other56(137)(4)(85)
Net deferred tax2,5794,803(305)7,077
2022
OPENING
BALANCE
TEMPORARY
MOVEMENT
RECOGNISED
CURRENCY
TRANSLATION
CLOSING
BALANCE
NZ$000NZ$000NZ$000NZ$000
Trade and other receivables(14)(68)(6)(88)
Intangible assets(3,291)43050(2,811)
Contract liabilities983(113)77947
Provisions for doubtful debts and sundry
accruals
2,676855473,578
Losses carried forward1,727(852)22897
Other550156
Net deferred tax2,0863021912,579
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 38
8. FINANCIAL RISK MANAGEMENT
Gentrack Group is exposed to credit risk, liquidity risk and market risks which include foreign currency risk,
commodity price risk and interest risk. This section details each of these financial risks and how they are
managed by Gentrack Group.
The Board of Directors has overall responsibility for the establishment and oversight of Gentrack Group’s risk
management framework. Gentrack Group’s risk management policies are established to identify and analyse
(amongst other risks) the financial risks faced by Gentrack Group, to set appropriate risk limits and controls,
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect
changes in market conditions and Gentrack Group’s activities.
8.1 CREDIT RISK
Credit risk is the risk of financial loss to Gentrack Group if a customer or counter party to a financial instrument fails to
meet its contractual obligations, and it arises principally from Gentrack Group’s trade receivables from customers in the
normal course of business.
Gentrack Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The credit worthiness of a customer or counter party is determined by several qualitative and quantitative
factors. Qualitative factors include external credit ratings (where available), payment history and strategic
importance of customer or counter party. Quantitative factors include transaction size, net assets of customer or counter
party, and ratio analysis on liquidity, cash flow and profitability.
In relation to trade receivables and contract assets, it is Gentrack Group’s policy that all customers who wish to trade on
terms are subject to credit verification on an ongoing basis with the intention of minimising bad debts. The nature of
Gentrack Group’s trade receivables is represented by regular turnover of product and billing of customers based on the
contractual payment terms.
Gentrack Group has an impairment provision that represents its estimate of future incurred losses in respect of trade and
other receivables. The impairment provision consists of the expected credit loss provision in accordance with NZ IFRS
9 and a specific doubtful debt provision is used where there is internal and external evidence that indicates a trade
receivable is impaired.
The carrying amount of Gentrack Group’s financial assets represents the maximum credit exposure as summarised in
the table below:
*The current bucket includes contract assets.
With the exception of B2C energy suppliers in United Kingdom in administration and specifically provided for,
Gentrack Group’s trade receivables and contract assets are not exposed to any significant credit exposure to any
single counterparty or group of counterparties having similar characteristics. Trade receivables and contract assets
consist of several customers in various geographical areas. Based on historic information about customer default
rates, management considers the credit quality of trade receivables that are not past due or impaired to be good.
Sundry receivable and prepayments comprise of prepaid expenses and lease bonds that do not carry credit risk.
As at 30 September 2023 there are no significant concentrations of credit risk for financial assets designated as at
amortised cost or at fair value. The carrying amount reflects Gentrack Group’s maximum exposure to credit risk for
these financial assets.
Judgement has been applied to the recovery of all trade receivables and contract assets, with management
confirming that all carrying amounts are deemed to be recoverable and not impaired.
GROSS
IMPAIRMENT
PROVISION
GROSS
IMPAIRMENT
PROVISION
NZ$000NZ$000
NZ$000NZ$000
Current*30,876(109)
23,183(364)
Past due 1-60 days2,415(64)
3,240(94)
Past due 61-120 days953(177)971(55)
Past due 121-180 days-
-608(61)
Past due over 180 days
3,210(3,210)3,616(3,435)
37,454
(3,560)31,618(4,009)
20232022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 39
The credit risk for cash and cash equivalents is considered negligible since the counterparties are highly reputable
financial intuitions with high quality external credit ratings.
8.2 MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect
Gentrack Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the
return on risk.
FOREIGN CURRENCY RISK
Gentrack Group is exposed to currency risk on transactions that are denominated in a currency other than the
functional currency of Gentrack Group (NZD), primarily the following currencies Australian Dollar (AUD), Pound
Sterling (GBP), EURO (EUR), US Dollar (USD), Singaporean Dollars (SGD), Indian Rupees (INR) and Danish Kroner
(DKK). Trade in SGD and INR were not significant for disclosure.
Gentrack Group’s exposure to foreign currency risk at the reporting date was as follows (all amounts are
denominated in New Zealand Dollars):
The following table summarises the sensitivity of profit or loss and equity with regards to Gentrack Group’s financial
assets and financial liabilities affected by AUD/NZD exchange rate, the GBP/NZD exchange rate, the EUR/NZD
exchange rate, the USD/NZD exchange rate, and the DKK/NZD exchange rate with all other aspects being equal. It
assumes a +/-10% change in the NZD to the currency exchange rate for the year ended 30 September 2023 (2022:
10%). These +/-10% sensitivities have been determined based on the average market volatility in exchange rates in
the preceding 12 months.
Gentrack Group’s exposure to foreign exchange rates varies during the year depending on the volume of foreign
currency transactions. Even so, the analysis above is representative of Gentrack Group’s exposure to market risk.
AUDGBPEURUSDDKK
2023
NZ$000NZ$000
NZ$000NZ$000NZ$000
Cash and cash equivalents
10,71730,717
2,124653379
Trade and other receivables4,02824,912-
1,606
614
Trade and other payables
(597)(3,438)(129)
(679)(115)
Net exposure
14,14852,1911,995
1,580878
2022
Cash and cash equivalents5,96516,027
1,17678669
Trade and other receivables5,32619,2501,8261,583442
Trade and other payables(721)
(3,815)(63)(60)(53)
Net exposure10,570
31,4622,9392,309458
AUDGBPEURUSDDKK
NZ$000NZ$000NZ$000NZ$000NZ$000
2023
10% strengthening in NZD(1,286)(4,745)(181)(144)(80)
10% weakening in NZD1,5725,79922217698
2022
10% strengthening in NZD(961)(2,860)(267)(210)(42)
10% weakening in NZD1,1743,49632725751
PROFIT/EQUITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 40
8.3 LIQUIDITY RISK
Liquidity risk is the risk that Gentrack Group will not be able to meet its financial obligations as and when they
become due and payable. Gentrack Group’s approach to managing liquidity risk is to ensure, as far as possible, that it
will always have sufficient liquidity to meet its liabilities when they become due and payable, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to Gentrack Group’s reputation.
Gentrack Group has sufficient cash to meet its requirements in the foreseeable future.
The following table details Gentrack Group’s contractual maturities of financial liabilities, as at the reporting date:
8.4 INTEREST RATE RISK
Gentrack Group’s interest rate risk primarily arises from short term bank borrowing, cash, and advances from related
parties. Borrowings and deposits at variable interest rates expose Gentrack Group to cash flow interest rate risk.
Borrowings and deposits at fixed rates expose Gentrack Group to fair value interest rate risk.
The following tables detail the current interest rate of the interest-bearing financial assets and liabilities and interest
rate repricing profile.
ON DEMAND
LESS THAN 3
MONTHS
3 TO 12
MONTHS
1 TO 5 YEARS
>5 YEARSTOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
2023
Trade payables
-3,420---3,420
Lease liabilities-8262,47712,4345,75521,491
-4,2452,47712,4345,75524,911
2022
Trade payables
-1,634---1,634
Lease liabilities-4191,2567,3985,223-
-
2,0531,2567,3985,2231,634
FLOATING
FIXED UP TO
3 MONTHS
FIXED UP TO
6 MONTHS
FIXED UP TO
5 YEARS
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000
ASSETS
Cash on demand21,779---21,779
Term deposit-27,407--27,407
Total exposure21,77927,407--49,186
EFFECTIVE
INTEREST
RATE +1%
EFFECTIVE
INTEREST
RATE -1%
NZ$000NZ$000
Cash on demand220(220)
Term deposit277(277)
Total exposure497(497)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 41
8.5 FINANCIAL INSTRUMENTS
Gentrack Group’s financial assets are measured at amortised cost. Gentrack Group’s financial assets are held
within a business model whose objective is to hold the financial asset to collect contractual cash flows and the
financial asset gives rise to contractual cash flows on specified dates that are payments of principal and
interest on the principal outstanding.
Gentrack Group’s financial liabilities are measured at amortised cost.
Gentrack Group’s financial assets and liabilities by category are summarised as follows:
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise of cash at bank and on hand and the carrying amount is equivalent to fair value.
TRADE RECEIVABLES
These assets are short term in nature and are reviewed for impairment; the carrying value approximates their fair value.
TRADE PAYABLES
These liabilities are mainly short term in nature with the carrying value approximating the fair value.
FAIR VALUES
Gentrack Group’s financial instruments that are measured after initial recognition at fair values are grouped into levels
based on the degree to which their fair value is observable:
• Level 1 – fair value measurements derived from quoted prices in active markets for identical assets.
• Level 2 – fair value measurements derived from inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly or indirectly.
• Level 3 – fair value measurements derived from valuation techniques that include inputs for the asset or liability
which are not based on observable market data.
There have been no transfers between levels or changes in the valuation methods used to determine the fair value of
Gentrack Group’s financial instruments during the period. As at 30 September 2023 Gentrack Group has no level 3
financial instruments (2022: $Nil) .
FINANCIAL INSTRUMENTS BY CATEGORY
* Financial year 2022 has been updated to exclude $2.1m of prepayments from financial assets and to include lease
liabilities as financial liabilities.
20232022
NZ$000NZ$000
FINANCIAL ASSETS MEASURED AT AMORTISED COST
Cash and cash equivalents49,18627,386
Trade receivables and contract assets*33,62727,380
82,81356,871
FINANCIAL LIABILITIES MEASURED AT AMORTISED COST
Trade payables(3,420)(1,634)
Lease liabilities*(17,306)(13,082)
(20,725)(14,716)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 42
9. OTHER INFORMATION
9.1 LEASE ASSETS AND LEASE LIABILITIES
RECOGNITION
AND MEASUREMENT OF GENTRACK GROUP LEASING ACTIVITIES
Gentrack Group predominantly leases property for fixed periods of 1-12 years and may have extension
options. These extension options are usually at the discretion of Gentrack Group and are included in the
measurement of the lease asset if management intends to exercise the extension. Lease terms are negotiated
on an individual basis and contain a variety of terms and conditions. However, these lease agreements do not impose
any covenants. Lease amendments relate to short-term lease extensions.
Leases are recognised as a right of use asset (lease asset) and a corresponding lease liability at the date at which the
leased asset is available for use. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to profit or loss over the lease period. The lease asset is depreciated over the shorter of the asset’s
useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payments that are based on an index or a rate
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the lessee’s incremental borrowing rate, being the rate that the lessee
would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
Lease assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Key movements related to the lease assets and lease liabilities are presented below:
LEASE
ASSETS
20232022
NZ$000NZ$000
Balance at 1 October8,5608,162
Additions6,4311,854
Terminations(178)-
Amendments(316)1,155
Depreciation charges(1,793)(2,644)
Exchange differences(66)33
Lease assets at 30 September12,6388,560
Property12,6378,560
Lease assets at 30 September12,6378,560
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 43
9.1 LEASE ASSETS AND LEASE LIABILITIES (CONTINUED)
LEASE LIABILITIES
LEASE EXPENSES
9.2 AUDITORS REMUNERATION
The table below sets out the amounts paid to Gentrack Group’s auditors, EY, and non-EY auditors during the year
ended 30 September 2023.
20232022
NZ$000NZ$000
Balance at 1 October13,08212,552
Additions6,4311,854
Terminations(196)-
Amendments(310)1,155
Payments(2,731)(3,317)
Accretion of interest1,069814
Exchange differences(39)24
Lease liabilities at 30 September17,30613,082
Less than one year2,2871,675
One to five years9,7967,398
More than five years5,2234,009
Lease liabilities at 30 September17,30613,082
20232022
NZ$000NZ$000
Depreciation charges1,7932,347
Financ e c harges1,069
814
Lease expenses2,8623,161
20232022
NZ$000NZ$000
EY - audit fees461408
Non E Y audit firm fees:
- Audit fees1654
- Accounting advise and taxation & compliance services5367
Total fees paid to auditor(s)530529
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 44
9.3 KEY MANAGEMENT AND RELATED PARTIES
Key management personnel are defined as those persons having authority and responsibility for planning,
directing, and controlling the activities of Gentrack Group, directly or indirectly, and include the Directors,
the Chief Executive, and their direct reports. The following table summarises remuneration paid to key
management personnel.
Gentrack Group’s Directors are also directors of other companies.
Some of the Directors and key management personnel are shareholders in Gentrack Group Limited. Gentrack Group
does not transact with the Directors or key management personnel, and their related parties, other than in their
capacity as Directors, consultants, and employees. Refer to note 2.4 for more information on other related parties.
9.4 OTHER DISCLOSURES
CAPITAL
COMMITMENTS
There are no capital commitments at 30 September 2023 (2022: $Nil).
CONTINGENCIES
BNZ and ASB New Zealand has provided guarantees of $0.7m (2022: $0.8m) on behalf of the Gentrack Group, these
guarantees are in place for software implementation projects, property leases and credit card programs.
EVENTS
AFTER BALANCE DATE
There were no material events after balance date.
On 27 November 2023, the Gentrack Group Board determined that no final dividend will be paid out for the 2023
financial year (2022: nil).
20232022
NZ$000NZ$000
Short-term employee benefits8,0656,528
Share-based payments3,352741
Directors fee665623
Remuneration paid to Key Management Personnel12,0827,892
CORPORATE DIRECTORY
GENTRACK FULL YEAR FINANCIAL STATEMENTS / 45
REGISTERED OFFICE
Gentrack Group Limited
17 Hargreaves Street, St Marys Bay, Auckland 1011,
New Zealand
Phone: +64 9 966 6090
Level 15, 628 Bourke Street, Melbourne, VIC 3000
Australia
Phone: +61 3 9867 9100
POSTAL ADDRESS
PO Box 3288, Shortland Street, Auckland 1140 New
Zealand
NEW ZEALAND INCORPORATION NUMBER
3768390
AUSTRALIAN REGISTERED BODY NUMBER (ARBN)
169 195 751
DIRECTORS
Andy Green, Chair
Nicholas Luckock
Fiona Oliver
Stewart Sherriff
Darc Rasmussen
Gary Miles
COMPANY SECRETARY
Kerry Nickels
AUDITOR
EY
EY Building, 2 Takutai Square, Britomart
Auckland 1010
Phone: +64 9 377 4790
LEGAL ADVISERS
BELL GULLY
BANKERS
BANK OF NEW ZEALAND
ASB BANK LIMITED
ANZ LIMITED
HSBC PLC
NORDEA DENMARK A/S
BANK OF VALLETTA PLC
TRUIST FINANCIAL CORPORATION
SHARE REGISTRAR
NEW ZEALAND
LINK MARKET SERVICES LIMITED
Level 30, PwC Tower, 15 Customs Street West, ,
Auckland 1010
PO Box 91 976, Auckland 1142
Phone: +64 9 375 5998
Facsimile: +64 9 375 5990
Email: enquiries@linkmarketservices.com
AUSTRALIA
LINK MARKET SERVICES LIMITED
Level 12, 680 George Street, Sydney, NSW 2000
Locked Bag A14, Sydney South, NSW 1235
Phone: +61 1300 554 474
Facsimile: +2 9287 0303
Email: enquiries@linkmarketservices.com
CORPORATE DIRECTORY
GENTRACK FULL YEAR FINANCIAL STATEMENTS / 46
---
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Gentrack Group
FY23
Earnings
28 Nov 2023
[NZX/ASX: GTK]
2
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
This presentation may contain forward-looking statements.
Forward-looking statements often include words such as
‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with
discussions of future operating or financial performance.
The forward-looking statements are based on management’s
and directors’ current expectations and assumptions regarding
Gentrack’s business and performance, the economy and other
future conditions, circumstances and results. As with any
projection or forecast, forward-looking statements are inherently
susceptible to uncertainty and changes in circumstances.
Gentrack’s actual results may vary materially from those
expressed or implied in its forward-looking statements.
All figures are shown in NZ$M.
Disclaimer
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Gentrack
FY23 Business Review
Gary Miles
Chief Executive Officer
4
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Financial Headlines
Revenue growth driven by 36.7% increase
at Utilities
•Customer wins & upsells to existing customers
driving underlying growth. Excluding customers
in insolvencies, revenue up 47.0%
•Revenue from Bulb and other insolvent UK
customerswas $27.6m. We do not expect further
revenue from these customers in FY24.
Veovo revenue up 21.3% at $21.9m
•Continued strong growth in ARR (up 15%)
EBITDA at $23.2m ($15.1m higher)
•Revenue growth delivering EBITDA growth. All
R&D investment expensed in the year.
Cash at $49.2mis$21.8mhigher than last
year end
•High level of EBITDA to cash conversion
•No debt
REVENUE
UTILITIES
REVENUE
$108.2M
$147.9M
VEOVO
REVENUE
185%
EBITDA
34.5%
$27.4M
$49.2M
NET CASH
$69.4M
$105.0M
ARR excl. insolvent
customers
36.7%
21.3%
51.2%
79.6%
$18.1M
$21.9M
$126.3M
$169.9M
FY22FY23
$8.1M
$23.2M
5
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Outlook Update
The strong underlying growth in both Utilities and Veovomeans we are able to upgrade our
revenue guidance for FY24, from the prior guidance of being between $157m to $160m to
being at least in line with FY23 revenue at c.$170m despite the loss of ‘one off’ revenues of
$27.6m from insolvent UK customers.Against this higher revenue guidance, EBITDA is
expected to be between $20.5m and $25.5m (12%-15%).This compares to our previous
guidance which would have given a range of between c. $19m and $27m.
6
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
of utilities will have to transform in the next decade
to meet Energy Transition / Net Zero objectives,
one of the world’s most significant imperatives.
100%
Gentrack is at the heart of this transformation with one of
theleading propositions on the market:
g2.0 best-in -class billing, crm, energy mgt stack
proven transformation services capabilities
a world class management team
5000 person years of utility experience
Gentrack momentum continues, growing revenues , employees , customers & value
We invite the investor community to join us on this essential wave of change
7
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Our scorecard for ‘Grow in our core markets’
Implement booked wins in Australia,
New Zealand and UK
Reach new energy customers
and grow our water footprint
Upsell G2, cloud services & innovation
highway to all existing customers
UKNZAUS
Regional growth
revenue
compared to
FY22:
1st G2 full-stack transformation
project. Strong pipeline and upsell
to customer base
full-stack
Example g2.0 add-on: Data,
Analytics & AI -13 customers
D&A module
3 new managed services
customers in the UK
New age energy success
with Solar & Battery bundles
For water: new win in Australia; UK transformation
completed; Fiji modernization and pipeline growth.
8
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Scorecard for ‘Expand in EMEA and Asia'
We established our Middle-East hub
in Riyadh (Saudi Arabia)
We closed our first major contractwith
energy & water provider in Saudi Arabia
in SOUTH-EAST-ASIA
in EUROPE and MIDDLE-EAST
Company geographic expansion:
We opened our Singapore hub,
local team, keep pipeline
Employees growth to
support our business activities
Successfully scaling India –now 100+employees
Staff numbers reached ~750 (c.30% growth over FY22)
Staff turnover at an all-time low
9
© Gentrack 2023. All rights reserved.
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Airport Division Growth Accelerating
Strong demand for digital transformation across the airport sector
Expand the base
Win new airports
Innovate
the sales pipeline
Migrated to new
cloud tech stack to
reduce cloud cost
Machine learning
pilot for future EU
regulation
Forecasting pilot
in tier-1 US airport
transformation projects go-live,
including first managed services
4
Numerous upsells,
including in
5 tier-1 airports
upgrades
signed
5
Major new airport customers
including UK and Middle East
5
Doubled+
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
John Priggen
Chief Financial Officer
Gentrack
FY23 Results
11
© Gentrack 2023. All rights reserved.
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Group Profit and Loss
Revenue up 34.5% vs FY22: Strong growth
at bothUtilities & Veovo.
Costs up 24% vs FY22 to support revenue
growth and continued investment in R&D (all
expensed in the year) and Sales.
EBITDA up $15.1m at $23.2m
R&D tax credit of $1.6m in UK (claim covers
two years). Changing tax rules will make this
less generous in future years.
NPATprofit of $10m v $3.3m loss in FY22
1 Underlying EBITDA being earnings before depreciation, amortisation, impairments and non-operating expenses related to acquisitions. EBITDA is a non-GAAP measure
Utilities
Veovo
Group
12
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Utilities Revenue Analysis
Total revenue up 36.7% v FY22
Strong underlying growth (excludingthe $27.6m
from Bulb & other UK insolvencies):
•47% growth in total underlying revenues.
•59% growth in underlying recurring revenues
(CMRR & TRR).
Growth from delivering on recent customer wins
and upsells to existing customers.
In line with prior guidance, we expect no further
revenue from Bulb/insolvent UK customers in FY24.
Utilities Revenue FY23 v FY22
To t a l : $108.2m
Total:$147.9m
Committed Monthly
Recurring Revenues
(CMRR)
Non-contracted
Recurring Revenues
(TRR)
Non-recurring
Revenues (NRR)
Revenue from Bulb
& other UK insolvencies
FY22FY23
Underlying:$82.0m
Underlying:$120.3m
47%
13
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Utilities – Analysis of Underlying Revenue
FY23 v FY22 Revenue by region excl. insolvencies
Revenue by market segment
FY23
excl. insolvencies
•Strong underlying growth across all
regions.
•ROW - growing international footprint
with c.$4m revenue from customers in
Singapore, Fiji & Papua New Guinea.
•Strong growth in both energy and water
All other
customers
56%
22%
83%
ROW
63.4
39.5
13.3
4.1
40.6
32.5
7.3
1.5
167%
Top 10 customers by revenue
FY23
excl. insolvencies
14
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Utilities Expenditure Analysis
•$12.5m increase in direct costs, in people &
hosting, to support higher revenues.
•Higher investment in strategic R&D (up
$4.8m) as our underlying revenue grows.
•$3.8m investment in international
expansion (Asia & EMEA) including setting
up and contracting first win in Saudi Arabia.
•Continued strong investment in Sales &
Marketing within our core market (up
$3.8m).
Utilities Costs FY23 v FY22 (NZ$m)
15
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This document is the intellectual property of Gentrack.
Revenue Analysis
•Recurring revenue continues to grow/ up 15.8%over FY22 at $14.1m
•Strong demand for upgrades & transformations driving higher NRR up $1.9m at $7.8m this year.
VeovoRevenue FY22 v FY23
VeovoRevenue by Geography FY23 v FY22
Committed Monthly
Recurring Revenues
(CMRR)
Non-contracted
Recurring Revenues
(TRR)
Non-recurring
Revenues (NRR)
Total Revenue
Up 21.3%on FY 22
Annual
Recurring
Revenue
$14.1m
Up 15.8% on FY 22
$18.1m
$21.9m
EMEA
Americas
APAC
FY 22
FY 23
21%
16
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Cashflow
•Cash up $21.8m from September 2022 (+80%).
•High cash conversion from EBITDA, with no R&D capitalisedin year.
•Strong cash collections reflects good project execution.
•Recovery of tax overpaid from prior years and R&D tax credits of $1.6m reducing FY23 tax payments.
EBITDA to Net Cashflow FY23 (NZ$m)
30
September
2022
30
September
2023
Cash$27.4m$49.2m
Debt*NilNil
Net Cash$27.4m$49.2m
* Group retains a $25m credit facility currently undrawn
17
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
In Summary
We are pleased with our progress in all of Gentrack’s core markets, and excited to be
entering the Middle East, with contract wins at both our Utilities and Veovo businesses.
For the other new markets targeted, in Southeast Asia and mainland Europe, we have built a
strong pipeline and are making good progress.
Genesis’s decision to transform their business and upgrade to g2.0 is a great vote of
confidence in our new solution and demonstrates the strength ofour partnering strategy
with SalesForce and AWS.
Gentrack’s people are highly engaged and our employee attrition is well below the tech
global benchmark.
I want to welcome new investors who have joined our register and thank our long standing
and supportive investors. We look forward to a long and fruitful journey together.
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Q&A
19
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GAAP to Non-GAAP Profit Reconciliation
NZ$m
Full Year
30 Sep 22
Full Year
30 Sep 23
Reported net profit/(loss) for the period (GAAP)
(3.3)10.0
Add:Net finance Expense
0.91.3
Add/(deduct):Income Tax expense/(credit)
(0.1)5.0
Add: Depreciation and amortisation
10.78.5
Add/(deduct): Other Income (R&D Tax Credit)
0.0(1.6)
EBITDA
8.123.2
20
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
FY23 on a Constant Currency Basis
NZ$mFY23
FY23
Constant
Currency
Difference
(vs FY23)
Revenue
169.9166.7(3.2)(1.9%)
Operating Costs
146.7143.1(3.6)(2.5%)
EBITDA
23.223.60.41.6%
Statutory NPAT
10.010.60.55.4%
%
© Gentrack 2023. All rights reserved.
This document is the intellectual property of Gentrack.
Thank you
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.