The Gentrack Group Ltd (ASX: GTK) share price is falling slightly today after the specialist software provider for energy utilities, water companies, and airports released its interim results.
Here are key highlights from the six months ending March 31 2017:
- Half-year operating revenue rose 24.4% on the prior corresponding period to $28.9 million.
- Underlying half-year EBITDA increased 31.2% to $8.8 million.
- Net profit after tax jumped 46% to $5.6 million.
- Interim dividend of 4.2 cents per share.
- Full-year EBITDA growth of 20% expected by management.
Overall I think this was yet another impressive result from this fast-growing company.
Thanks largely to several new utilities projects in both Europe and Australia, project services revenue increased 37% on the prior corresponding period. Recurring fees increased 9%.
This led to its UK business reporting a 27% lift in revenue and its Australian business reporting a similarly strong 28% jump in revenue.
One spot of disappointment was its Airport business which saw first-half revenue fall 11% on the prior corresponding period.
However, this was due to the timing of new projects and not necessarily a drop in demand. In fact, the company signed up a number of new customers for its Airport 20/20 solution.
One such customer was the Santiago Airport in Chile, which became its first customer in the South American market.
Should you invest?
I'm a big fan of the company and believe it has significant long-term growth potential and could be a great alternative to fellow billing solutions provider Hansen Technologies Limited (ASX: HSN).
But with its shares up 31% this year already, I feel much of this strong result has already been built into its current share price.
So for now I intend to sit on the sidelines and await a better entry point. Though there is a danger that I have missed the boat.
