ERoad posts $100k first half loss, considers ASX dual listing
ERoad has reported a strong increase in first half revenue and underlying profit, and is considering dual listing on Australia's stock market.
The transportation management software company made a net loss of $106,000 in the six months to September, which is an improvement on the loss of $3.4 million the previous year.
Revenue rose 35 percent to $38.5 million, with annualised growth in new contract units up 27 percent .
The underlying profit almost doubled, rising 92 percent to $11.9m, with growth expected to continue over the second half.
The company said it installed software onboard two large North American customers over the period, contributing to a 58 percent increase in contract units and driving market revenue up 72 percent.
Growth in ERoad's North American market was now outpacing the more mature New Zealand market, which saw a 20 percent increase in revenue over the half.
"At the same time, we continued investing significantly in developing new markets and products, which will help realise the growth potential of ERoad," chief executive Steven Newman said.
ERoad was launching new software later this financial year to keep track of equipment, which would add an additional revenue stream, and is expected to flow through to the next financial year.
The company's re-launch into Australia saw contract unit growth of 26 percent, but with flat revenue and an underlying profit loss of $800,000.
ERoad said the loss reflected continued investment in sales and marketing in Australia.
It was considering a dual listing on Australia's ASX stock market, with a decision expected early next year.
"I think the Australian market, ASX, opens us up to other institutional investors being able to invest," Newman said.
This article was originally published on RNZ and re-published with permission.
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