Road transport software firm ERoad has returned to profitability with a first-half result boosted by its recently acquired transport technology company Coretex.
Key numbers for the six months ended September compared with a year ago:
- Net profit $552,000 vs ($2.8m)
- Revenue $85.4m vs $48m
- Underlying profit $20.8m vs $12.3m
The company said New Zealand continued to deliver strong and stable growth, but the North American market was seeing a high turnover of customers, with increased competition.
ERoad chair Graham Stuart said the company was repositioning for growth and the result reflected a company in transition.
“With a sharp focus on shortening investment horizons, we are looking for a quicker return on investment from R&D spend and undertaking an on-going programme of cost-cutting initiatives,” he said.
“We expect the tough decisions taken during this year will positively impact on performance in the second half and beyond and, coupled with the outcomes of the strategic review, will set the business towards profitable growth.”
The company said it was on track to meet its revenue guidance of between $154m and $164m.
Chief executive Mark Heine said the company was continuing to focus on cost cutting and was forecasting an underlying loss of between ($5m) to break-even.
“We moved early on a cost out programme to ensure we are able to deliver profitable growth,” he said.
Story Credit: rnz.co.nz