Annual Results for the year ended 30 September 2024
Gentrack Group Ltd
17 Hargreaves Street, St Marys Bay Auckland 1011,
PO Box 3288, Auckland 1140, New Zealand
Ph: +64 9 966 6090
Email: info@gentrack.com
www.gentrack.com
Gentrack Group Ltd | ARBN 169 195 751
Results for announcement to the market
Name of issuer Gentrack Group Limited
Reporting Period 12 months to 30 September 2024
Previous Reporting Period 12 months to 30 September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$213,242 25.5%
Total Revenue $213,242 25.5%
Net profit/(loss) from
continuing operations
$9,546 (5%)
Total net profit/(loss) $9,546 (5%)
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend payable
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.72 $0.45
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to the market
announcement, financial statements, and investor presentation
attached
Authority for this announcement
Name of person
authorised
to make this announcement
Anna Ellis
Contact person for this
announcement
Anna Ellis
Contact phone number +64 9 966 6090
Contact email address Anna.ellis@gentrack.com
Date of release through MAP
26/11/2024
Audited financial statements accompany this announcement.
---
Gentrack Group Ltd
17 Hargreaves Street, St Marys Bay Auckland 1011,
PO Box 3288, Auckland 1140, New Zealand
Ph: +64 9 966 6090
Email: info@gentrack.com
www.gentrack.com
Gentrack Group Ltd | ARBN 169 195 751
26 November 2024
Market Announcement
Gentrack Group Limited (NZX/ASX: GTK), a leading provider of software solutions for
utilities and airports, today released its results for the full-year to 30 September 2024.
Results Summary
• Revenue: $213.2m: up 25.5% v FY23 and up 50% when excluding $27.6m of
one-off revenues in FY23 from insolvent customers.
• EBITDA: $23.6m v $23.2m in FY23 (FY24 impacted by a $7.1m charge against
payroll costs on the Group’s LTI schemes due to the significant growth in our
share price and the accelerated amortisation of these costs).
• Statutory NPAT: $9.5m v $10.0m in FY23
• Cash: $66.7m: $17.5m increase in the year after $12.9m Amber investment in
H1’24.
• No Dividend payable
Overview
Gentrack’s market segments of energy, water and airports are growth markets
providing essential services.
Gentrack’s mission in utilities is to help the world accelerate towards a net zero future
by supporting the global modernisation of energy and water retailers. Gentrack has
c690 committed utility professionals who are passionate about this purpose. They
work tirelessly to demonstrate our leadership in this dynamic landscape as utilities
world-wide embark on their transformation journey.
Strong revenue growth comes in part from doing more with our current customers as
they innovate. They face a myriad of drivers for system change including regulatory
and competitive dynamics; data insights from real time smart meter interactions; time
of use pricing; great customer experience; new operating models; and per capita
water consumption targets.
Additionally, we have four new utility customers in FY24, including new wins in Saudi
Arabia and the Philippines. We now have utility customers in eight countries. The
pipeline of new opportunities continues to develop and, as we said in our May 2024
earnings forecast, we are targeting further wins in FY25 in our current markets and
new territories.
Separately, our Airports Division, Veovo, which operates in 23 countries and over 140
airports, is playing a leading role in the digitization and modernisation of the industry.
We have a top-class team and great technology with over 90 professionals in the
division.
We expect continued progress at Veovo. With almost no customer churn, continued
new wins (such as FY24 wins of Manchester Airports Group and the airports of Saudi
Arabia) add depth to our recurring revenue base. We expect to secure renewals,
upsells and new wins from our strong pipeline in FY25.
2
Financial performance
For the Group, revenues increased 25.5% over the prior year period to $213.2m. In
our Utilities business, total revenue grew by 23% to $181.3m. Underlying Utilities
revenue, excluding $27.6m of revenue in FY23 from insolvent customers, grew by
51%. Upgrades and other customer transformations, new customer wins and strong
demand for innovation and change from across our customer base helped drive our
non-recurring revenues 104% higher to $60m. Whilst wins and upsells from prior
periods increased our recurring revenues by 33% to $121.3m.
New customer wins in the UK and the Middle East have powered Veovo to a 45.5%
increase in revenue over the prior period to $31.9m. The project work to implement
these wins alongside upgrades from existing customers have driven non-recurring
revenues 101% higher v prior year to $15.7m. This includes $6.8m ($2.0m in FY23) of
revenue from sales of hardware sourced from our supplier network. Customer wins
and upgrades from prior periods have also pushed recurring revenues 15% higher to
$16.3m.
EBITDA at $23.6m ($23.2m in FY23) includes $7.1m booked against expected payroll
tax on the Group’s LTI schemes (compared to $0.3m in FY23). This follows the strong
rise in our share price across the year. The tax is based on the share price at vesting.
Furthermore, for LTI awards to management made at the start of FY24 more shares
vest and vest earlier when the share price is higher and so we are now amortising most
of this expected cost over two rather than three years.
We have continued to increase investment in strategic R&D, all of which has been
expensed, as well as increase our sales & marketing spend to support our international
expansion.
Our NPAT of $9.5m ($10m in FY23) includes a $1.3m loss being our share of the losses
of Amber in which we acquired a 10% stake during the year. Alongside our equity we
hold a seat on Amber’s Board and so account for this investment as an associate
company within our financial statements.
Gentrack continues to deliver strong cash generation. Our cash as of 30 September
2024 was $66.7m, a $17.5m increase over the start of the year, after investing $12.9m
in Amber.
Gentrack’s Utilities and Veovo businesses both operate in high growth and
consolidating markets. Today the Board believes 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. We will keep the use of capital under regular review.
Bringing Value to our Energy and Water Customers
Gentrack and our customers are also consistently recognised as leading and shaping
the industry’s change. Some examples include:
Red Energy, which has been the Canstar Leading Energy Supplier for 13 years in a row
in Australia, the world’s most dynamic energy market.
Ecotricity, which is Citizens Advice Customer Experience leader in the UK, the world’s
most competitive energy market.
3
Mercury who won the New Zealand CIO Awards from global market intelligence firm,
IDC for Business Transformation through IT.
g2.0 and other Technology Updates
The g2.0 technology strategy, with Salesforce’s Energy and Utility Cloud embedded,
is resonating very well with our existing and potential customers. A recent testament
to this has been g2.0 winning three prestigious awards at the Asian Business Review
Awards 2024 for Enterprise Software Energy, Enterprise Software Utilities, and ESG
Tech Utilities.
In November 2023, Genesis Energy selected our g2.0 solution to modernise their
business and we are making good progress in this transformation program which will
remain a key program across FY25. Upgrade discussions with parts of our customer
base are underway and new customer sales are on g2.0.
We have a strong and exciting technology roadmap for FY25. We continue to invest
in data solutions for better AI insights and automation as well as a broad range of
sellable, add on functionality that energy and water customers need as they transform
and innovate.
We continue to invest in products in areas such as dynamic pricing and propositions
for distributed energy sources such as battery optimisation for industry, homes, and
electric vehicles. Our minority investment in Amber accelerates our roadmap in this
key energy transition domain. Amber is an Australian based technology company and
energy retailer that gives customers direct access to real time energy prices and the
technology to automate their home batteries and EVs. Their product is augmenting
our solution well and we see encouraging interest in the combined Gentrack and
Amber solution. We are pleased to have achieved our first win on a joint Gentrack and
Amber solution in Europe.
We also work with other distributed resources management technology suppliers to
bring the right energy solution to our customers in this nascent market.
Veovo’s Leading Technology Capabilities
Veovo has had another strong year of growth. Airports have returned to 2019
passenger numbers and that has meant a drive for technology to deliver more
capacity and better journeys.
FY24 has seen a number of big projects for Veovo. We have had major success in the
Middle East with large contracts in Saudi Arabia for our Passenger Predictability
products and the delivery of Airport Billing in Dubai. In the UK, Manchester Airport
Group has selected Veovo for Passenger tracking and Queue measurement across all
their airports.
We continue to have excellent customer retention, with upgrades to our Gen8
platform for airport operations being rolled out in New Zealand, Australia, the UK, and
North America. This is driving both growth and cementing Veovo’s incredible record
for customer retention.
4
We expect Veovo to continue this strong story in FY25, with current projects becoming
operational and a strong pipeline of opportunities with existing and new customers.
Climate Statement
Our FY24 Annual Report will include our first Climate Statement under New Zealand
climate related disclosures regime. We believe that our technologies can play a key
role in accelerating a sustainable future for the planet. Our platforms support
automation and operational efficiency at airports. At Utilities, we deliver customer
centric solutions that can help end customers adopt greener solutions to advance the
energy transition.
Looking Forward
Both the utilities and airports industries are transforming at pace. They are dynamic
markets in a state of change, and we are confident in our ability to lead these markets
globally over time.
We would like to thank our customers and shareholders for their continued support,
and the entire Gentrack team for their achievements and for their commitment to
Gentrack’s future.
Outlook
We remain confident of our mid-term guidance of growing revenue more than 15%
CAGR and an EBITDA margin of 15-20% after expensing all development costs.
In FY25, we expect both Utilities and Veovo to show continued revenue growth and
EBITDA improvement, the extent of which will depend on when business
opportunities close in the year. We will look to provide further guidance on FY25
outlook later in the financial year.
Presentation Results
Investors are invited to join the presentation of the Full Year Results on Tuesday 26th
November 2024 at 10.30am NZDT/ 8.30am ADST via webcast:
URL Link: www.virtualmeeting.co.nz/gtkfy24
It is advised that attendees allow ten minutes prior to the start time to register and
download any necessary webcast software. To join via audio only, please see details
here: https://gentrack.com/full-year-results-announcement-date-2024/
ENDS
5
Contact details regarding this announcement:
Anna Ellis
Company Secretary
Gentrack Group Limited
+64 9 966 6090
About Gentrack
We are entering a new era, with utilities worldwide transforming to meet business and
sustainability targets. For over 35 years Gentrack has been partnering with the world’s
leading utilities, and more than 60 energy and water companies rely on us.
Gentrack, with our partners Salesforce and AWS, are leading 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. https://www.gentrack.com
---
Jo:
Gentrack Group Limited
Financial
Statements
For the year ended 30 September 2024
GENTRACK FINANCIAL STATEMENTS / 2
Contents
3 Management Commentary
6 Auditor’s Report
9 Directors’ Responsibility Statement
10 Financial Statements
11 Statement of Comprehensive Income
12 Statement of Financial Position
13 Statement of Changes in Equity
14 Statement of Cash Flows
15 Notes to the Financial Statements
45 Corporate Directory
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 3
Overview
Gentrack’s market segments of energy,
water and airports are growth markets
providing essential services.
Gentrack’s mission in utilities is to help the
world accelerate towards a net zero future
by supporting the global modernisation of
energy and water retailers. Gentrack has
c690 committed utility professionals who
are passionate about this purpose. They
work tirelessly to demonstrate our
leadership in this dynamic landscape as
utilities world-wide embark on their
transformation journey.
Strong revenue growth comes in part from
doing more with our current customers as
they innovate. They face a myriad of drivers
for system change including regulatory and
competitive dynamics; data insights from
real time smart meter interactions; time of
use pricing; great customer experience;
new operating models; and per capita water
consumption targets.
Additionally, we have four new utility
customers in FY24, including new wins in
Saudi Arabia and the Philippines. We now
have utility customers in eight countries. The
pipeline of new opportunities continues to
develop and, as we said in our May 2024
earnings forecast, we are targeting further
wins in FY25 in our current markets and new
territories.
Separately, our Airports Division, Veovo,
which operates in 23 countries and over 140
airports, is playing a leading role in the
digitization and modernisation of the
industry. We have a top-class team and
great technology with over 90 professionals
in the division.
We expect continued progress at Veovo.
With almost no customer churn, continued
new wins (such as FY24 wins of Manchester
Airports Group and the airports of Saudi
Arabia) add depth to our recurring revenue
base. We expect to secure renewals, upsells
and new wins from our strong pipeline in
FY25.
Financial performance
For the Group, revenues increased 25.5%
over the prior year period to $213.2m. In
our Utilities business, total revenue grew by
23% to $181.3m. Underlying Utilities
revenue, excluding $27.6m of revenue in
FY23 from insolvent customers, grew by
51%. Upgrades and other customer
transformations, new customer wins and
strong demand for innovation and change
from across our customer base helped drive
our non-recurring revenues 104% higher to
$60m. Whilst wins and upsells from prior
periods increased our recurring revenues by
33% to $121.3m.
New customer wins in the UK and the
Middle East have powered Veovo to a
45.5% increase in revenue over the prior
period to $31.9m. The project work to
implement these wins alongside upgrades
from existing customers have driven non-
Revenue: $213.2m: up 25.5% v FY23 and up 50% when excluding
$27.6m of one-off revenues in FY23 from insolvent customers.
EBITDA: $23.6m v $23.2m in FY23 (FY24 impacted by a $7.1m charge
against payroll costs on the Group’s LTI schemes due to the significant
growth in our share price and the accelerated amortisation of these costs).
Statutory NPAT: $9.5m v $10.0m in FY23
Cash: $66.7m: $17.5m increase in the year after $12.9m Amber
investment in H1’24.
No Dividend payable
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 4
recurring revenues 101% higher v prior year
to $15.7m. This includes $6.8m ($2.0m in
FY23) of revenue from sales of hardware
sourced from our supplier network.
Customer wins and upgrades from prior
periods have also pushed recurring
revenues 15% higher to $16.3m.
EBITDA at $23.6m ($23.2m in FY23)
includes $7.1m booked against expected
payroll tax on the Group’s LTI schemes
(compared to $0.3m in FY23). This follows
the strong rise in our share price across the
year. The tax is based on the share price at
vesting. Furthermore, for LTI awards to
management made at the start of FY24
more shares vest and vest earlier when the
share price is higher and so we are now
amortising most of this expected cost over
two rather than three years.
We have continued to increase investment
in strategic R&D, all of which has been
expensed, as well as increase our sales &
marketing spend to support our
international expansion.
Our NPAT of $9.5m ($10m in FY23) includes
a $1.3m loss being our share of the losses of
Amber in which we acquired a 10% stake
during the year. Alongside our equity we
hold a seat on Amber’s Board and so
account for this investment as an associate
company within our financial statements.
Gentrack continues to deliver strong cash
generation. Our cash as of 30 September
2024 was $66.7m, a $17.5m increase over
the start of the year, after investing $12.9m
in Amber.
Gentrack’s Utilities and Veovo businesses
both operate in high growth and
consolidating markets. Today the Board
believes 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. We will keep the use of capital
under regular review.
Bringing Value to our Energy and Water
Customers
Gentrack and our customers are also
consistently recognised as leading and
shaping the industry’s change. Some
examples include:
Red Energy, which has been the Canstar
Leading Energy Supplier for 13 years in a
row in Australia, the world’s most dynamic
energy market.
Ecotricity, which is Citizens Advice Customer
Experience leader in the UK, the world’s
most competitive energy market.
Mercury who won the New Zealand CIO
Awards from global market intelligence firm,
IDC for Business Transformation through IT.
g2.0 and other Technology Updates
The g2.0 technology strategy, with
Salesforce’s Energy and Utility Cloud
embedded, is resonating very well with our
existing and potential customers. A recent
testament to this has been g2.0 winning
three prestigious awards at the Asian
Business Review Awards 2024 for Enterprise
Software Energy, Enterprise Software
Utilities, and ESG Tech Utilities.
In November 2023, Genesis Energy selected
our g2.0 solution to modernise their
business and we are making good progress
in this transformation program which will
remain a key program across FY25.
Upgrade discussions with parts of our
customer base are underway and new
customer sales are on g2.0.
We have a strong and exciting technology
roadmap for FY25. We continue to invest in
data solutions for better AI insights and
automation as well as a broad range of
sellable, add on functionality that energy
and water customers need as they transform
and innovate.
We continue to invest in products in areas
such as dynamic pricing and propositions
for distributed energy sources such as
battery optimisation for industry, homes,
and electric vehicles. Our minority
investment in Amber accelerates our
roadmap in this key energy transition
domain. Amber is an Australian based
technology company and energy retailer
Chairman and CEO’s Commentary
GENTRACK FINANCIAL STATEMENTS / 5
that gives customers direct access to real
time energy prices and the technology to
automate their home batteries and EVs.
Their product is augmenting our solution
well and we see encouraging interest in the
combined Gentrack and Amber solution.
We are pleased to have achieved our first
win on a joint Gentrack and Amber solution
in Europe.
We also work with other distributed
resources management technology
suppliers to bring the right energy solution
to our customers in this nascent market.
Veovo’s Leading Technology Capabilities
Veovo has had another strong year of
growth. Airports have returned to 2019
passenger numbers and that has meant a
drive for technology to deliver more
capacity and better journeys.
FY24 has seen a number of big projects for
Veovo. We have had major success in the
Middle East with large contracts in Saudi
Arabia for our Passenger Predictability
products and the delivery of Airport Billing
in Dubai. In the UK, Manchester Airport
Group has selected Veovo for Passenger
tracking and Queue measurement across all
their airports.
We continue to have excellent customer
retention, with upgrades to our Gen8
platform for airport operations being rolled
out in New Zealand, Australia, the UK, and
North America. This is driving both growth
and cementing Veovo’s incredible record
for customer retention.
We expect Veovo to continue this strong
story in FY25, with current projects
becoming operational and a strong pipeline
of opportunities with existing and new
customers.
Climate Statement
Our FY24 Annual Report will include our first
Climate Statement under New Zealand
climate related disclosures regime. We
believe that our technologies can play a key
role in accelerating a sustainable future for
the planet. Our platforms support
automation and operational efficiency at
airports. At Utilities, we deliver customer
centric solutions that can help end
customers adopt greener solutions to
advance the energy transition.
Looking Forward
Both the utilities and airports industries are
transforming at pace. They are dynamic
markets in a state of change, and we are
confident in our ability to lead these markets
globally over time.
We would like to thank our customers and
shareholders for their continued support,
and the entire Gentrack team for their
achievements and for their commitment to
Gentrack’s future.
Andy Green, CBE Gary Miles
Chairman CEO
A member firm of Ernst & Young Global Limited
Independent Auditor’s Report
To the shareholders of Gentrack Group Limited - Report on the audit of the
financial statements
Opinion
We have audited the financial statements of Gentrack Group Limited (the “Company”) and its
subsidiaries (together the “Group”) on pages 11 to 44, which comprise the consolidated statement of
financial position of the Group as at 30 September 2024, and the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended of the Group, and the notes to the consolidated financial
statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 11 to 44 present fairly, in all material
respects, the consolidated financial position of the Group as at 30 September 2024 and its
consolidated financial performance and cash flows for the year then ended in accordance with New
Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company’s shareholders,
as a body, for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Ernst & Young provides statutory filing services to Veovo A/S. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the
business of the Group. We have no other relationship with, or interest in, the Group.
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.
A member firm of Ernst & Young Global Limited
Page 2
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 $213 million.
Accounting for the portion of revenue related to
software implementation projects of $64 million
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 NZ
IFRS 15, 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 2024 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.
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.
A member firm of Ernst & Young Global Limited
Page 3
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
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
25 November 2024
DIRECTORS RESPONSIBILITY STATEMENT
GENTRACK FINANCIAL STATEMENTS / 9
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 25 November 2024.
For and on behalf of the Board of Directors:
Andy Green
Fiona Oliver
Chairman
Date: 25 November 2024
Director
Date: 25 November 2024
GENTRACK FINANCIAL STATEMENTS / 10
Financial
Statements
30 September
2024
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 11
*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.
20242023
SECTION
NZ$000NZ$000
Revenue
3.1,3.2
213,242169,884
Expenditure
3.4
(189,657)(146,692)
Profit before depreciation, amortisation, other income,
financing, foreign exchange gain or loss and tax
23,58523,192
Depreciation and amortisation
3.5
(8,993)(8,451)
Profit before other income, financing, foreign exchange
gain or loss and tax
14,59214,741
Other Income
3.3
1,6931,574
Foregin exchange gains/(losses)36(184)
Finance expense(1,497)(1,461)
Finance income1,131355
Share of loss of an associate
2.4
(1,339)-
Profit before tax14,61615,025
Income tax expense
7.1
(5,070)(4,979)
Profit attributable to the shareholders of the company9,54610,046
OTHER COMPREHENSIVE INCOME*
Other comprehensive income that may be reclassified to profit
or loss in subsequent periods (net of tax):
Share of other comprehensive profit of an associate2.4252-
Translation of international subsidiaries3,4175,056
Total comprehensive profit for the period13,21515,102
EARNINGS PER SHARE ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE COMPANY
(EXPRESSED IN DOLLARS PER SHARE)
Basic earnings per share
6.4
$0.09$0.10
Diluted earnings per share
6.4
$0.08$0.10
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES ISSUED
Basic
6.4
103,11299,983
Diluted
6.4
113,828103,566
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 12
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 25 November 2024.
Andy Green Fiona Oliver
Chair Director
Date: 25 November 2024 Date: 25 November 2024
20242023
SECTION
NZ$000NZ$000
CURRENT ASSETS
Cash and cash equivalents
4.3
66,67949,186
Trade and other receivables
5.1
44,43437,789
Income tax receivable167123
Inventory
5.8
576408
Total current assets111,85687,506
NON-CURRENT ASSETS
Property, plant and equipment
5.5
2,8983,092
Lease assets
9.1
12,82312,637
Goodwill
5.2
111,955109,420
Intangibles
5.4
21,51026,311
Investment in an associate
2.4
11,801-
Deferred tax assets
7.2
14,84010,607
Total non-current assets175,827162,067
Total assets287,683249,573
CURRENT LIABILITIES
Trade payables and accruals
5.6
11,9338,591
Lease liabilities
9.1
2,7382,287
Contract liabilities17,05613,622
GST payable2,7512,493
Employee entitlements
5.7
22,68619,033
Income tax payable1,6262,748
Total current liabilities58,79048,774
NON-CURRENT LIABILITIES
Lease liabilities
9.1
14,41715,018
Employee entitlements
5.7
3,897835
Deferred tax liabilities
7.2
2,7763,530
Total non-current liabilities21,09019,383
Total liabilities79,88068,157
Net assets207,803181,416
EQUITY
Share capital
6.1
200,698196,031
Share-based payment reserve11,7386,187
Foreign currency translation reserve9,3825,965
Retained earnings(14,015)(26,767)
Total equity207,803181,416
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 13
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
2024
NZ$ 000
SECTION
Balance as at 1 October196,0316,187 (26,767)5,965 181,416
--9,546-9,546
Other comprehensive income--2523,4173,669
--9,7983,417 13,215
TRANSACTION WITH OWNERS
--2,954-2,954
Issue of share capital
6.1
4,667(4,667)---
Share-based payments
6.2
-10,218--10,218
Balance at 30 September200,698 11,738 (14,015)9,382 207,803
Excess income tax benefit on share-
based payments
Profit 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
2023
NZ$ 000
SECTION
Balance as at 1 October194,0092,877 (37,887)909 159,908
--10,046-10,046
Other comprehensive income---5,0565,056
-- 10,0465,056 15,102
TRANSACTION WITH OWNERS
--1,074-1,074
Issue of share capital
6.1
2,022(2,022)---
Share-based payments
6.2
5,332--5,332
Balance at 30 September196,0316,187 (26,767)5,965 181,416
Excess income tax benefit on share-
based payments
Total comprehensive income for
the period, net of tax
SHARE
CAPITAL
SHARE
BASED
PAYMENT
TOTAL
EQUITY
Profit attributable to the
shareholders of the company
RETAINED
EARNINGS
TRANSLATION
RESERVE
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 14
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
20242023
SECTION
NZ$000NZ$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers212,672165,301
Payments to suppliers and employees(171,654)(137,647)
Income tax paid(6,632)(1,735)
Net cash inflow from operating activities34,38625,919
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment
5.5
(1,087)(1,958)
Investment in an associate
2.4
(12,888)-
Net cash outflow from investing activities(13,975)(1,958)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for lease liabilities
9.1
(2,534)(1,634)
Lease liability finance charge
9.1
(1,108)(1,069)
Interest paid(389)(392)
Interest received1,131355
Net cash outflow from financing activities(2,900)(2,740)
Net increase in cash held17,51121,221
Foreign currency translation adjustment(18)578
Cash at beginning of the financial period49,18627,387
Closing cash and cash equivalents66,67949,186
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 15
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 Gentrack Group Limited (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 2024. Prior year comparatives are for the year ended 30 September 2023.
The financial statements of Gentrack Group for the year ended 30 September 2024 were authorised for issue in
accordance with a resolution of the directors on 25 November 2024.
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 2024
GENTRACK FINANCIAL STATEMENTS / 16
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 CURRENCY TRANSLATION RESERVE (FCTR)
Gentrack Group translates the results of its foreign operations from their functional currencies to the presentation
currency using the closing exchange rate at balance date for assets and liabilities and the average monthly exchange
rates for income and expenses. The difference arising from the translation of the statement of financial position at the
closing rates and the statement of comprehensive income at the average rates is recorded within the foreign currency
translation reserve within the statement of changes in equity.
2.3 BUSINESS COMBINATIONS
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on
which control is transferred to Gentrack Group. Control is the exposure or right to variable returns from involvement with
the entity and the ability to affect those returns through power over the entity.
Gentrack Group recognises the fair value of all identifiable assets, liabilities, and contingent liabilities of the acquired
business. Goodwill is measured as the excess cost of the acquisition over the recognised assets and liabilities. When
the excess is negative (negative goodwill), the amount is recognised immediately in the statement of comprehensive
income.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 17
2.3 BUSINESS COMBINATIONS (CONTINUED)
Gentrack Group has not made any acquisitions during the year ended 30 September 2024 or 2023. For details of
acquisitions made in prior years refer to the 2018 Annual Report.
2.4 INVESTMENT IN ASSOCIATES
An associate is an entity over which Gentrack Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over those
policies.
On January 31, 2024, Gentrack Group finalised a subscription deed, obtaining a 10% stake in Amber Holding
Corporation Pty Limited (Amber). Amber’s primary business activities are software sales and energy retail. The Group
has a seat on Amber’s Board. According to NZ IAS 28 Investment in Associates , Gentrack’s presence on Amber’s
Board signifies the existence of Gentrack’s significant influence over Amber, leading Gentrack Group to use of the
equity method of accounting for its interest in Amber in the consolidated financial statements.
Amber’s financial year ends in June. To align with Gentrack Group’s financial reporting, Amber's financial statements
are adjusted to match the corresponding reporting period. The accounting policies of Amber are consistent with
Gentrack Group's policies. As a result, no additional adjustments are required when recognising and measuring
Gentrack Group’s share of Amber's profit or loss after the acquisition date.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 18
2.5 GROUP INFORMATION
The financial statements include the following subsidiaries:
In October 2024, Gentrack France SAS, a wholly owned subsidiary of Gentrack UK Limited, was incorporated to
support the Gentrack Group in software development and sales initiatives.
ENTITYPRINCIPAL ACTIVITY
COUNTRY OF
INCORPORATION
SHAREHOLDING
2024
SHAREHOLDING
2023
Gentrack Group Australia Pty
Limited
Holding companyAustralia100%100%
Gentrack Pty Limited
Software sales and
support
Australia100%100%
Veovo Holdings (Denmark) ApS Holding 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) Limited Holding 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%100%
Gentrack (Singapore) Pte Limited
Software sales and
support
Singapore100%100%
Veovo Inc
Software sales and
support
United State of
America
100%100%
Veovo NZ Limited
Software sales and
support
New Zealand100%100%
Veovo UK Limited
Software sales and
support
United Kingdom100%100%
Veovo IP LimitedSoftware development New Zealand100%100%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 19
2.6 IMPACT OF STANDARDS ISSUED BUT NOT YET ADOPTED
The External Reporting Board has issued NZ IFRS 18 Presentation and Disclosure in Financial Statements, FRS 44
Disclosure of Fees for Audit Firms’ Services, as well as amendments to existing international accounting standards.
Gentrack Group will adopt NZ IFRS 18 and FRS 44 when mandatory and does not expect NZ IFRS 18 and FRS 44 to
have a material impact on its financial statements.
There were no other new effective standards adopted on 1 October 2023 that had a material impact on the financial
statements.
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.
In the table below we split the revenues between point in time and over time recognition: Over time recognition is
when the fulfilment of our obligation to provide goods and services and the customer’s ability to obtain the benefit
from that occurs continuously over a period of time. Point in time recognition is where that happens at a point in time.
Revenue recognised over time include annual fees, support services and project revenues recognised over the stages
of completion. Revenue recognised at a point in time includes the part of our managed services revenue which is
recognised when the customer benefits have been confirmed and, within our airport segment (also referred to as the
Veovo business) hardware sales included as part of the implementation of a project.
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.
2024UTILITYAIRPORTTOTAL
NZ$000NZ$000NZ$000
TIMING OF REVENUE RECOGNITION
Point in time29,0256,79935,824
Over time152,28525,133177,418
Total revenue181,31031,932213,242
Expenditure(163,064)(26,593)(189,657)
Segment contribution (1)18,2465,33923,585
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 20
3.1 OPERATING SEGMENTS (CONTINUED)
(1) Segment contribution is defined as profit before depreciation, amortisation, other income, financing, foreign
exchange gain or loss and tax.
A reconciliation of segment contribution to profit attributable to the shareholders of the company is as follows:
In 2024, Gentrack Group generated $24.6m from a single utility customer domiciled in the United Kingdom (2023:
$26.4m).
20242023
NZ$000NZ$000
Segment contribution (1)23,58523,192
Depreciation and amortisation(8,993)(8,451)
Other Income1,6931,574
Foreign exchange gains/(losses)36(184)
Finance expense(1,497)(1,461)
Finance income1,131355
Share of loss of an associate(1,339)-
Income tax expense(5,070)(4,979)
Profit attributable to the shareholders of the company9,54610,046
20242023
NZ$000NZ$000
REVENUE BY DOMICILE OF ENTITY
Australia51,38839,543
New Zealand34,61719,824
United Kingdom105,89297,433
Rest of World21,34513,083
Total revenue213,242169,884
REVENUE BY DOMICILE OF CUSTOMER
Australia55,25242,374
New Zealand26,98214,665
United Kingdom98,76395,128
Rest of World32,24517,717
Total revenue213,242169,884
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 21
3.2 OPERATING REVENUE
Gentrack Group recognises revenue from customers when the performance obligation has been
accomplished. A performance obligation is accomplished when the customer has received all the benefits
promised under the performance obligation. The following sections detail the type of revenue recognised
within each category.
Revenue recognition involves certain revenue streams being recognised based on the stage of completion.
This process uses estimations of time required to complete the project and is based on detailed information
on hours worked to date, prior experience, and project scheduling tools. Gentrack Group employs project
managers to provide regular information to management on the progress of all projects. All estimates are reviewed
by management prior to revenue recognition.
Contract assets are initially recognised for revenue earned from services in progress and are reclassified to trade
receivables on stage of completion. Contract assets are subject to impairment assessments.
Contract liabilities are recognised if a payment is received, or a payment is due (whichever is earlier) from a customer
before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the
Group performs under the contract.
Contract assets and contract liabilities typically are recognised as trade receivables and revenue (respectively) within
a 12-month period.
ANNUAL FEES
Annual fees include software support and maintenance charged on software licenses and software subscriptions.
Revenue from annual fees is generally recognised over the period the benefits are consumed by the customer.
SUPPORT SERVICES
Support services are post implementation value-add professional services related to ongoing upgrades, minor
software revisions and extended support. Support services revenue is recognised when the service is complete or on
a stage of completion basis.
LICENSES
Revenue from license fees is recognised when the customer can benefit from the licensed software. License fees that
are highly interrelated with project services are recognised based on a stage of completion of the project.
PROJECT SERVICES
Revenue from project services is recognised based on the stage of completion of the project. This is typically in
accordance with the achievement of contract milestones and/or hours expended and forecast hours to complete the
project.
MANAGED SERVICES
Managed Services includes revenues where Gentrack uses its own software and expertise, on behalf of customers, to
deliver either improvements in the energy reconciliation process or supporting customers with billing and
operational back-office processes. Revenue is recognised when the service is complete or over the period that the
benefits are consumed by the customer.
OTHER
Other revenue is primarily revenue from hardware and the recharge of ad-hoc costs that are recharged to customers.
Revenue from hardware sales is recognised when the hardware has been delivered to the customer.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 expected
to be 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.
*We have reclassified some amounts within financial year 2023 to more appropriately reflect our expenditure.
Employment entitlements and advertising & marketing are $0.7m and $0.2m lower respectively; and consulting and
subcontracting is $0.9m higher than previously disclosed.
20242023
NZ$000NZ$000
OPERATING REVENUE:
Annual fees68,98972,673
Support services38,49128,276
Project services64,13334,763
Licenses4,757490
Managed sevices30,06731,630
Other6,8052,052
Total operating revenue213,242169,884
20242023
NZ$000NZ$000
PROFIT / (LOSS) BEFORE TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Employee entitlements*135,497108,572
Administrative costs7,8516,567
Third party customer-related costs21,3049,897
Advertising and marketing*2,2552,634
Consulting and subcontracting*16,09713,801
Other operating expenses6,6535,221
Total expenditure189,657146,692
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 23
3.4. EXPENDITURE (CONTINUED)
Included in the total expenditure above, Gentrack Group has expensed $22.7m in Research and Development
expenditure (2023: $21.9m). 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 over their estimated useful lives,
from the date that they are available for use.
3.6. NET FINANCE EXPENSES
Finance income comprises interest income 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, 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.
20242023
NZ$000NZ$000
DEPRECIATION EXPENSE
Depreciation on property plant and equipment1,3001,059
Depreciation on lease assets9.12,1831,793
3,4832,852
AMORTISATION EXPENSE
Amortisation5,5105,599
5,5105,599
Total depreciation and amortisation8,9938,451
20242023
SECTION
NZ$000NZ$000
FINANCE INCOME
Interest income1,131355
1,131355
FINANCE EXPENSE
Interest expense(389)(392)
Lease liability finance charges9.1(1,108)(1,069)
(1,497)(1,461)
Net finance expense(366)(1,106)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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,
at which time the Group intends to replace or extend this facility.
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 2024 $Nil (2023: $Nil) of the facility has been drawn down.
20242023
SECTION
NZ$000NZ$000
RECONCILIATION OF OPERATING CASH FLOWS WITH NET PROFIT AFTER TAX:
Profit after tax9,54610,046
ADJUSTMENTS FOR NON-CASH ITEMS
Deferred tax
7.2
(2,066)(3,667)
Impairment provision - Trade receivables(486)(230)
(Gain)/Loss on foreign exchange transactions(38)184
Share based payments10,2185,209
Interest expense
3.6
389392
Interest income
3.6
(1,131)(355)
Lease liability finance charges
3.6
1,1081,069
Depreciation and amortisation
3.5
8,9938,451
Share of loss of an associate1,339-
Non-cash items18,32611,053
ADD/(DEDUCT) MOVEMENTS IN OTHER WORKING CAPITAL ITEMS:
Increase in trade and other receivables(5,308)(7,373)
(Increase)/Decrease in tax payable(1,189)5,337
Increase/(Decrease) in GST payable146(283)
Increase in contract liabilities3,3401,206
Increase in employee entitlements6,2804,350
Increase in trade payables and accruals3,2451,583
Net working capital movements6,5144,820
Net cash inflow from operating activities34,38625,919
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 25
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.
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of between one day and three months, depending on the immediate cash requirements of Gentrack
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
Financial Instruments 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.
*Financial year 2023 has been updated to separate contract assets related balance from volume discounts.
20242023
NZ$000NZ$000
Cash at banks33,28521,779
Short-term deposits33,39427,407
Total cash and cash equivalents66,67949,186
20242023
NZ$000NZ$000
Trade receivables28,02128,402
Impairment provision - Expected credit loss(317)(296)
Impairment provision - Specific provision(967)(3,264)
Provision for volume discounts*(91)(160)
Contract assets*12,4018,944
Sundry receivables and prepayments5,3874,162
Total trade and other receivables44,43437,789
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 26
5.1. TRADE AND OTHER RECEIVABLES (CONTINUED)
MOVEMENT IN TRADE RECEIVABLES IMPAIRMENT PROVISION
Most of the impairment provision is reflective of B2C energy suppliers in the United Kingdom that went into
administration during 2022 and 2021.
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.
20242023
NZ$000NZ$000
Opening balance3,5604,009
Increase in impairment provision21135
Amounts received(443)(699)
Effect of movement in foreign exchange63129
Bad debt written off(1,917)(14)
Total trade receivables impairment provision1,2843,560
2024
CURRENT
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 amount18,6247,42392151,04728,021
Expected credit loss allowance9311338072317
2023
CURRENT
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
20242023
NZ$000NZ$000
Opening balance109,420106,240
Exchange rate differences2,5353,180
Net book value111,955109,420
Goodwill allocated to Utilities109,055106,520
Goodwill allocated to Veovo2,9002,900
Net book value111,955109,420
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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. Financial year 2024 Weighted Average Cost of Capital (WACC) is an
average of the latest rates used by the analysts that cover Gentrack (2023 WACC was 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 2024. Under management’s projections this would need to drop below 0% 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 FY24 for the Utilities business of 22.6% (2023:
36.7%).
For the Veovo business, the carrying value of the CGU is below the annual cashflow being generated by this business
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
2024
Terminal Growth
Rate 2024
WACC
2023
Terminal Growth
Rate 2023
Utilities9.8%2.6%10.2%1.9%
Veovo9.8%2.6%11.0%1.9%
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 acquired 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. No changes were made to useful lives and residual values during financial year 2024. Acquired source
code and internal use software are categorised as software in the below table.
2024
SOFTWARE
CUSTOMER
RELATIONSHIP
S
BRAND
NAMES
TRADEMARK
S
CAPITALISED
DEVELOPMENT
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Opening balance13,8357,070 5,024-382 26,311
Amortisation(3,415)(1,725)--(370)(5,510)
Movement in foreign exchange468239--2709
Closing net book value10,8885,584 5,024-14 21,510
Cost47,52725,4325,0249052,82081,708
Accumulated amortisation(36,639)(19,848)-(905)(2,806)(60,198)
Net book value10,8885,584 5,024-14 21,510
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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.
2023
SOFTWARE
CUSTOMER
RELATIONSHIP
S
BRAND
NAMES
TRADEMARK
S
CAPITALISED
DEVELOPMENT
TOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Opening balance16,3798,350 5,024122923 30,797
Amortisation(3,272)(1,652)-(124)(551)(5,599)
Movement in foreign exchange728372-2101,112
Closing net book value13,8357,070 5,024-382 26,311
Cost46,30524,8155,0248742,77479,792
Accumulated amortisation(32,470)(17,745)-(874)(2,392)(53,481)
Net book value13,8357,070 5,024-382 26,311
2024
FURNITURE &
EQUIPMENT
COMPUTER
EQUIPMENT
LEASEHOLD
IMPROVEMENTS
TOTAL
NZ$000NZ$000NZ$000NZ$000
Opening balance5421,6359153,092
Additions771,00281,087
Depreciation(89)(1,090)(121)(1,300)
Disposal(9)(12)(1)(22)
Movement in foreign exchange925741
Net book value5301,5608082,898
Cost1,2275,0011,4247,652
Accumulated depreciation(697)(3,441)(616)(4,754)
Net book value5301,5608082,898
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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, payroll taxes, 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.
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)-(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
20242023
NZ$000NZ$000
Trade creditors4,7383,420
Sundry accruals7,1955,171
Total trade payables and accruals11,9338,591
20242023
NZ$000NZ$000
CURRENT
Long service leave629669
Other short-term employee benefits22,05718,364
22,68619,033
NON-CURRENT
Long service leave1,104835
Other employee benefits2,793-
3,897835
Total employee entitlements26,58319,868
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 transferred outside the 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 2024 1,667,850 performance rights (2023: 1,251,422) in relation to the Long Term Incentive Schemes vested,
resulting in the same number of new shares being issued. Also 24,358 (2023: 68,737) 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 comprehensive income.
The shared based payments were introduced is to retain, attract, incentivise and align employees with
shareholder and Company objectives.
2024202320242023
000000NZ$000NZ$000
Ordinary Shares101,798100,480196,031194,009
Issue of new ordinary shares1,6921,3184,6672,022
103,490101,798200,698196,031
SHARES ISSUEDSHARE CAPITAL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 32
6.2 SHARE BASED PAYMENTS (CONTINUED)
Gentrack Group operated the follow three share schemes during the year:
- Senior Leadership Long Term Incentive Scheme
o At the Special Shareholders meeting, held on 9th October 2023, shareholders approved the issue
of up to 9,437,000 performance rights in total for the Chief Executive Officer (CEO) and senior
management under the Senior Leadership Long Term Incentive Scheme in respect of the financial
years ending 30 September 2024, 2025, and 2026. These performance rights are subject to tenure
and achieving both Earnings Per Share (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.
Effective financial year 2024, for ease of reference, this new senior leadership scheme, the CEO and
Senior Leadership performance rights granted after 1 October 2023, are categorised as the Executive
Leadership LTI Scheme.
o For Senior Leadership Long Term Incentive grants made in prior years, performance rights are
subject to a combination of tenure and the 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. The 2021 and 2022 awards are yet to fully vest. The remaining
performance rights under this scheme are subject to a combination of tenure and share price appreciation
hurdles.
For accounting purposes, the fair valuation of the schemes are as follows:
- Executive Leadership LTI Scheme - under this grant a weighted estimate of the number of shares expected
to vest is made based on the probability of each share price appreciation hurdle being met at each vesting
date. These probabilities have been derived by considering the published guidance (available at the date
each grant is awarded) of market analysts over Gentrack’s share price and future growth. The weighted
estimate assumes an 80% probability that the share price reached at vesting dates lies within the range
created using this guidance. However, varying this assumption by 5% up or down does not significantly
affect the accounting charge derived from this valuation model.
- All other schemes - 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 2024 $10.2m has been recognised
in the profit or loss (2023: $5.3m).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 33
6.2 SHARE BASED PAYMENTS (CONTINUED)
Below is the table of remaining outstanding performance rights at 30 September 2024.
*The number of performance rights that will vest on each vesting date is dependent on meeting the performance
hurdles and the share price at that date.
GRANT DATEVESTING DATE
TOTAL VALUE OF
GRANTED
PERFORMANCE
RIGHTS
PERFORMANCE
RIGHTS GRANTED
2024
NZ$000000
1 October 2021Early December 2024266183
1 October 2022Early December 20251,672349
Total Senior Leadership LTI Schemes1,938532
1 October 2021End of November 2024282161
1 October 2022End of November 20241,055309
1 October 2022End of November 20251,055309
1 October 2023End of November 2024863129
1 October 2023End of November 2025863129
1 October 2023End of November 2026863129
Total Gentrack LTI Schemes4,9801,167
1 October 202131 October 202415790
1 October 2021End of November 202415790
1 October 202231 October 202426697
1 October 2022Early December 202426697
1 October 202231 October 202526697
1 October 2022Early December 202526698
Total CEO LTI Schemes1,378570
1 October 2023Early December 20244,8123,191
1 October 2023Early December 2025 and 2026*7,925Up to 5,256
Total Executive Leadership LTI Schemes12,7378,447
Total Performance Rights Outstanding
21,03210,715
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 34
6.2 SHARE BASED PAYMENTS (CONTINUED)
*The actual date will be dependent on the date of release of the financial statements.
GRANT DATEVESTING DATE
TOTAL VALUE OF
GRANTED
PERFORMANCE
RIGHTS
PERFORMANCE
RIGHTS GRANTED
2023
NZ$000000
1 October 2020End of November 2023687463
1 October 2021Early December 2024*266183
1 October 202231 March 20241,672349
1 October 2022Early December 2025*1,672349
Total Senior Leadership LTI Schemes4,2971,344
1 October 2021End of November 2023282161
1 October 2021End of November 2024282161
1 October 2022End of November 20231,107325
1 October 2022End of November 20241,107325
1 October 2022End of November 20251,107324
Total Gentrack LTI Schemes3,8851,296
1 October 202131 October 202315790
1 October 2021End of November 202315790
1 October 202131 October 202415790
1 October 2021End of November 2024*15790
1 October 202231 October 202326697
1 October 2022End of November 202326697
1 October 202231 October 202426697
1 October 2022Early December2024*26698
1 October 202231 October 202526697
1 October 2022Early December 2025*26698
Total CEO LTI Schemes2,224944
Total Performance Rights Outstanding
10,4063,584
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 35
6.2 SHARE BASED PAYMENTS (CONTINUED)
PERFORMANCE RIGHTS MOVEMENTS
Below is a summary of all performance rights, granted, vested and forfeited across all the equity settled share-based
payments schemes operated by Gentrack Group during 2024:
6.3 DIVIDENDS
During the financial year 2024, $Nil dividends were paid (2023: $Nil).
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.
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 $2.903,584$1.562,564
Granted during the year$5.328,858$3.682,395
Vested during the year$2.74(1,668)$1.50(1,251)
Forfeited during the year$4.88(58)$4.42(125)
As at 30 September $4.9110,715$2.903,584
20242023
20242023
Profit attributable to the shareholders of the company9,54610,046
Basic weighted average number of ordinary shares issued103,11299,983
Shares deemed to be issued for no consideration in respect
of share-based payments
10,7153,584
Weighted average number of shares used in diluted earnings
per share
113,828103,566
Basic earnings per share$0.09$0.10
Diluted earnings per share$0.08$0.10
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 36
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.
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% (2023: 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.
As at 30 September 2024 Gentrack Group has $14.6m (2023: $10.5m) of imputation credits available for use in
subsequent reporting periods.
20242023
NZ$000NZ$000
INCOME TAX EXPENSE COMPRISES:
Current tax expense10,0849,782
Deferred tax expense (5,014)(4,803)
Tax expense5,0704,979
20242023
NZ$000NZ$000
Profit before tax14,61615,025
Taxable income14,61615,025
Domestic tax rate for Gentrack Group28%28%
Expected tax expense4,0924,207
Non-assessable income(1,597)(428)
Non- deductible expense*1,025635
R&D tax credits-(85)
Recognition previously unrecognised losses(306)(848)
Tax losses for which no deferred tax was recognised1,2931,568
Difference in tax rates of overseas subsidiaries 223(341)
Change in tax rates -(517)
Prior period adjustments340788
Actual tax expense5,0704,979
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 37
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.
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:25% for United Kingdom entities, 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.
Movement in temporary timing differences during the year:
2024
OPENING
BALANCE
TEMPORARY
MOVEMENT
RECOGNISED
CURRENCY
TRANSLATION
CLOSING
BALANCE
NZ$000NZ$000NZ$000NZ$000
Trade and other receivables(1)201
Intangible assets(2,095)1,282(136)(949)
Contract liabilities1,237(73)181,182
Provisions for doubtful debts and sundry
accruals
6,5514,8635611,470
Losses carried forward1,470(982)38526
Other(85)(78)(3)(166)
Net deferred tax7,0775,014(27)12,064
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 38
7.2 DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
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:
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 39
8.1 CREDIT RISK (CONTINUED)
*Current includes contract assets.
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 2024 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.
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), Saudi Arabia (SAR) and
Danish Kroner (DKK). Trade in 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):
GROSS
IMPAIRMENT
PROVISION
GROSS
IMPAIRMENT
PROVISION
NZ$000NZ$000NZ$000NZ$000
Current*31,025(93)30,876(109)
Past due 1-60 days7,423(113)2,415(64)
Past due 61-120 days921(30)845(177)
Past due 121-180 days6(1)--
Past due over 180 days1,047(1,047)3,210(3,210)
40,422(1,284)37,346(3,560)
20242023
AUDGBPEURUSDDKKSGDSAR
2024
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
Cash and cash equivalents10,62236,1892,3177,0921671,9391,144
Trade and other receivables6,60227,281--9722,1603,349
Trade and other payables(3,282)(2,937)(416)(116)(152)(744)-
Net exposure13,94260,5331,9016,9769873,3554,494
2023
Cash and cash equivalents10,71730,7172,124653379285-
Trade and other receivables4,02824,912-1,6066141,559-
Trade and other payables(597)(3,438)(129)(679)(115)(1,385)-
Net exposure14,14852,1911,9951,580878459-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 40
8.2 MARKET RISK (CONTINUED)
The following table summarises the sensitivity of other comprehensive income 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 2024
(2023: 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.
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:
AUDGBPEURUSDDKKSGDSAR
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$001NZ$002
2024
10% strengthening in NZD(1,267)(5,503)(173)(634)(90)(305)(409)
10% weakening in NZD1,5496,726211775110373499
2023
10% strengthening in NZD(1,286)(4,745)(181)(144)(80)(42)-
10% weakening in NZD1,5725,7992221769851-
OTHER COM PREHENSIVE INCOM E / EQUITY
ON DEMAND
LESS THAN 3
MONTHS
3 TO 12
MONTHS
1 TO 5
YEARS
>5 YEARSTOTAL
NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000
2024
Trade payables-4,738---4,738
Lease liabilities-9512,85414,0182,86820,691
-5,6902,85414,0182,86825,430
2023
Trade payables-3,420---3,420
Lease liabilities-8262,47712,4345,75521,491
-4,2452,47712,4345,75524,911
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 41
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.
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 2024 Gentrack Group has no level 3
financial instruments (2023: $Nil).
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 demand33,285---33,285
Term deposit-33,394--33,394
Total exposure33,28533,394--66,679
EFFECTIVE
INTEREST
RATE +1%
EFFECTIVE
INTEREST
RATE -1%
NZ$000NZ$000
Cash on demand336(336)
Term deposit337(337)
Total exposure674(674)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 42
8.5 FINANCIAL INSTRUMENTS (CONTINUED)
FINANCIAL INSTRUMENTS BY CATEGORY
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:
20242023
NZ$000NZ$000
FINANCIAL ASSETS MEASURED AT AMORTISED COST
Cash and cash equivalents66,67949,186
Trade receivables and contract assets39,04733,627
105,72682,813
FINANCIAL LIABILITIES MEASURED AT AMORTISED COST
Trade payables(4,738)(3,420)
Lease liabilities(17,155)(17,306)
(21,894)(20,725)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 43
9.1 LEASE ASSETS AND LEASE LIABILITIES (CONTINUED)
LEASE ASSETS
LEASE LIABILITIES
LEASE EXPENSES
20242023
NZ$000NZ$000
Balance at 1 October12,6378,560
Additions2,1366,431
Terminations-(178)
Amendments-(316)
Depreciation charges(2,183)(1,793)
Exchange differences233(67)
Lease assets at 30 September12,82312,637
Property12,82312,637
Lease assets at 30 September12,82312,637
20242023
NZ$000NZ$000
Balance at 1 October17,30613,082
Additions2,1366,431
Terminations-(196)
Amendments-(310)
Payments(3,642)(2,731)
Accretion of interest1,1081,069
Exchange differences247(39)
Lease liabilities at 30 September17,15517,306
Less than one year2,7382,287
One to five years11,8219,796
More than five years2,5965,223
Lease liabilities at 30 September17,15517,306
20242023
NZ$000NZ$000
Depreciation charges2,1831,793
Finance charges1,1081,069
Lease expenses3,2912,862
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GENTRACK FINANCIAL STATEMENTS / 44
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 2024.
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 2024 (2023: $Nil).
CONTINGENCIES
BNZ has provided guarantees of $0.4m (2023 $0.7m guarantees were provided by BNZ and ASB New Zealand) on
behalf of the Gentrack Group, these guarantees are in place for compliance, property leases and credit card programs.
EVENTS AFTER BALANCE DATE
There were no material events after balance date.
On 25 November 2024, the Gentrack Group Board determined that no final dividend will be paid out for the 2024
financial year (2023: nil).
20242023
NZ$000NZ$000
EY - audit fees492461
Non EY audit firm fees:
- Audit fees5616
- Accounting advise and taxation & compliance services6953
Total fees paid to auditor(s)617530
20242023
NZ$000NZ$000
Short-term employee benefits7,3328,065
Share-based payments5,5443,352
Directors fee677665
Remuneration paid to Key Management Personnel13,55312,082
CORPORATE DIRECTORY
GENTRACK FULL YEAR FINANCIAL STATEMENTS / 45
REGISTERED OFFICE
Gentrack Group Limited
17 Hargreaves Street, St Marys Bay, Auckland 1011,
New Zealand
Phone: +64 9 966 6090
Level 15, 628 Bourke Street, Melbourne, VIC 3000
Australia
Phone: +61 3 9867 9100
POSTAL ADDRESS
PO Box 3288, Shortland Street, Auckland 1140 New
Zealand
NEW ZEALAND INCORPORATION NUMBER
3768390
AUSTRALIAN REGISTERED BODY NUMBER (ARBN)
169 195 751
DIRECTORS
Andy Green, Chair
Darc Rasmussen
Gary Miles
Gillian Watson
Fiona Oliver
Stewart Sherriff
COMPANY SECRETARY
Anna Ellis
AUDITOR
EY
EY Building, 2 Takutai Square, Britomart
Auckland 1010
Phone: +64 9 377 4790
LEGAL ADVISERS
BELL GULLY
Level 14 Deloitte Centre
1 Queen Street
Auckland 1010
BANKERS
BANK OF NEW ZEALAND
ASB BANK LIMITED
ANZ LIMITED
HSBC PLC
NORDEA DENMARK A/S
SHARE REGISTRAR
NEW ZEALAND
MUFG PENSION & MARKET SERVICES
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
MUFG PENSION & MARKET SERVICES
Level 12, 680 George Street, Sydney, NSW 2000
Locked Bag A14, Sydney South, NSW 1235
Phone: +61 1300 554 474
Facsimile: +2 9287 0303
Email: enquiries@linkmarketservices.com
CORPORATE DIRECTORY
GENTRACK FULL YEAR FINANCIAL STATEMENTS / 46
---
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Gentrack Group
FY24
26 November 2024
[NZX/ASX: GTK]
2
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
This presentation may contain forward-looking statements.
Forward-looking statements often include words such as
‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with
discussions of future operating or financial performance.
The forward-looking statements are based on management’s
and directors’ current expectations and assumptions regarding
Gentrack’s business and performance, the economy and other
future conditions, circumstances and results. As with any
projection or forecast, forward-looking statements are inherently
susceptible to uncertainty and changes in circumstances.
Gentrack’s actual results may vary materially from those
expressed or implied in its forward-looking statements.
All figures are shown in NZ$M.
Disclaimer
3
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Gentrack
FY24 Business Review
Gary Miles
Chief Executive Officer
4
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Financial Headlines
REVENUE
UTILITIES
REVENUE
VEOVO
REVENUE
1.7%
EBITDA
25.5%
NET CASH
after $12.9m Amber
Investment.
RECURRING REVENUE
excl. insolvent customers
22.6%
45.5%
31.0%
35.6%
FY 23FY 24
$169.9M
$213.2M
$147.9M
$181.3M
$21.9M
$31.9M
$105.0M
$137.5M
$23.2M
$23.6M
$49.2M
$66.7M
Revenue growth of 25.5%
Utilities revenue up 22.6%:
•Underlying revenue, excluding $27.6m in FY23 from
insolvent UK customers, up 51%.
•Recurring revenue 33% higher from prior period wins
& upsells. NRR up 104%, includes upgrades and other
customer transformations, new customer wins and
strong demand for innovation and change from across
our customer base.
Veovo: revenue up 45.5% (25% upexcl. $6.8m of
hardware sales). Strong project revenues from wins and
upgrades in APAC, Europe and Middle East. Recurring
revenue growth remains strong at 15%.
EBITDA at $23.6m includes c.$7m booked against
expected payroll costs on LTI share schemes (c.$4m more
than assumed in our guidance). This follows the 124%
YOY increase in our share price. EBITDA before all LTI
costs (the payroll taxes and the accounting charge for the
LTI) is up 42% YOY (see next slide). We expect LTI costs to
fall in FY25 and further in FY26.
Cash at $66.7m (after $12.9m Amber investment).
Cash generationremains strong.
5
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
LTI Costs included within EBITDA
•LTI payroll tax: booked $7.1m v $0.3m in FY23. c.$4m
more than expected in our guidance:
oFollows substantial uplift in our share price which
increases expected cost payable over life of share
schemes.
oNow amortising most of this cost over 2 rather than
3 years (under the current scheme more shares vest
& vest earlier when the share price is higher).
oExpect a similar cost in FY25 which then falls
substantially to < 1% of revenue.
•LTI accounting charge at $10.2m v $5.3m in FY23.
For recent schemes, whilst spread over 3 years, cost
weighted towards FY24. Expect this cost to be c. $8m in
FY25.
•Lower LTI costs in FY25 and beyond will support
margin expansion.
EBITDA being earnings before depreciation, amortisation, other income, financing, forex, loss from associate and tax. EBITDA is a non-GAAP measure
Our LTI share schemes have underpinned our strong growth,
through staff retention, attracting talent and incentivising
performance.
EBITDA includes the accounting charge for LTIs and in some
countries (e.g. UK) payroll taxes due on vesting.
Our EBITDA before these costs is 42% higher YOY.
FY23FY24YOY%
$m
Revenue169.9213.2
EBITDA23.223.61.7%
EBITDA margin14%11%
Add back payroll tax on LTIs0.37.1
Sub-total23.530.730.6%
as a % of revenue14%14%
Add back accounting charge (non-cash) for LTIs5.310.2
EBITDA before all LTI costs28.840.942.0%
EBITDA before all LTI costs margin17%19%
6
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Looking Ahead
We remain confident of our mid-term guidance of growing revenue more than15% CAGR and
an EBITDA margin of 15-20% after expensing all development costs.
In FY25, we expect both Utilities and Veovo to show continued revenue growth and EBITDA
improvement, the extent of which will depend on when business opportunities close in the year.
We will look to provide further guidance on FY25 outlook later in the financial year.
7
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Key metrics across the last 4 years
4Y CAGR 26%
8
Our 4+1 Engines of Growth
MOMENTUM
LEADERSHIP
+248%
+25%
0%
+30%
+85%
+43%
Excluding insolvencies
9
Our 4+1 Engines of Growth
▪More with our customer base
MOMENTUM
LEADERSHIP
+248%
+25%
0%
+30%
+85%
+43%
Excluding insolvencies
10
+248%
+25%
0%
+30%
+85%
Our 4+1 Engines of Growth
▪More with our customer base
MOMENTUM
LEADERSHIP
+43%
Excluding insolvencies
▪Extending our base with new
logos and new countries
11
Our 4+1 Engines of Growth
▪More with our customer base
▪Extending our base with new
logos and new countries
▪#1 in Customer Experience (CX)
MOMENTUM
LEADERSHIP
AUSTRALIA
The most advanced energy market
UK
The most competitive energy market
Worldwide
Salesforce #1 CRM
Revenue Market Share
Source: IDC Worldwide Semi-
annual Software Tracker,
November 2023.
12
Our 4+1 Engines of Growth
▪More with our customer base
▪Extending our base with new
logos and new countries
▪#1 in Customer Experience (CX)
MOMENTUM
LEADERSHIP
▪Global recognitions & Awards
NEW ZEALAND
Business Transformation CIO Awards
ASIA
Asian Technology Excellence Awards 2024
UK
Partner International Success
Gentrack awarded 3 prestigious awards
▪Best Enterprise Software for Utilities
▪Best Enterprise Software for Energy
▪Best ESG Tech for Utilities
Best Airport Award 2024 – OSLO Airport
13
Extensive g2 Capability Model
14
Leading Technology for Energy and Water
▪Best technology stack (g2) to support the energy transition
For B2C & B2B, Energy & Water
▪Leading in Customer Experience (CX) within our markets
▪Leveraging best-in-class technology partners
▪g2 full transformation project at Genesis is going well
▪We see increasing g2 engagement with our customer base
and we have numerous g2 new customers opportunities
▪Our focus remains to enable our customers reaching
Customer Experience Excellence (CX), Operations
Excellence and Financial Excellence
Source: IDC 2024 Worldwide Semiannual Software Tracker®
#1 CRM Provider
Huge investments in AI
#1 Cloud Infrastructure
Provider
Source: Statista Nov 2024
15
We continue to grow across our core markets for utilities in Australia, New Zealand
and the UK where the demand remains strong. These markets are modernising in advance of other
countries which will follow.
We’ve had four new Utilities customer wins in the year including in two new countries, Saudi Arabia and
the Philippines. Veovo has added top tier airports in Saudi Arabia and the UK to its portfolio.
Across water, energy and airports our pipeline continues to strengthen and mature. We expect growth in
our base and further expansion with new customer wins in the year.
Our LTI share scheme has allowed us to attract top talent, keep staff retention well ahead of tech
benchmarks and drive world class outcomes.
We’ll assess M&A opportunities as they arise.
We’re pleased to have joined both the NZX50 and ASX300 indexes.
CEO Closing Remarks
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
John Priggen
Chief Financial Officer
Gentrack
FY24 Results
17
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Group Profit and Loss
•Group revenue up 25.5% strong growth for
Utilities & Veovo.
•EBITDA at $23.6m v $23.2m in FY23
oUnderlying margin improvement offset by the
high costs associated with LTIs in FY24.
oLTI costs expected to fall in FY25 and FY26.
•NPAT includes our share of Ambers loss being
$1.3m.
•R&D tax credits of $1.7m ($1.6m in FY23)
disclosed as Other Income.
EBITDA being earnings before depreciation, amortisation, other income, financing, forex, loss from associate and tax. EBITDA is a non-GAAP measure
NZ$m
FY 23
FY 24
Utilities
Veovo
Total
Utilities
Veovo
Total
Recurring revenue
90.9
14.1
105.0
121.3
16.3
137.5
Non Recurring Revenue
29.5
7.8
37.3
60.0
15.7
75.7
Insolvent Customers
27.6
-
27.6
-
-
-
Revenue
147.9
21.9
169.9
181.3
31.9
213.2
Operating Costs
-123.3
-17.7
-141.1
-147.2
-25.1
-172.3
EBITDA before LTI Schemes
24.6
4.2
28.8
34.1
6.8
40.9
%
17%
19%
17%
19%
21%
19%
LTI Share schemes
-4.8
-0.6
-5.3
-9.3
-0.9
-10.2
LTI - Payroll Tax
-0.3
-
-0.3
-6.5
-0.6
-7.1
EBITDA
19.5
3.7
23.2
18.3
5.3
23.6
EBITDA %
13%
17%
14%
10%
17%
11%
Depreciation & Amortisation
-8.5
-9.0
Foreign Exchange Gains/Losses
-0.2
-
Net Finance Expense
-1.1
-0.4
Share of Amber's Loss
-
-1.3
Income Tax Charge
-5.0
-5.1
Other Income
1.6
1.7
NPAT
10.0
9.5
18
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
FY 24
FY 23
Utilities Revenue Analysis
22.6% YOY growth (50.6% underlying growth)
•Recurring revenue up 33% from prior period
wins & upsells.
•Non-recurring revenue up 104%. Key FY24
programmes include:
•g2.0 upgrade at Genesis;
•continued regulatory change across our customer
base including MHHS in the UK;
•new wins at Neom, Vocus and Amber;
•implementations & upgrades at Power and Water
Corporation, Solstice Energy, SSE Airtricity and
Water Authority of Fiji;
•strong demand for innovation and change from
existing customers.
Utilities Revenue FY 24 v FY 23
Total:$181.3m
Total:$147.9m
Committed Monthly
Recurring Revenues
(CMRR)
Non-contracted
Recurring Revenues
(TRR)
Non-recurring
Revenues (NRR)
Revenue from Bulb
& other UK insolvencies
Underlying:$181.3m
Underlying:$120.3m
NZ$m
51%
19
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Utilities Revenue Analysis
FY24 v FY23 Revenue by region
•Strong underlying growth in the UK offset loss
of FY23 Bulb revenue.
•Consistent strong growth in Australia from
upgrades and new wins.
•NZ growth includes the g2.0 upgrade at
Genesis which continues into FY25.
•ROW growth from Neom (Saudi Arabia) win.
ROW also includes Singapore, Fiji & PNG.
Top 10 customers by revenue
All other
customers
0%
30%
85%
ROW
248%
Underlying revenue
+43%
Underlying growth
NZ$m
Revenue by market segment
20
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
FY 24
Revenue Analysis
Veovo Revenue FY24 v FY23
Revenue by region
Committed Monthly
Recurring Revenues
(CMRR)
Non-contracted
Recurring Revenues
(TRR)
Projects Non-recurring
Revenues (NRR - Projects)
$31.9m
$21.9m
EMEA
AMERICAS
APAC
FY 23
NZ$m
Hardware Non-recurring
Revenues (NRR - Hardware)
45.5% YOY growth (25% higher excl.
hardware sales)
•NRR from services and hardware up
100%+ driven by new customer wins
in the UK and the Middle East and
upgrades across Europe and APAC.
•Customer wins and upgrades from
prior periods has pushed recurring
revenue up by 15%.
25%
21
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Utilities Expenditure Analysis
•$15.6m increase in direct costs, in people &
hosting, to support higher revenues.
•LTI accounting charge is $4.6m higher v FY23,
partly from business growth and partly how
schemes are structured which front loads more
of the 3-year cost into FY24.
•$6.2m (Utilities share) more booked to cover
payroll costs on LTI schemes. (See slide 5.)
•We continue to invest more in strategic R&D
(our target remains to spend c.15% of revenue)
and in sales, marketing and international
expansion.
Utilities Costs FY24 v FY23
NZ$m
22
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This document is the intellectual property of Gentrack.
Cashflow
•Strong underlying cash generation of $30.4m
funding:
•$12.9m Amber investment
•$17.5m increase of year end cash to
$66.7m.
•FY24 working capital inflow includes c $6.5m
accrued against payroll costs payable on LTI
vestings in future years.
•EBITDA includes the non-cash charge for the
Group’s LTI schemes of $10.2m.
NZ$m
YoY %
Cash Balance as at Beginning of Period
27.4
49.2
80%
EBITDA
23.2
23.6
2%
Change in working capital
-0.9
7.2
>100%
Tax
-1.7
-6.6
>100%
Capex
-2.0
-1.1
-44%
Property leases
-2.7
-3.6
35%
Net Interest Received
-0.0
0.7
>100%
LTI share schemes (non cash item in EBITDA)
5.3
10.2
91%
Foreign exchange
0.6
-0.0
>100%
Underlying Cash Generated in Period
21.8
30.4
39%
Investment in Amber
-12.9
Cash Balance as at End of Period
49.2
66.7
36%
FY 23
FY 24
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This document is the intellectual property of Gentrack.
Q&A
24
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This document is the intellectual property of Gentrack.
FY24 on a Constant Currency Basis
NZ$mFY24
FY24
Constant
Currency
Difference
Revenue
213.2208.5-4.8-2.2%
Operating Costs
189.7185.5-4.2-2.2%
EBITDA
23.623.0-0.6-2.5%
Statutory NPAT
9.59.3-0.2-1.8%
%
.
Most of the difference is from an average 4.4 % depreciation of NZD v GBP.
This compares FY24 results against what those results would have been if they had been booked at FY23 exchange
rates.
25
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Reconciliation to Financial Statements
•This shows how CMRR; TRR; NRR and
revenue from insolvent customers
shown in this presentation reconciles to
revenue disclosure in the Financial
Statements.
•For FY23, the $27.6m revenue from
insolvent customers is disclosed in the
Financial Statements as $12m of annual
fees $0.2m of support services and
$15.4m from managed services.
NZ$m
26
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
What has been the impact of Gentrack's Scheme?
Management and senior staff are eligible for LTI share schemes. Staff turnover has fallen and is lower than tech benchmarks. We believe
that our LTI share schemes are a key component underpinning the very strong growth we have seen this year.
How does the accounting for our LTIs work?
The LTI’s value is estimated when the award is made, and this cost is spread over the life of that award. Each vesting date within an award
is considered separately and the associated cost is amortised over the period of each vesting date rather than simply being evenly
spread across a 3-year award. We spread the expected cost of any payroll taxes due when shares vest, over the same time periods.
What if the share price changes over time or if EPS hurdles are not met?
Subsequent share price changes don’t impact the accounting value for the LTI itself but as explained in slide 5 will impact any payroll
taxes due when shares vest.
Under accounting rules, the original estimate of the LTI’s value assumes EPS hurdles will be met. If they are not met or expected not to
be, then there is an adjustment – removing the costs previously booked against the respective LTI scheme from the P&L.
Has Gentrack met the FY24 EPS hurdle within managements’ LTI scheme and what will the impact be?
LTI share schemes Q&A
The FY24 EPS hurdle of $0.16 has been
met.
The number of shares that can vest in
December 2024 is capped at 3.2m.
$m
Net profit after tax (NPAT) in the Financial statements9.5
Add back amortisation of intangible assets5.5
Add back (non-cash) accounting charge for share based payments10.2
Adjusting for the tax or deferred tax impact of the items set out above4.5-
Adjusted NPAT20.8
Weighted average number of shares (m's)103.1
EPS as defined under the LTI scheme0.20$
© Gentrack 2024. All rights reserved.
This document is the intellectual property of Gentrack.
Thank you
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.