EROAD Limited is announcing a net loss before tax of $5.3 million for the financial year ending March 31, 2017, which the company attributes to investment in staff, research and development, as well as a change in accounting procedure.
However, the listed transport services technology provider points out that its revenue of $33 million is up by 25% on last year, and total contracted EROAD units of 48,041, are up by 30% on last year.
According to EROAD, its customer retention rate remains unyielding at 99%, and its future contracted income reached $59 million, up by 22% on last year.
Chief executive Steven Newman says EROAD’s loss for the year was predominantly the result of investment in new team members, independent expert advice, analysis, and branding for the US market as well as a change in the accounting estimate about amortisation of intangible assets.
The total amortisation charge (non-cash) for the year of $4m was $1.4m higher as a result of the change in estimate.
Chairperson Michael Bushby says the board was pleased with the company’s strong performance in New Zealand and Australia and in progress in readying the US business for faster growth.
“We have continued to grow well in New Zealand while delivering our largest ever R&D project (Electronic Logging Device) to the US market and also building our sales and marketing capability to address the ample US opportunity. We remain focused on continuing to broaden our New Zealand business where considerable potential remains,” says Bushby.
“The continued strong performance of our New Zealand business gives us the confidence to continue to invest in our global opportunities, particularly in the US. The opportunities for continued growth both in New Zealand and the US remain considerable,” he says.
