Gentrack Annual Report 2023
Annual
Report
2023
Gentrack Group Limited
2
Chairman and CEO’s commentary 4
Facts and statistics
10
Gentrack Board of Directors and our leadership
12
Business update
16
Our people
30
Our planet and managing climate related risks
34
Financial statements
40
Corporate governance
80
Corporate directory
95
Contents
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.
Revenue:
$169.9m
Up 34.5% on FY22
Cash:
$49.2m
Up $79.6% over FY22
EBITDA:
$23.2m
Up 185%
Statutory NPAT:
$10m
vs $3.3m loss in FY22
No dividend
payable
Chairman and CEO’s
commentary
4
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.
5
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’ decision to
choose Gentrack’s g2.0
platform to modernise
their business is
a strong vote of
confidence in
our product
investment
strategy.
6
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.
7
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.
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.
8
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
Chairman
Gary Miles
CEO
9
Facts and statistics
customers
worldwide
in product-to-profit
innovation
for utilities
A leader
people within
our center of
engineering
excellence
in India
energy meter
points covered
by our retail
partners in NZ
>50%
10
100+
I&C
leader
in the
UK
Multi-segment
scope across
16 regulatory
environments
(B2B & B2C, water
and energy)
person years of
utility experience
5,000
new
recruits
in FY 23
264
11
16
Our board
Additional roles:
Commissioner, National Infrastructure Commission
Senior Independent Director, Airtel Africa
Chair, WaterAid
Chairman, Lowell
Non-Executive Director and Chair Risk Committee, Link Group (LNK)
Chair, Nominet
Additional roles:
Chair, UniLED
Chair of Governors, The Basildon Academies
Chair, i-media
Non-Executive Director, Disciple Media
Non-Executive Director, Lickd
Nick Luckock
Non-Executive Director
Andy Green, CBE
Chairman
Additional roles:
Board Member, Guardians of New Zealand Superannuation
Board Member and Audit & Risk Committee Chair, Summerset
Group Holdings Ltd (NZX/ASX)
Board Member, Kingfish Limited, Barramundi Limited, Marlin
Global Limited
Board Member, New Zealand Water Polo
Board Member, Freightways Limited (NZX)
Board Member and Audit & Risk Committee Chair, Clarus Group
Fiona Oliver
Audit & Risk Committee Chair
People & Culture Committee Chair
12
Additional roles:
Non-Executive Director,
Objective Corporation
Non-Executive Director, Urbanise
Director, Strategic Outcomes
Stewart Sherriff
Non-Executive Director
Darc Rasmussen
Non-Executive Director
Gary Miles
Chief Executive Officer
13
Our leadership
Gary
Miles
Chief
Executive
Officer
Fran
Caldwell
Chief
People
Officer
Harsh
Agrawal
Vice President,
Head of
Gentrack India
Mike
Carruthers
General
Manager
EMEA
Zeev
Berkowitz
Chief
Operating
Officer
Geoff
Childs
General
Manager
Asia
14
Alasdair
Firth
Chief of
Products
John
Priggen
Chief
Financial
Officer
Mark
Humphreys
General
Manager
Australia
Allan
Sampson
General
Manager
New Zealand
Matt
Loreille
Chief
Marketing
Officer
James
Williamson
Chief
Executive
Officer,
Veovo
15
Energy
In 2023, the energy industry continues
to accelerate its transition towards
a net zero energy future. During the
year, Gentrack played a crucial role
in assisting its energy customers in
seven countries across 16 regulatory
markets. The company enabled leading
retailers to launch innovative offerings
and business models tailored for both
residential and industrial markets.
As a part of our drive to help utilities
transform, we have launched our new
technology stack, g2.0 a cloud native,
composable solution which is picking
up momentum across the industry.
Furthermore, in 2023 Gentrack
announced its plans to expand into
Europe and the Middle East and into
Southeast Asia to bring its capabilities
to retailers in these dynamic and
transforming markets.
16
Business
update:
energy
and water
Australia, New Zealand, Singapore
and the United Kingdom are at the
forefront of the shift towards net zero,
adopting cutting-edge practices in
renewable and decentralised green
energy production and consumption.
In many ways, these markets are
‘living in the future’ in terms of
the energy transition. Leading in
these progressive markets bring us
credibility and capabilities that other
countries will look towards as they
embark on the energy transition.
This section will highlight a subset
of progress we have made across
these exciting markets and provide an
update on our geographic expansion.
With 85% renewable energy sources,
New Zealand is leading the world on
sustainability. Gentrack is pleased to
announce that Genesis in New Zealand
chose Gentrack’s latest product-to-
profit solution, g2.0, to modernise
their entire billing and customer
experience including exciting
programs such as “EVerywhere”
whereby EV owners can charge their
cars outside of their home, within
a Genesis partner network, while
enjoying the energy price of their
home and keeping a single bill.
Together, we enabled the concept
of energy roaming. In New Zealand
we also completed the successful
integration of Mercury’s Trustpower
acquisition and the consolidation
of the two organisations’ consumer
bases onto Gentrack.
Now Mercury offers its consumers
energy and communication bundles
for broadband and mobile services.
Another New Zealand success story is
Pulse Energy which supports a wide
range of energy brands and bundles
including new insurance offerings.
Gentrack, through our leading retail
partners, provides energy retail billing
and customer experiences to more
than 50% of New Zealand’s homes,
EV and industry.
Australia is the country that has the
most decentralised grid worldwide
and the leading rooftop solar
penetration. For EnergyAustralia, we
are pleased to be at the heart of a
ground-breaking initiative aimed at
overcoming the hurdles associated
with the widespread adoption of
solar panels. It is called “Home Solar
Bundle” and it includes the installation
and maintenance of solar panels plus
batteries with a zero upfront cost
investment and a guaranteed energy
price for seven years.
17
transitioning towards a sustainable
future. This involves a deliberate
move away from environmentally
detrimental fossil fuels like oil, coal,
and gas. This steadfast commitment
underscores the industry’s resolve
to adopt cleaner, renewable energy
sources, thereby fostering a more
eco-friendly and resilient energy
landscape. Nevertheless, the path
ahead is extensive and will necessitate
substantial investment and
transformative programs. Gentrack
believes that the majority of utilities
worldwide will take steps to re-
platform their IT infrastructure in the
current decade.
To succeed in their sustainability
mission, utilities must actively engage
in educating and onboarding their
customers into this transformative
journey. They must encourage them
to favour renewable, decentralised, or
even individually produced sources of
renewable energy.
Therefore, transitioning from a basic,
unidirectional flow of energy coming
from major production plants down to
the consumer into a multi-directional,
adaptative flow of energy brings
a brand-new level of complexity
and requires the development of a
sophisticated, real-time and mission-
critical flow of data to orchestrate
the dynamic multi-directional flow of
energy between the various parties.
Another example of customer
excellence is with Red Energy who
holds the highest ranked trusted
Energy Brand in Roy Morgan’s annual
survey for the last 4 years, once
again topped the Canstar Blue
Satisfaction award. Our customer
base continues to grow as more
retailers move to Gentrack.
In the UK, Yu Energy, another Gentrack
customer, is pioneering a new proposal
for enterprises to install EV chargers.
This initiative not only supports
sustainability but also introduces
a new revenue stream by allowing
businesses to lease their electric car
charging points to the public during
non-business hours, effectively
transforming the enterprise into an
energy retailer. Gentrack is a leader in
the SME and I&C markets where our
customers are posting strong gains.
On the platform of our new and
growing Singapore customer base,
we have launched our expansion
into Southeast Asia where we are
building our brand and in discussions
with several retailers about their
transformation priorities. Early in FY24,
and prior to the publication of this
report, we announced our first win
in our global expansion in the middle
east and opened our Middle Eastern
headquarters in Saudi Arabia on the
back of this win.
As generations sensitive to global
warming come of age, the global
energy sector is more resolute
than ever in its commitment to
18
It requires utilities to modernise their
entire IT stack, including:
• Their kWh data metering collection
system, changing from a man-in-a-
van meter reading happening every
6 months to an automated smart
meter collection happening every
5 minutes or less
• Their charging and billing systems to
accommodate new business models
where customers are becoming
producers and selling back energy
• Their customer relationship systems
to deliver a digital first experience,
allowing customers to access
accurate, near-real-time data and
manage their energy consumption
efficiently
• Their energy management systems
Only cutting-edge IT systems, such
as those offered by Gentrack g2.0,
can effectively accommodate the
profound changes occurring in the
industry. Outdated systems from five
to ten years ago lack the flexibility
and adaptability required for this
evolving landscape.
19
Gentrack g2.0 cloud-native, product-
to-profit solution, launched just a
year ago and powered by the latest
technologies and best-practices such
as micro-services, AI/ML, open APIs or
low-code / no-code enables utilities
to evolve towards a smart, data-led,
real-time energy architecture. It
allows them to accommodate new
business models and launch new
market offerings in days or weeks
versus months.
In highly competitive markets, the
ability to innovate and be the first to
market is paramount. In 2023, Gentrack
customers could enjoy the flexibility
of the Gentrack solution to quickly
launch new offerings.
In the fiscal year 2024, we foresee
the pace of innovation in both B2C
and B2B sectors to intensify, and
our new technology stack stands
out as one of the very few solutions
capable of seamlessly adapting
to such substantial changes. Our
proficiency in managing near-
real-time massive data collection,
ensuring robust data protection and
normalisation, our flexible customer
relationship management solution,
and our advanced billing system
capable of handling multi-party billing
scenarios collectively pave the way for
innovation, offering our customers a
dynamic and responsive platform for
their evolving needs.
The Gentrack g2.0
product-to-profit
solution is augmented
by a comprehensive suite
of professional services,
facilitating the transformation,
upgrade, hosting, and operation
of the entire IT stack. This offers a
distinctive value proposition to our
customers. During FY23, three new
customers in the UK decided to adopt
Gentrack Managed Services.
Ultimately, as utilities aim to boost
profitability, they depend on
technology partners like Gentrack to
provide efficient tools that effectively
lower operational costs associated
with managing and supporting their
entire solution. Gentrack g2.0 has
been designed to enable substantial
cost-to-serve reductions through our
high level of automation, fuelled by AI.
We prioritise extensive investments
in integrating AI into our billing and
energy management solutions.
Moreover, as a Salesforce partner,
we inherit significant investments
made by Salesforce in the AI domain,
enhancing our capabilities and
ensuring a forward-looking approach.
20
Water
Water stands
as one of the most
precious resources on earth.
With climate changes exacerbating
the scarcity of clean water and the
ageing state of the systems that
support the clean supply and effective
disposal of water, the industry
faces an imperative to modernise.
This transformation is crucial for
ensuring the preservation and optimal
management of this invaluable
resource throughout its journey – from
extraction to treatment, distribution
and consumption management.
Unlike energy retailers, water
retailers operate within a generally
less competitive environment.
Nevertheless, they are bound by
stringent regulatory and governmental
objectives that include maintaining
rigorous standards in:
21
• Water quality
• Minimising supply interruptions
• Enhancing customer satisfaction
• Implementing effective leakage
control
• Mitigating sewer flooding risks
• Upholding environmental protection
measures
To meet those standards, water
companies will modernise their IT
systems from outdated technology to
modern, cloud-based solutions, such
as those offered by Gentrack.
22
The IT systems that sit at the heart
of many water retailers are simply
old. They are not equipped to provide
many of the digital engagements,
smart metering capabilities and
operational effectiveness that
water companies require. Moreover,
these systems are often moving
to end of life. The transition to re-
platform will be slower than that of
the energy sector, but will happen
at a gradual pace that represents a
huge opportunity for Gentrack. Some
example proof points of modernisation
projects and Gentrack capabilities are
highlighted below.
Following a migration project with
Gentrack, Hunter Water, a major
water retailer in Australia wrote that
“the introduction of our new billing
system has enabled increased focus
on proactive bill validation, leading to
improved bill accuracy”. Hunter Water
was able to enjoy a drop of 72% in their
billing complaints. In addition, they
could see an impressive ramp-up of
their paperless eBilling service, on-
boarding 50,000 customers in just a
few months, giving their customers the
freedom to interact with the service
anytime, more easily and helping save
1.6 tonnes of paper every year.
Earlier this year, the Water
Authority of Fiji (WAF)
engaged Gentrack for
a modernisation
project to
transform the
customer
experience
for Fiji customers but also to deliver
operational cost savings by deploying
more automation and leveraging
AWS cloud technologies. Further
cost savings to WAF are part of the
project through platform services for
managing WAF’s cloud environments.
WAF is responsible for providing water
services to over 800,000 people
across residential, business and
institutional customer segments, and
is one of Fiji’s most important essential
services providers.
This year, Gentrack also completed
the Scottish Water Business Stream
migration and transformation, bringing
two billing systems together onto one
single platform and migrating 600k
business meter points over to the
new system.
As the deployment of smart meters
progresses, water retailers gain
enhanced capabilities to detect
water leaks and forecast water
supply demand more effectively. This
forecasting proficiency facilitates
the optimisation of electricity costs
related to water pumping, resulting
in substantial savings, given that
electricity expenses form a significant
portion of their overall cost structure.
It will also unlock novel business
models and services within the
water industry.
Gentrack technology stands ready
to support our water customers in
navigating and capitalising on the
opportunities presented by this new
era in water services and digital first
customer engagement.
This year, we’ve also made major
strides in both technology and service
provision. We are now delivering a full
managed service to Sydney Airport for
their flight operations. We introduced
LiDAR laser-based sensor technology
to our passenger flow offering,
which has substantially expanded
our coverage of airport areas and
strengthened our competitive position
in this segment. Our AI and machine
learning products have matured
and are currently in operation,
improving journeys and planning
at seven European airports, as well
as optimising the flight turnaround
process at Auckland Airport.
We are already witnessing the
conversion of the strong pipeline
from the past year into new projects
and long-term revenues. This growth
means significant scaling of the
business, and, as a result, we are
actively recruiting across all
functions to create the capacity
required to deliver.
FY24 is going to continue as one
of growth and opportunity. Veovo
strategy is very well aligned with
the market’s increasing need for
digital transformation, and we
expect the business to go from
strength to strength.
FY23 has marked a return to growth
for Veovo as the market rebounds
post-Covid. Passenger numbers
globally have now reached 94.2% of
2019 levels, with many airports around
the world either at, or exceeding, their
pre-Covid levels. Asia Pacific airports
are slightly lagging in their recovery
due to longer-lasting restrictions,
but they are also tracking strongly in
the right direction. This has led to a
revenue growth of 21% with an EBITDA
of 17% for the year.
Airports now face many operational
challenges in bringing back capacity.
This has led operators to focus on
how technology can help them
handle more flights and deliver better
passenger journeys, despite resource
constraints. We are seeing a surge in
demand to accelerate the adoption
of technologies that enable
“Total Airport Management” and
Airport 4.0 concepts.
As a result, our pipeline opportunities
have doubled over the last year. We
have secured deals with five new
airports, including our first Middle
Eastern airport customer. In parallel,
we have signed system upgrades for
other airports across Europe, North
America and the Asia Pacific region.
Business
update:
airports
James Williamson
Chief Executive Officer
23
EnergyAustralia is an energy retailer
and generator with 1.6 million
customers across eastern Australia,
employing 2300 people.
“Our lead out behind the meter
product, the Solar Home Bundle,
changes the landscape for people
wanting secure access to affordable
renewable energy. It puts transitioning
to a solar and battery system in
the home, within reach. Key to the
success of Solar Home Bundle and
our future products is our ability to
deliver a simple and smart experience
for customers that just works. Behind
the scenes of Solar Home Bundle lies
technology that handles the Customer
Journey delivering value aligned with
our keep it simple promise. We look
forward to working with Gentrack to
enhance our customers’ experiences.”
Jess Padman
Interim Head of Customer Assets
EnergyAustralia
Genesis Energy is a diversified
New Zealand energy company selling
electricity, reticulated natural gas
and LPG through its retail brands of
Genesis and Frank Energy and is one of
New Zealand’s largest energy retailers
with 480,000+ customers.
“Selecting Gentrack g2.0 is another
sign of the commitment to providing
market leading customer experiences
and is a significant milestone in the
company’s push toward a simpler,
digitally driven future. What we
like about the g2.0 solution is the
bringing together of two market
leading capabilities in Gentrack and
Salesforce. This powerful combination
will deliver a significant lift in customer
experience through automation
and digitisation of the customer
proposition for our Retail customers.”
Ed Hyde
Chief Transformation and
Technology Officer
Genesis
FY23 highlights:
What our customers
say about us
customers
worldwide
24
PacificLight is a Singapore-based power
generator and electricity retailer.
“Gentrack has been an invaluable
partner for PacificLight Energy and
supported us as we advanced our
capabilities and navigated complex
regulatory changes allowing us to
thrive in the competitive energy market.
Moving forward, we will continue to
work with Gentrack to innovate and
drive positive change in the industry.”
Geraldine Tan
General Manager Retail
PacificLight Energy (PLE)
Edinburgh Airport is Scotland’s busiest
airport and the 6th busiest airport in
the UK. Directly employing around 750
staff with a further 7000 across the
campus, Edinburgh Airport is owned
by Global Infrastructure Partners
(GIP), a leading global, independent
infrastructure investor.
‘’The fast-paced nature of the
airport environment and our business
means we need to have a modern
system that is as agile and efficient
as our operation, which is exactly
what Veovo’s system delivers. We’re
a very data-driven airport, and the
functionality of the Veovo system will
complement our work to improve the
information for passengers and airlines,
as well as respond quickly to potential
issues and make informed plans and
decisions across our campus.”
Denis McIlroy
Head of IT
Edinburgh Airport
The Water Authority of Fiji (WAF) has
engaged Gentrack for a transformation
project to deliver operational cost
savings and transform the customer
experience for Fiji customers.
“We are committed to ensuring that
our customers are served well and their
expectations are met, whether it’s a
service request for a new water and
wastewater connection, water carting
relief, or reporting of a roadside leakage.”
Sekove Uluinayau
Chief Customer Officer
The Water Authority of Fiji (WAF)
25
Maxen Power are commercial
energy specialists, offering flexible,
affordable, and competitive rates for
gas and electricity supplies.
“We know that British businesses are
under pressure at the moment due to
energy costs, so at Maxen Power we
want to do everything we can to lower
costs and provide excellent customer
service. Last year Gentrack moved us
onto their cloud solution which has
resulted in greater efficiencies and
lower cost-to-serve. We are delighted
to commit to the continuation of
this journey with Gentrack, whose
technology helps us to ensure British
businesses get the energy solutions
they need.”
Saima Nawaz
Maxen Power
Marble Power is a critical partner
to businesses in a diverse range
of industries, from metals and
engineering to financial services
and property.
“Gentrack’s world-class technology
enables us to be efficient, innovative,
and able to meet the challenges our
customers will face in the future, all
while delivering better value for those
customers today. Their solution allows
us to focus heavily on delivering great
customer service and better pricing
for our customers.”
Chris Webb
Chief Operating Officer
Marble Power
26
ENGIE is a global energy player with
UK investments in renewable energy
and storage, whilst supplying gas
and electric energy to organisations
of all sizes.
“At ENGIE we are focused on building
the low-carbon energy system
of tomorrow and meeting the
challenges of climate change. With
Gentrack’s market leading meter-to-
cash technology and our portfolio
now migrated to AWS, we have an
ultra-modern platform with which to
accelerate the growth of our solutions
business and stay one step ahead in
the energy sector.”
Kevin Kennedy
Chief Information Officer
ENGIE
PNG Power Ltd (PPL) is a fully
integrated power authority
responsible for generation,
transmission, distribution and
retailing of electricity throughout
Papua New Guinea and servicing
individual electricity consumers.
“Automation of essential processes
and key knowledge transfer to
our team will be a key enabler
for the business as we continue
our transformation journey. The
Gentrack cloud platform will ensure
that PNG Power has a leading
and proven technology on which
we can significantly improve our
customer services, billing, and debt
management activities.”
Mr Obed Batia
Chief Executive Officer
PNG Power Ltd (PPL)
27
Our technology and
design methodology
Solutions for a sustainable future:
28
Integrated customer journeys
100+ pre-configured utilities specific
journeys allowing business users to
quickly build and navigate through
the different stages of the
customer lifecycle.
Low-code / no-code
Modifiability, leveraging low-code /
no-code technology helping to
empower forward-thinking utilities
to create personalised customer
propositions in days not months.
Automation anywhere
Automation by design to drive
down cost-to-serve via elimination
of manual processing, enabling
bottom-line savings, and increased
customer satisfaction.
Multi-play
Availability for multiple segments:
B2C & B2B energy and water.
Right-time processing
Data and flows that are processed
as required.
Measurable outcomes
Proven business KPIs to help reduce
time, increase efficiencies and improve
business performance.
Composable, API by design
Flexibility via a composable and (open)
architecture, with powerful API-first
plug-and-play components allowing
utilities to seamlessly integrate with
3rd party applications and extend the
capabilities of the platform to meet
growing customer needs.
Reliability and scalability
Cloud-native enabling speed and
agility to keep up with changes in
market demands, whilst architected
to have the highest level of security
and scalability.
Design principles
Product-to-profit E2E life cycle
Optimise
business
Serve and Charge
customers
Onboard
customers
Acquire
customers
Define
product offering
Customer Relationship
Management (CRM)
Product Catalogue
Quoting
Ordering
Customer
Engagement
Billing
Invoicing, Payment
Debt Management
Finance
Data Hub
Reporting & Analytics
Profit & Risk
Forecasting
Management
Distributed
Energy Resource
Management
(DERM)
Billing and
Finance
Services and utilities best practices
Business
Optimisation
Sustainability
Innovation
Gentrack
Foundations
Cloud Management
Platform
Open API
Integration
Regulatory
Compliance
100+ customer
journeys
Governance
Security
29
Our people
Our successful growth was achieved
by our coordinated 100+ programs,
an internal head-hunting team and
tailored recruitment events, such as
open evenings on site and FastTrack
days to showcase our culture and
secure the best and most diverse
talent to grow and develop with us.
Our team in India recently celebrated
their 100th colleague – attracting
and retaining talent by delivering the
opportunity to grow with a growing
organisation. Our newly established
office in Singapore continues to grow
in scale, and we recently opened a
new office in Riyadh in the
Middle East to match our
market opportunities and
global growth.
Our continued growth
means we can put our career
pathways into action and
move our talented people into
new roles, this year we saw 15%
of our population promoted into
new opportunities – amplifying their
knowledge and applying our coaching
philosophy to grow teams and peers
around them.
At Gentrack and Veovo, we recognise
that our collective success is built
on our ‘one team, play to win culture’
enabled by our values and People
Power strategy. Our strategy is simple:
enabling and engaging our people,
to achieve the required net people
growth to support our customers
and the planet on their
transformation journeys.
Talent attraction and
net people growth
Across the performance year, we have
expanded into new markets, grown
our core hubs to respond to the
customer demand and welcomed
nearly 300 new Gentrackers and Veovo
colleagues into the group globally.
30
Diversity
We have a diverse group of people that
we attract, support and grow. With
team members from over 40 countries,
all with different backgrounds, cultures
and beliefs – our diverse workforce
makes us the company and culture
we are today. Globally and locally, we
recognise and demonstrate Allyship
by taking opportunities to learn,
collaborate and support one another.
Some examples included our
global campaign for International
Women’s Day where colleagues
promoted their own tagline and
photo describing how they would
#breakthebias; AU Wear it Purple day;
Women Utilities Network investment;
Diwali celebrations across our
sites; Māori language week; NAIDOC
awareness week as well as the local
workshops to continue to build and
implement our DEI strategy.
31
Our Emerge and Evolve are tailored,
accredited leadership programs –
with 25 colleagues per cohort and 3
cohorts underway around the world,
all gaining qualifications to recognise
their leadership skills developed and
endorsed on the 12-month course.
We believe in the amplifying effect
of our leaders and therefore run
multiple internal programs such as
our Quarterly Leadership Forums,
team offsites, webinars and creating
learning opportunities wherever
possible. Our learning ethos is not
only internal – as a company we
sponsor scholarships in New Zealand,
and in the UK we partner with a
foundation that means 30 Gentrackers
currently mentor children from
local schools who come from under
privileged backgrounds with Future
Frontiers about their future career
opportunities.
Development,
engagement and
recognition
Building a collective voice via the
engagement survey is our strategic
gamechanger. It means that within
our functions and locations,
correlated change programs are
positively impacting our engagement,
with our engaged people score
continuing to increase.
Development remains our key
engagement driver and we are
constantly evolving our offering to
develop our people – whatever stage
of their career or tenure they are at
with us.
For our new joiners
in ANZ, 99 colleagues
have all attended our
tailored, in person
Business School –
designed to ensure a fast technical
start, establish an immediate cohort
to collaborate with and have a warm
welcome to the business. Industry
leaders and technical experts in our
business share their expertise and
help our new joiners enter the business
equipped with industry and technical
knowledge to put into practice.
“The Business School meant I felt prepared and confident to
tackle any task I take on – the support and guidance
is amazing.”
ANZ Business School attendee 2023
32
Our engagement programs are
powered by our people. In India the
GenEngage & Gennovators Committees
are the driving force behind Ideathons,
wellness benefits and local tailored
activities to energise our growing
team. Across the globe we all take
shared accountability to build, create
and deliver our change programs and
importantly recognise one another.
This year saw the launch of our
pioneering peer recognition program
– Kudos. Our colleagues are provided
with personal budgets to award and
recognise their colleagues across
the globe for their collaboration;
innovation; excellence; positivity
and storytelling skills. Across our
last performance year our colleagues
have created over 3500 moments
of recognition.
A key event for engagement and
people collaboration is our Global
conference. This year these were
run concurrently in 4 locations (New
Zealand, Australia, India and the UK).
Over 700 colleagues coming together
to connect and collaborate on how, we
as a company can help to Generate a
sustainable future.
Sustainability is at the core of our
values and a key engagement driver
for our people – and the evolution this
year of our sustainability strategy to
support our values of respect of the
planet and our people engagement
has been significant.
33
Respect for our planet
– our sustainability
strategy
Sustainability is at the very heart of
our organisational culture and our
people engagement. We know we play
a key role with our cleantech solutions
in enabling the energy transition
towards a net zero future.
This year saw the launch of our global
sustainability strategy.
Our strategy consists of six key
pillars, shown below, which sit as
the framework we use to drive
sustainability efforts and initiatives
across our organisation. From
engaging with our customers,
through to developing cleantech
solutions. Those cleantech solutions
can support our customers to
achieve their global net zero
ambitions to protect our planet.
Our planet
G
L
O
B
A
L
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
C
H
A
R
T
E
R
S
u
s
t
a
i
n
a
b
i
l
i
t
y
S
t
r
a
t
e
g
y
R
e
s
p
e
c
t
f
o
r
o
u
r
p
l
a
n
e
t
Support our
Partners
We cannot cross the
finish line alone
Develop & Build
Cleantech
We believe in the
power of cleantech
Engage our
Value Chain
We are in this together
and believe in circularity
Enable our
People
We play to win and our
commitment is serious
Make a
Difference
We are one team that
believes in action
Share our
Progress
We take accountability
and show integrity
34
Our carbon footprint
We lead by example and as such, this
year we have measured our Carbon
Footprint globally across Scopes
1 and 2 emissions in accordance
with GHG protocols. As part of our
decarbonisation strategy, we will
continue to reduce our carbon
emissions, waste and water use
whilst complying with all relevant
environmental legislations globally.
These metrics are a key and important
baseline for us and as we continue to
measure and reduce our footprint, we
will be able to show tangible progress.
Empowering our people
in sustainability
We have established
a 40 strong, ‘Global
Sustainability Task
Force’ (GSTF) across
Australia, New Zealand,
UK, India and Singapore.
These teams are directly
empowering change and pioneering
action through local and global
sustainability initiatives so that we
can all deliver our sustainability
strategy in line with our values.
We have multiple programs underway
to deliver our sustainability strategy
and this year, we have seen a focused
effort to reduce Single Use Plastics
(SUPs). Locally, our teams have
collected discarded plastic and
waste from St Kilda beaches, Changi
beach in Singapore and Camden
Canal. In addition, we have led a
‘Keep Camden Clean’ campaign and
participated in education sessions as
well as sponsoring youth programs
to understand the impact of single
use plastic. Together with our People
Power strategy we are living our values
of Respect for our people and planet.
35
Introduction
The first reporting period that Gentrack
will be required to adopt the Aotearoa
New Zealand Climate Standards for
disclosures is for its 2024 Annual
Report. Whilst we have not yet adopted
the standard for this Annual Report,
we have chosen to provide information
that is structured in a manner
reflective of the standard to inform
on the progress Gentrack is making
on this important topic. Gentrack
has partnered with a market leading
climate consultancy, ‘Eight Versa’, that
has provided an independent validation
of our measurements and utilisation
of climate science modelling. This is
enabling us to produce a transparent,
credible and data driven approach to
climate information and action.
Governance
The Audit and Risk Committee (ARC)
now includes ‘Climate’ as a separate
risk category within its pre-existing
risk management practices. The
Sustainability Director has been
appointed as the risk owner. Members
of our executive leadership team
are directly involved in our
sustainability strategy, which
includes the management of
all climate-related
risks and opportunities.
Managing
climate related risks
36
Sustainability
Director
Audit & Risk
Committee
Executive
Leadership
Team
GSTF – IND
(inc. Singapore)
Global Sustainability Task Force
GSTF – NZGSTF – AUSGSTF – UK
Board of
Directors
The GSTF (Global Sustainability Task
Force), chaired by the Sustainability
Director, has regionalised Vice Chair
country leads with teams of at least
8 designated people. It is responsible
for developing and communicating
our sustainability efforts across the
business and provides regular updates
to their respective executives and,
where required, will report to the
ARC through the Global
Sustainability Director.
37
Risk management
Our risk management framework helps
us to identify different categories
of risk e.g., compliance, operational,
reputational, financial, and people risks
and are subject to regular review by
the ARC. Climate risks are contained
in the Risk Register and are reviewed
by the Audit and Risk Committee
as part of this risk management
process. Additionally, to develop
our understanding of climate risk
a climate dedicated risk workshop
and materiality assessment of our
organisation was conducted with
C-Suite stakeholders.
We have intentionally focussed on
assets we retain direct influence and
control over and have excluded value
chain components over which Gentrack
retains no ability to manage risk e.g.
aviation authorities and security
infrastructure, data centre partners
and customer-controlled infrastructure
(meter points).
Strategy
Gentrack used three Shared
Socioeconomic Pathways (SSPs)
1
to
project potential climate impacts and
highlight opportunities and risks. SSPs
1, 2 and 5 were modelled up to 2050.
The scenario analysis identified that
both the physical and transition risks
of climate change are not currently
material to our business operations, yet
our sustainability strategy remains core.
1. SSPs represent changes in population, economic growth,
education, urbanisation, and the rate of technological
development that would affect future greenhouse gas emissions.
The opportunities presented to
enable new and existing customers
in reducing their carbon emissions
through cleantech solutions will remain
for the long term. The table on page 38
expands on the physical and transition
risks mapped during our risk analysis.
The focus of the scenario analysis
was on the next 30 years, to 2050. A
30-year time horizon reflects the long
life of our assets and aligns with New
Zealand’s regulatory aspirations for
NetZero by 2050. For most hazards,
the assessment utilises a 30-year
window from 2023 to 2052 to estimate
risks. However, due to the longer-term
profound impacts of sea level rise, a
more extended window from 2023
to 2100 is employed for that specific
hazard. We quantify short term as up
to 5 years and medium term 5-15 years,
respectively.
Physical and transitional climate-
related risks could have significant
impacts on our markets. Our climate risk
assessment, our ongoing activities to
mitigate the transition risks of climate
change, and our scenario analyses
for the specific risks discussed in this
section, indicate that the transition and
physical risks of climate change are not
currently material to our business. More
so, the opportunities presented, given
our position in the market to act as an
amplifier and enabler for our customers
to expedite their journey to net zero,
are prevalent. We will continue to review
our strategy and develop it further
going forward when we come to adopt
the Climate Reporting Standards in
2024’s Annual Report.
38
Category Detail Opportunity / Risk Time Horizon
Physical
Risk
Acute and
Chronic
physical risks.
Increased frequency and severity of
extreme weather events including tropical
cyclones, flooding, wildfire, drought,
and heatwaves can affect the physical
safety and security of our employees,
our infrastructure for the delivery of our
services and data centers, (e.g., electricity
grid, data network), or our employees’ ability
to perform critical business processes. In
addition, our operational costs may increase
because of shifts in climate patterns, such
as vulnerabilities associated with future
water scarcity due to climate change in
our operating environments. Impacts on
the aviation industry and exposure due to
cessation of flights due to climatic conditions
will also increase risk exposure.
Short term to
medium term
Transition
Risk
Reputational
risk.
Failing to take climate action or being
perceived to be failing to take climate action,
may negatively impact our business and
investor reputation.
Short term
Policy and
legal risk.
Regulation and pricing of GHG emissions,
energy and fuel cost and energy policy
could increase expenses related to our
data centres.
Medium term
Opportunity Expand service
offerings /
leverage our
technology for
climate action.
Invest and deliver innovative cleantech
solutions in efforts to contribute to climate
action. Enable customers to drive climate
action programs through our technology.
Identify and partner with solutions that
amplify our cleantech offerings.
Long term
Enhanced
reporting
infrastructure
on climate
risks.
Continue to develop our governance, risk
management and internal risk reporting
infrastructure, to be able to better
understand and manage climate risks.
Medium term to
long term
Business Unit Emissions Breakdown (tCO
2
e)
New Zealand
65
70605040302010-
12
12
3
2
6
Australia
UK London
UK Tewkesbury
Denmark
Breakdown of Gentrack Scope 1 and 2
emissions by Business Unit.
Scope 2
Scope 1
Metrics and targets
Total Scope 1 and Scope 2 Greenhouse
Gas (GHG) emissions for the
organisation have been calculated by
Eight Versa in accordance with best-
practice methodologies from across
the sector, including the GHG Protocol
and requirements of ISO 14064-1:2018.
In addition, Eight Versa are certified to
have met the international standards
for quality (ISO 9001:2015).
We are currently not in a position to
fully measure Scope 3 emissions (both
upstream and downstream) and are
developing that capability due to
the complexity of accurate Scope 3
reporting. We do not undertake any
carbon offsetting, sequestering or
credit schemes at this time and our
focus is primarily on emission reduction
across the group.
The following locations were measured
and reported against; New Zealand,
Australia, Denmark, UK (London) and UK
Gentrack Group - 2023 Global Carbon
Footprint (Scopes 1 and 2)
Scope 1 Emissions (tCO2e) 6
Scope 2 Emissions –
Location Based (tCO2e)
94
Scope 2 Emissions –
Market Based (tCO2e)
86
Total S1&2 Emissions –
inc. Location Based S2 (tCO2e)
100
Total S1&2 Emissions –
inc. Market Based S2 (tCO2e)
92
39
(Tewkesbury). Our other locations, India,
the USA and Singapore are omitted as
their measurements would fall under
Scope 3 emissions due to these sites
operating out of serviced offices. We
intend to use this data in assisting our
continued measurement and reduction
of our global carbon footprint.
Target setting has been intentionally
omitted from this report as Gentrack
seeks to fully collate and analyse
its carbon emission related metrics,
inclusive of Scope 3 before it does so.
Gentrack Group Limited
Financial
Statements
For the year ended 30 September 2023
40
41
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 47 to 79, which comprise the consolidated statement of
financial position of the Group as at 30 September 2023, and the consolidated statemen
t of
compreh
ensive 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 47 to 79 present fairly, in all material
respects, the consolidated financial posit
ion 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 shareho
lders 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 ordi
nary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
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 47 to 79, which comprise the consolidated statement of
financial position of the Group as at 30 September 2023, and the consolidated statemen
t of
compreh
ensive 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 47 to 79 present fairly, in all material
respects, the consolidated financial posit
ion 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 shareho
lders 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 ordi
nary 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.
42
43
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
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 47 to 79, which comprise the consolidated statement of
financial position of the Group as at 30 September 2023, and the consolidated statemen
t of
compreh
ensive 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 47 to 79 present fairly, in all material
respects, the consolidated financial posit
ion 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 shareho
lders 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 ordi
nary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
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 47 to 79, which comprise the consolidated statement of
financial position of the Group as at 30 September 2023, and the consolidated statemen
t of
compreh
ensive 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 47 to 79 present fairly, in all material
respects, the consolidated financial posit
ion 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 shareho
lders 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 ordi
nary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
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
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
44
45
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
46
GENTRACK FINANCIAL STATEMENTS / 11
Financial
Statements
30 September
2023
47
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 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$000
CURRENT ASSETS
Cash and cash equivalents
4.3
49,18627,387
Trade and other receivables
5.1
37,78929,485
Income tax receivable1232,744
Inventory
5.8
408395
Total current assets87,50660,011
NON-CURRENT ASSETS
Property, plant and equipment
5.5
3,0922,205
Lease assets
9.1
12,6378,560
Goodwill
5.2
109,420106,240
Intangibles
5.4
26,31130,797
Deferred tax assets
7.2
10,6075,478
Total non-current assets162,067153,280
Total assets249,573213,291
CURRENT LIABILITIES
Trade payables and accruals
5.6
8,5916,843
Lease liabilities
9.1
2,2871,675
Contract liabilities13,62212,592
GST payable2,4932,674
Employee entitlements
5.7
19,03314,731
Income tax payable2,748-
Total current liabilities48,77438,515
NON-CURRENT LIABILITIES
Lease liabilities
9.1
15,01811,407
Employee entitlements
5.7
835562
Deferred tax liabilities
7.2
3,5302,899
Total non-current liabilities19,38314,868
Total liabilities68,15753,384
Net assets181,416159,908
EQUITY
Share capital
6.1
196,031194,009
Share-based payment reserve6,1872,877
Foreign currency translation reserve5,965909
Retained earnings(26,767)(37,887)
Total equity181,416159,908
48
49
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GENTRACK FINANCIAL STATEMENTS / 14
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2023
NZ$ 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 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.
20232022
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 activities25,9195,964
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
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.
20232022
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 activities25,9195,964
CASH FLOWS FROM INVESTING ACTIVITIES
Ac quisition of property, plant and equipment
5.5
(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 charge
9.1
(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
50
51
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.
52
53
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 companyDenmark100%100%
Veovo A/S (formally Blip Systems
A/S)
Software development sales
and support
Denmark100%100%
CA Plus Limited
Software development sales
and support
Malta100%100%
Veovo Group LimitedHolding companyNew Zealand100%100%
Gentrack Limited
Software development sales
and support
New Zealand100%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.
2023UTILITYAIRPORTTOTAL
NZ$000NZ$000NZ$000
TIMING OF REVENUE RECOGNITION
Point in time31,5421,99033,532
Over time116,39519,957136,352
Total revenue147,93721,947169,884
Expenditure(128,403)(18,289)(146,692)
Segment contribution (1)19,5343,65823,192
2022UTILITYAIRPORTTOTAL
NZ$000NZ$000NZ$000
TIMING OF REVENUE RECOGNITION
Point in time23,0071,90424,911
Over time85,20316,185101,388
Total revenue108,21018,089126,299
Expenditure(102,294)(15,891)(118,185)
Segment contribution (1)5,9162,1988,114
54
55
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$000NZ$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)
20232022
NZ$000NZ$000
REVENUE BY DOMICILE OF ENTITY
Australia39,54332,463
New Zealand19,82413,300
United Kingdom97,43372,093
Rest of World13,0838,443
Total revenue169,884126,299
REVENUE BY DOMICILE OF CUSTOMER
Australia42,37435,312
New Zealand14,6658,115
United Kingdom95,12871,612
Rest of World17,71711,261
Total revenue169,884126,299
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.
56
57
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$000NZ$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 income35537
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)
58
59
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 accruals1,5832,267
Net working capital movements4,820(3,838)
Net cash inflow from operating activities25,9195,964
20232022
NZ$000NZ$000
Cash at banks21,77925,812
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
60
61
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 amount16,2883,2409716083,61624,723
Expected credit loss allowance76194461184385
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%
62
63
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$000NZ$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 value16,3798,3505,02412292330,797
Cost44,77224,0415,0248352,71977,391
Accumulated amortisation(28,394)(15,691)-(713)(1,796)(46,594)
Net book value16,3798,3505,02412292330,797
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
64
65
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 value4819987262,205
Cost2,1135,1602,1919,464
Accumulated depreciation(1,632)(4,162)(1,465)(7,259)
Net book value4819987262,205
20232022
NZ$000NZ$000
Trade creditors3,4201,634
Sundry accruals5,1715,209
Total trade payables and accruals8,5916,843
20232022
NZ$000NZ$000
CURRENT
Long service leave669605
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 (202
2: $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
66
67
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
68
69
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 issued99,98399,840
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)
20232022
NZ$000NZ$000
INCOME TAX EXPENSE COMPRISES:
Current tax expense9,782166
Deferred tax expense (4,803)(303)
Tax expense/(benefit)4,979(137)
70
71
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
72
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
73
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$000NZ$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 days3,210(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$000NZ$000NZ$000NZ$000
Cash and cash equivalents10,71730,7172,124653379
Trade and other receivables4,02824,912-1,606614
Trade and other payables(597)(3,438)(129)(679)(115)
Net exposure14,14852,1911,9951,580878
2022
Cash and cash equivalents5,96516,0271,17678669
Trade and other receivables5,32619,2501,8261,583442
Trade and other payables(721)(3,815)(63)(60)(53)
Net exposure10,57031,4622,9392,309458
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
74
75
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)
76
77
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
78
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 harges1,069814
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
79
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
80
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Corporate governance | 1
The Board recognises the importance of good corporate governance, particularly its role in delivering improved
corporate performance and protecting the interests of all stakeholders.
The Board is responsible for establishing and implementing the Company’s corporate governance frameworks, and is
committed to fulfilling this role in accordance with best practice while observing applicable laws, and NZX Corporate
Governance guidance.
This section sets out the Company’s commitment to good corporate governance and addresses the Company’s
compliance with the eight fundamental principles of the NZX Corporate Governance Code, 17
th
June 2022
edition (NZX Code).
The Company’s Constitution, the Charters and most of the policies referred to in this Corporate Governance
Statement are available on the Company’s website www.gentrack.com (“Company Website”) in the Governance and
Charters sections of the Investor Centre.
This corporate governance statement is current as at December 2023 and has been approved by the Board.
PRINCIPLE 1 – CODE OF ETHICAL BEHAVIOUR
Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for
these standards being followed throughout the organisation.
The Board maintains high standards of ethical conduct and the Chief Executive Officer is responsible for ensuring that
high standards of conduct are maintained by all staff and for managing any breaches of these standards. The Board
has adopted a “Code of Ethics”, a copy of which is available in the Investor Centre section of the Company’s website.
The Board is the overall and final body responsible for all decision making within the Company, with the core
objective of representing and promoting the interests of shareholders by adding long-term value to the Company.
The Company has a Share Trading Policy for the approval of all share purchases and sales by staff, including Directors.
A
copy of this policy is available in the Investor Centre section of the Company’s website.
The Company undertakes appropriate checks of prospective Directors prior to putting forward a candidate for
election and provides material information in its possession relevant to such a decision to security holders.
PRINCIPLE 2 – BOARD COMPOSITION & PERFORMANCE
To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience and
perspectives.
BOARD CHARTER
This describes the Board’s role and responsibilities and regulates internal Board procedures; a copy of this document
is available in the Investor Centre section on the Company’s website.
The Board directs, and supervises the management of the business affairs of the Company including, in particular:
• ensuring that the Company’s goals are clearly established, and that strategies and resources are in place for
achieving them;
• ensuring that there is an ongoing review of performance against the Company’s strategic objectives;
• approving transactions relating to acquisitions and divestments and capital expenditure above delegated
authority limits;
• ensuring that there is an ongoing assessment of business risks and that there are appropriate control and
accountability systems in place to manage them;
• monitoring the performance of management and overseeing company-wide remuneration, employment and
health and safety practices;
• appointing the Chief Executive Officer, setting the terms of their employment and, where necessary, terminating
their employment;
• approving and monitoring the Company’s financial and other reporting and ensuring the Company’s financial
statements represent a true and fair view; and
• setting the dividend policy.
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NOMINATION AND APPOINTMENT
The procedures for the appointment and removal of Directors are ultimately governed by the Company’s
Constitution. The Board has established a People and Culture Committee whose role is to, amongst other things,
identify and recommend to the Board individuals for nomination as members of the Board and its Committees,
taking into account such factors as it deems appropriate, including experience, qualifications, judgement and the
ability to work with other Directors.
COMPOSITION OF BOARD
As at 30 September 2023 the Board comprised six Directors, as follows:
• Andy Green (Non-executive Chair) – appointed 2 November 2020
• Stewart Sherriff (Non-executive Director) – appointed 5 October 2020
• Gary Miles (Managing Director) – appointed 1 October 2020
• Fiona Oliver (Non-executive Director) – appointed February 2019
• Darc Rasmussen (Non-executive Director) – appointed December 2019
• Nick Luckock (Non-executive Director) – appointed February 2018.
Profiles of each current Director are available in the Investor Centre section on the Company’s website.
The Company has written agreements with each board member establishing the terms of their appointment.
DELEGATION
To enhance efficiency, the Board has delegated some of its powers to Board Committees and other powers to the
Chief Executive Officer. The terms of the delegation by the Board to the Chief Executive Officer are documented in
the Board Charter and more clearly set out in the Company’s Delegated Authority Framework. This
framework also
establishes the authority levels for decision-making within the Company’s management team.
DIRECTOR INDEPENDENCE
The Board Charter requires that at least 50% of Directors be “independent”.
The Board takes into account the guidance provided under the NZX Listing Rules in determining the independence
of Directors.
The Board will review any determination it makes as to a Director’s independence on becoming aware of any
information that may have an impact on the independence of the Director. For this purpose, Directors are required
to ensure that they immediately advise the Board of any relevant new or changed relationships to enable the Board
to consider and determine the materiality of the relationships.
The Board considers that Andy Green, Stewart Sherriff, Fiona Oliver, Darc Rasmussen and Nick Luckock are
Independent Directors.
SELECTION AND ROLE OF CHAIR
The Chair of the Board is elected by the non-executive Directors. The Board supports the separation of the role of
Chair and Chief Executive Officer. The Chair’s role is to manage the Board effectively, to provide leadership to the
Board, and to facilitate the Board’s interface with the Chief Executive Officer.
Andy Green was appointed by the Board as Chair on 2 November 2020. As noted above, Andy Green is an
Independent Director. Andy brings transformation and technology leadership to the role of the Company Chair. In
2020 he was awarded Commander of the British Empire (CBE) for his contributions to the Information Technology
and British Space Industries. His passion to transform the industry to support sustainable water and energy resources
is further demonstrated by his roles as the Chair of WaterAid UK and as a UK National Infrastructure Commissioner.
Andy spends his time in both Australia and the UK which contributes both a local presence and global perspective
to the Company’s customers and shareholders.
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DIVERSITY AND INCLUSION POLICY
The Company continues to promote all forms of Diversity with a Diversity and Inclusion policy that is available on the
Investor Centre and on the Company’s website and a Company strategy focused on promoting Diversity, Inclusion and
Belonging approved by the Board. Details of our approach can be found in the People section on page 30.
At 30 September 2023, the gender breakdown for the Company (and its wholly owned subsidiaries) was as follows:
BOARD
SENIOR EXECUTIVES
ALL EMPLOYEES
FY2 3
Female 1 1 217
Male
5 9 530
Non-Binary
1
% Female
17% 10% 29%
FY2 2
Female 1 2 160
Male
5 8 423
Non-Binary
1
% Female
17% 20% 27%
These figures include permanent full-time, permanent part-time and fixed-term employees, but not independent
contractors or consultants. A Senior Executive is defined as an employee who reports directly to the Chief Executive
Officer. The Company recruits for predominantly technology roles.
DIRECTOR EDUCATION
All Directors are responsible for ensuring they remain current in understanding their duties as Directors. Directors are
provided access to the Company’s online knowledge hub.
RETIREMENT AND RE-ELECTION
The Board acknowledges and observes the relevant Director rotation/retirement rules under the NZX Listing Rules.
DIRECTORS’ SHARE OWNERSHIP
The table of Directors’ shareholdings is included in the Disclosures section of this Annual Report.
INDEMNITIES AND INSURANCE
Deeds of Indemnity have been granted by the Company in favour of the Directors in relation to potential liabilities
and costs they may incur for acts or omissions in their capacity as Directors.
The Directors’ and Officers’ Liability insurance covers risks normally covered by such policies arising out of acts or
omissions of Directors and employees in their capacity as such.
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BOARD MEETINGS
The Board has a standard schedule which includes a minimum of six meetings per annum. In addition other board
meetings are held as needed to deal with specific matters such as acquisition related activity. In the year ended 30
September 2023 there were nine Board meetings in total. There were also separate meetings of the Board
Committees. Directors receive detailed information in Board papers to facilitate decision making. At each meeting the
Board considers key financial and operational information as well as matters of strategic importance.
Executives regularly attend Board meetings and are also available to be contacted by Directors between meetings.
Directors who are not members of the Committees are invited to attend all meetings of the Committees.
BOARD
AUDIT AND RISK
COMMITTEE
PEOPLE AND CULTURE
COMMITTEE
DIRECTOR
NO. OF
MEETINGS
NO.
ATTENDED
NO. OF
MEETINGS
NO.
ATTENDED
NO. OF
MEETINGS
NO.
ATTENDED
Andy Green 9 9 6 6 5 4
Fiona Oliver 9 9 6 6 5 5
Darc Rasmussen
9 9 6 6 - 5
Stewart Sherriff
9 9 - - 5 5
Nick Luckock
9 8 - - 5 5
Gary Miles
9 9 - 2 - 2
Attendance at Committee meetings of Directors who are not Committee members is included in the table above.
Membership of the Board Committees is set out below.
The Board has a broad range of IT, financial, sales, business, risk management and other skills and expertise necessary
to meet its objectives.
BOARD ACCESS TO INFORMATION AND ADVICE
The Company Secretary is responsible for supporting the effectiveness of the Board by ensuring that policies and
procedures are followed and co-ordinating the completion and dispatch of the Board agendas and papers.
All Directors have access to the senior management team to discuss issues or obtain information on specific areas in
relation to items to be considered at Board meetings or other areas as they consider appropriate. Further, Directors
have unrestricted access to Group records and information.
The Board, the Board Committees and each Director have the right, subject to the approval of the Chair, to seek
independent professional advice at the Company’s expense to assist them to carry out their responsibilities. Further,
the Board and Board Committees have the authority to secure the attendance at meetings of outsiders with relevant
experience and expertise.
CONFLICTS OF INTEREST
The Board Charter outlines the Board’s policy on conflicts of interest. Where conflicts of interest do exist, Directors
excuse themselves from discussions and do not exercise their right to vote in respect of such matters.
PERFORMANCE REVIEW
The last formal review of the Board’s performance was undertaken in September 2021. The Board is currently
reviewing its composition ahead of the 2024 Annual Meeting.
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PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this will enhance its effectiveness in key areas, while still retaining
board responsibility.
BOARD COMMITTEES
The Board has established two Committees: the Audit and Risk Committee, and the People and Culture Committee.
The Charters of each Committee are in the Investor Centre section of the Company’s website.
The membership of each Committee at 30 September 2023 was:
1. Audit and Risk Committee – Fiona Oliver (Chair), Andy Green (ex-officio), Darc Rasmussen
2. People and Culture Committee – Fiona Oliver (Chair), Andy Green (ex-officio), Stewart Sherriff, Nick Luckock.
All of the members of the above committees are independent directors. Management and other employees attend
committee meetings at the invitation of the respective committee.
For further details on the functions of the Audit and Risk Committee please refer to “Principle 7”. For further details on
the functions of the People and Culture Committee please refer to “Principle 2” and “Principle 5”.
The Board finalised a Takeover Response Protocol in 2018. The Protocol outlines the procedures in the event the
Company is subject to a takeover offer.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in financial and non-financial reporting, and in the timeliness and balance of
corporate disclosures.
The Company is committed to maintaining a fully informed market through effective communication with the NZX
and ASX, the Company’s shareholders, analysts, media and other interested parties. The Company provides all
stakeholders with equal and timely access to material information that is
accurate, balanced, meaningful
and consistent.
The Board has adopted a Market Disclosure Policy and a Shareholder Communications Policy, copies of which are
available in the Investor Centre section on the Company’s website. The Policies have been communicated internally to
ensure that they are strictly adhered to by the Board and the Company’s employees. The Company has been listed on
the NZX Main Board and the ASX since 25 June 2014 and has at all times complied with its continuous
disclosure obligations.
Directors consider at each Board meeting whether there is any material information which should be disclosed to
the market.
The “Code of Ethics”, Board Committee Charters and other key governance documents are available in the Investor
Centre section of the Company’s website.
Environmental, social and governance factors are an important focus for the Board and additional non-financial reporting
on these factors, other than as set out in this statement can be found on pages 34-39.
PRINCIPLE 5 – REMUNERATION
The remuneration of Directors and executives should be transparent, fair and reasonable.
The Board has a People and Culture Committee. One of that Committee’s principal functions is to oversee the
remuneration strategies and policies of the Company. The People and Culture Committee is governed by a formal
charter, a copy of which is available in the Investor Centre section on the Company’s website.
DIRECTOR REMUNERATION
The Company distinguishes the structure of non-executive Directors’ remuneration from that of executive Directors.
Total Directors’ fees are currently set at a maximum of $800,000 per annum for the non-executive Directors. The actual
amount of fees paid in the past year was $665,000.
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CORPORATE GOVERNANCE
Corporate governance | 6
CEO REMUNERATION
Gary Miles’ salary is structured as follows:
Fixed Base Salary
For FY2023 Gary has a Fixed Base Salary of UK£403,000 per annum, exclusive of pension contributions of 4% of base
salary and reviewable at the Board’s discretion annually after the release of the full year results.
Annual Incentive Plan
On target performance is eligible for an annual incentive payment of 100% of the fixed base salary. The actual
annual incentive payment (if any) is determined at the discretion of the Board after assessing the performance of the
Company and the performance of the CEO against performance targets and priorities agreed annually. For FY2023,
those performance targets were based on a score card of measures incorporating financial performance against
budget; employee engagement and attrition; new customer wins and technology advancement. His short-term
incentive payment for FY23 was £423,150.
Long Term Incentive
The CEO’s remuneration package includes the issue of performance rights that were approved at the Annual Meeting
in February 2021 and then amended at the Annual meeting in February 2023:
• an initial grant of 500,000 performance rights of which half vested immediately on the start of Gary’s employment
and the other half of which vested on 1 October 2021. The vesting of this initial grant of performance rights was
not subject to vesting conditions or performance hurdles.
• an annual grant of performance rights commencing in October 2020 that is calculated and vests in accordance
with the following:
• number of performance rights = Z /Y
• “Z” = Gary’s annual base pay, including pension contribution, converted into NZD and multiplied by 120%; and
• “Y” = the volume weighted average price of Gentrack’s shares over the 10 day trading period ending on the last
trading day immediately prior to the annual grant
• The first annual grant of performance rights vested on 1st October 2021 in accordance with the agreed criteria
• Subsequent annual performance rights vest one third each year over three years with half of rights eligible to vest
each year subject to Gentrack Group achieving certain performance hurdles and the other half of rights eligible
to vest doing so without reference to performance hurdles. The performance hurdles for the grant on 31
st
October 2021 is based on the compound annual growth rate of Gentrack’s earnings per share as follows:
• below 7%, no performance rights subject to performance hurdles will vest;
• equal to 7%, 50% of performance rights subject to performance hurdles will vest;
• equal to or above 12%, all performance rights subject to performance hurdles will vest; and
• between 7% and 12% performance rights will vest on a straight line basis between 50% and 100%;
• The performance hurdle for the grant on 31
st
October 2022 is based on the share price appreciation:
• Below 7% no performance rights subject to performance hurdles will vest;
• Equal to 7% 50% of performance rights subject to performance hurdles will vest;;
• Equal to or above 10%, all performance rights subject to performance hurdles will vest; and
• Between 7% and 10% performance, the percentage of performance rights to vest will be calculated on a
straight-line basis.
The Remuneration Policy Statement is available in the Investor Centre section of the Company’s website.
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CORPORATE GOVERNANCE
Corporate governance | 7
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding of the material risks faced by the issuer and how to manage them.
The Board should regularly verify that the issuer has appropriate processes that identify and manage potential and
material risks.
The Board has an Audit and Risk Committee that reports to the Board – please see “Principle 7” below for further
detail in relation to the Audit and Risk Committee.
The Company’s senior management maintain a Risk Register, which is reviewed by the Audit and Risk Committee and
forms a key part of the risk management framework.
To support its commitment to Information Security Management, the Company is ISO/EC 27001:2013 certified. This is
an international standard which helps organisations manage and control information security risks. The Company also
maintains a Services Organisation Control “SOC2” Type I Report in respect of the security and availability controls over
applicable Gentrack Cloud services which is then assessed by an independent third-party auditor.
The Company does not have an internal audit function, but through the steps outlined above the Board ensures the
company is reviewing, evaluating and continually improving the effectiveness of its risk management and internal
control processes.
The Company considers that it has a low exposure to economic risks, because the sectors we serve are essential
services that do not react significantly to economic cycles, and it considers that it does not have any material exposure
to environmental and social sustainability risks. The Board receives regular updates on health and safety and
information security.
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and independence of the external audit process.
The Board is committed to a transparent system for auditing and reporting of the Company’s financial performance. The
Board established an Audit and Risk Committee, which performs
a central role in achieving this goal. The members of the
Committee provide a balance of independence, sector experience and relevant professional experience and qualifications.
The Audit and Risk Committee’s principal functions are:
• to assist the Board in fulfilling its responsibilities for the Company’s financial statements and external financial reporting;
• to assist the Board in ensuring that the ability and independence of the external auditors to carry out their statutory
audit role is not impaired, or could reasonably be perceived to be impaired;
• to assist the Board in ensuring appropriate accounting policies and internal controls are established and maintained; and
• to assist the Board in ensuring the efficient and effective management of all business risks.
One of the main purposes of the Audit and Risk Committee is to ensure the quality and independence of the audit
process. The Chairman of the Audit and Risk Committee and Chief Financial Officer work with the external auditors to
plan the audit approach. All aspects of the audit are reported back to the Audit and Risk Committee and the auditors are
given the opportunity at Audit and Risk Committee meetings to meet with the Board.
The Audit and Risk Committee has adopted a formal Charter, a copy of which is available in the Investor Centre section
on the Company’s website.
The Audit and Risk Committee meets regularly to identify risks and determine how to mitigate these. The Company uses
external contractors as required for specific audit reviews.
The Company’s external auditors will attend the annual meeting, and are available to answer questions relating to the
conduct of the external audit and the preparation and content of the auditor’s report.
The Company does not have an internal audit function. Where required, such audit activity is conducted by third parties,
not by the Company’s external auditors.
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CORPORATE GOVERNANCE
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PRINCIPLE 8 – SHAREHOLDER RIGHTS & RELATIONS
The Board should respect the rights of shareholders and foster constructive relationships with shareholders that
encourage them to engage with the issuer.
The company currently keeps shareholders informed through:
• the annual report;
• the half-year update;
• the annual meeting of shareholders;
• disclosure to the NZX and ASX in accordance with the Company’s Shareholder Communications Policy and Market
Disclosure Policy; and
• the Investor Centre section on the Company’s website.
The Company’s Shareholder Communications Policy and Market Disclosure Policy are designed to ensure that
communications with shareholders and all other stakeholders are managed efficiently. The Chair, Chief Executive
Officer and Chief Financial Officer are the points of contact for shareholders and analysts.
The Board considers the annual report to be an essential opportunity for communicating with shareholders. The
company publishes its results and reports electronically on the Company Website. Investors may also request a hard
copy of the annual report by contacting the Company’s share registrar, Link Market Services Limited. Contact details
for the registrar appear at the end of this report.
The Company considers the annual meeting to be a valuable element of its communications programme. The Chair
will provide an opportunity for shareholders to raise questions for their Board. The Chair may ask the Chief Executive
Officer and any relevant manager of the Company to assist in answering questions if required. As noted earlier, the
Company’s external auditors will also attend the annual meeting, and are available to answer questions relating to the
conduct of the external audit and the preparation and content of the auditor’s report.
The Company held a Special Meeting of shareholders on 10 October 2023 to consider changes to the Company’s
senior management incentive scheme. The Company gave less than 20 working days’ notice of the meeting was
given in order to ensure that the long-term incentive arrangements are in place as close as possible to the start of
the FY24 financial year.
ENTRIES RECORDED IN THE INTERESTS REGISTER
The Company maintains an Interest Register in accordance with the Companies Act 1993. The following entries were
made in the Interests Register for the period 1 October 2022 to 30 September 2023 and require disclosure:
• Fiona Oliver advised that she had been appointed as a Guardian of the NZ Superannuation Board from 23
March 2023
• On 28 March 2023 Andy Green advised that he ceased to be Vice Chair/Trustee of the UK Disasters Emergency
Committee. Other current interests include Chair, Lowell Group, Senior Independent Directors Airtel Africa and
non-executive director Link Administration Holdings Li mited
• Darc Rasmussen advised that he had been appointed a director of Urbanise.com Limited from 18 April 2023.
SHAREHOLDINGS OF DIRECTORS AT 30 SEPTEMBER 2023
TYPE OF HOLDING
2023
RELEVANT INTEREST
IN SHARES HELD
2022
RELEVANT INTEREST
IN SHARES HELD
Gary Miles
Direct 887,468 797,657
Andy Green Beneficial Interest 113,002 46,026
Darc Rasmussen
Beneficial Interest 2,000 2,000
Stewart Sherriff
Beneficial Interest 20,000 --
Fiona Oliver
Beneficial Interest 2,070 --
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CORPORATE GOVERNANCE
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REMUNERATION OF DIRECTORS
Details of the total remuneration of, and the value of other benefits received by, each Director of Gentrack Group
Limited during the financial year ended 30 September 2023 are as follows:
2023
2022
Andy Green
300,000 300,000
Fiona Oliver 110,000 110,000
Nick Luckock
85,000 42,500
Stewart Sherriff
85,000 85,000
Darc Rasmussen
85,000 85,000
TOTAL
665,000 622,500
Gary Miles remuneration is disclosed under Principle 5 above.
Until 31 March 2022, Nick Luckock was a partner at Hg Capital (which was a substantial shareholder of the company until June
2021) and neither Nick nor Hg Capital received any remuneration for his services as a Director during the first half of FY2022.
From 1 April 2022 Nick now receives $85,000 pa (so $42,500 in FY2022).
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CORPORATE GOVERNANCE
Corporate governance | 10
EMPLOYEE REMUNERATION
The number of current employees of the parent and subsidiaries receiving remuneration and benefits above
$100,000 in the year ended 30 September 2023 are set out in the table below:
REMUNERATION
NUMBER OF
EMPLOYEES
$100,000 - $110,000 28
$110,001 - $120,000 25
$120,001 - $130,000
34
$130,001 - $140,000
34
$140,001 - $150,000
30
$150,001 - $160,000
25
$160,001 - $170,000
24
$170,001 - $180,000
20
$180,001 - $190,000
27
$190,001 - $200,000
14
$200,001 - $210,000
10
$210,001 - $220,000
6
$220,001 - $230,000
8
$230,001 - $240,000
6
$240,001 - $250,000
9
$250,001 - $260,000
3
$260,001 - $270,000
4
$270,001 - $280,000
3
$280,001 - $290,000
4
$290,001 - $300,000
2
$300,001 - $310,000
1
$310,001 - $320,000
1
$320,001 - $330,000
2
$330,001 - $340,000
1
$370,001 - $380,000
1
$410,001 - $420,000
1
$440,001 - $450,000
1
$450,001 - $460,000
1
$460,001 - $470,000
1
$5 10,001 - $5 20,000
1
$560,001 - $570,000
1
$570,001 - $580,000
1
$600,000 - $610,000
1
$980,001 - $990,000
1
$1,880,001 - $1,890,000
1
The analysis above includes the remuneration and benefits paid to employees, in the relevant bandings, where their
annual remuneration and benefits exceed $100,000.
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CORPORATE GOVERNANCE
Corporate governance | 11
ANALYSIS OF SHAREHOLDING
The analysis of shareholding by size of holding as at 3 November 2023 is:
SIZE OF HOLDING
NUMBER OF HOLDERS
FULLY PAID ORDINARY
SHARES NUMBER OF
SHARES
% OF ISSUED CAPITAL
1 – 1,000
1246 574,579 0.56
1,001 – 5,000
1276 3,3081,79 3.24
5,001 – 10,000
345 2,541,931 2.49
10,001 – 50,000
240 4,902,737 4.81
50,001 – 100,000
48 3,530,243 3.46
Greater than 100,000
47 87,145,853 85.43
TOTAL 3,202 102,003,522 100
TWENTY LARGEST SHAREHOLDERS
The twenty largest shareholders of fully paid ordinary shares as at 3 November 2023 were:
NAME
NUMBER OF
ORDINARY
SHARES HELD
% OF ISSUED SHARE
CAPITAL
HSBC Nominees (New Zealand) Limited 13,542,423 13.28
Citibank Nominees (NZ) Ltd 10,357,107 10.15
BNP Paribas Nominees NZ Limited 10,328,701 10.13
Citicorp Nominees Pty Limited 8,874,053 8.7
J P Morgan Nominees Australia Pty Limited 6,058,813 5.94
Anacacia Pty Ltd 5,802,010 5.69
HSBC Custody Nominees (Australia) Limited 4,918,280 4.82
BNP Paribas Nominees Pty Ltd 3,813,009 3.74
National Nominees Limited 2,919,111 2.86
Mirrabooka Investments Limited 2,866,414 2.81
Accident Compensation Corporation 2,812,736 2.76
Custodial Services Limited 1,695,092 1.66
BNP Paribas Nominees (NZ) Ltd 1,353,086 1.33
Gary Miles 986,679 0.97
New Zealand Depository Nominee 957,634 0.94
Gracey Family Investments Pty Ltd 850,000 0.83
Amcil Limited 772,502 0.76
Melissa Gaik Teng Hong 583,189 0.57
Qexle Limited 500,000 0.49
Terence De Montalt Maude & Wendy Fay Wood 500,000 0.49
TOTAL 80,490,839 78.92
The percentage shareholding of the 20 largest shareholders of Gentrack Group Limited fully paid ordinary shares
was 78.92%.
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CORPORATE GOVERNANCE
Corporate governance | 12
SUBSTANTIAL SHAREHOLDERS AS AT 30 SEPTEMBER 2023
According to notices given under the Financial Markets Conduct Act 2013 the following persons were Substantial
Shareholders in Gentrack Group Limited at 30 September 2023 in respect of the number of voting securities set
opposite their names.
NAME
NUMBER OF
ORDINARY SHARES
HELD
% OF ISSUED SHARE
CAPITAL
Milford Asset Management Limited
14,234,400 14.1
National Nominees Ltd ACF Australian Ethical
Investment Limited
12,482,230 12.38
Swann Hill BV
9,533,201 9.49
Anacacia Pty Ltd (As Trustee for the Wattle Fund)
6,727,010 6.69
NAOS Asset Management Limited 4,742,998 4.70
TOTAL 47,719,839 47.36
The total number of issued voting shares of Gentrack Group Limited at 30 September 2023 was 100,798,161.
Voting at a meeting of the shareholders is via a poll. At the meeting, every shareholder present in person, or by
representative has one vote for each fully paid ordinary share in the Company.
At 30 September 2023, there were 137 shareholders holding marketable parcels of less than A$500.
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CORPORATE GOVERNANCE
Corporate governance | 13
John Priggen, Allan Sampson
John Priggen, James Williamson, Gary Miles, Hayden Davies
John Priggen, Mark Humphreys
John Priggen, Mark Humphreys
John Priggen, Geoffrey Childs, K Kalaai Araasi Pillai
John Priggen, Amol Ganpati Mainkar (TMF), Anugraha Mundra (TMF)
Mike Carruthers
James Williamson, John Priggen, Peter
James Williamson
John Priggen, James Williamson
John Priggen, James Williamson, Hayden Davies
John Priggen, James Williamson
John Priggen, James Williamson, Hayden Davies
SUBSIDIARY COMPANY DIRECTORS
The following people held office as Directors of subsidiary companies at 30 September 2023:
Gentrack Limited
Veovo Group Limited
Gentrack Group Australia Pty Limited
Gentrack Pty Limited
Gentrack UK Limited
Gentrack Holdings UK Limited
Junifer Systems Limited (not trading)
Gentrack (Singapore) Pte Ltd
Gentrack Software Private Ltd
Gentrack Information Systems Technology
Veovo Holdings Denmark
Veovo AS
CA Plus Limited
Evolve Analytics Limited (not trading)
Evolve Parent Limited (not trading)
Veovo Inc
Veovo NZ Limited (trading from 1 October 2020)
Veovo UK Limited (trading from 1 October 2020)
Veovo IP Limited (trading from 1 October 2020)
The following former Directors of the Company’s subsidiaries ceased to hold office during the year:
Allan Sampson from Gentrack (Singapore) Pte Ltd.
Directors of the Company’s subsidiaries do not receive any remuneration or other benefits in respect of
their appointments.
93
DONATIONS
The Company made donations of $18,494 during the year ended 30 September 2023.
CREDIT RATING
The Company has no credit rating.
FOREIGN EXEMPT LISTING
ASX approved a change in the Company’s ASX admission category from an ASX Listing to an ASX Foreign Exempt
Listing, effective from the commencement of trading on 30 March 2016.
The Company continues to have a full listing on the NZX Main Board, and the Company’s shares are still listed on
the ASX. The Company is primarily regulated by the NZX, complies with the NZX Listing Rules, and is exempt from
complying with most of the ASX Listing Rules (based on the principle of substituted compliance).
WAIVERS
NZX RegCo granted Gentrack Group Limited a waiver from the requirement for the Company to include an appraisal
report with its 2021 Notice of Meeting in respect of the resolution relating to the issue of performance rights to its
Managing Director under Listing Rule 7.8.5. The terms of the waiver can be found on the Company’s announcement
page on the NZX website (https://www.nzx.com/companies/GTK/announcements)
ANNUAL MEETING
Gentrack Group Limited’s Annual Meeting of Shareholders will be held on 28 February 2024. A notice of Annual
Meeting and Proxy Form will be circulated to shareholders in January 2023.
94
Corporate directory
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 910
0
Postal address
PO Box 3288, Shortland Street,
Auckland 1140
New Zealand
Level 15, 628 Bourke Street, Melbourne,
VIC 3000 Australia
New Zealand incorporation
number
3768390
Australian registered body
number (ARBN)
169 195 751
Directors
Andy Green, Chair
Fiona Oliver
Nick Luckock
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
95
www.gentrack.com© 2023 Gentrack. All rights reserved.
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 today’s 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.
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.