Transportation technology company EROAD has released its full annual report for the year along with its first sustainability report.
The sustainability report is the company’s first step towards mandatory Task Force on Climate-related Financial Disclosures (TCFD) which will begin in FY23.
Chairman Graham Stuart says FY22 was a “significant year of transition” for the company with the merger and integration of Coretex.
“EROAD has faced some challenges over the last 18 months with slower growth in North America ahead of the merger, unpredicted supply chain and labour market challenges and chief executive uncertainty, all in a backdrop of falling technology stock prices which has seen our share price underperform,” he says.
As reported in May, EROAD posted a $9.6 million loss for its full year 2022 result. That compared to a net profit of $2.5m in the year prior. Revenue increased from $91.6m to $114.9m reflecting the merger of Coretex and organic growth across all markets.
EROAD’s share price has fallen from a high of around $6.70 per share in July last year and is now trading just below $1.50 per share.
This month, it announced the appointment of Mark Heine as new permanent chief executive following the resignation of former boss Steven Newman in April.
Stuart says the board and management “have a laser-sharp focus on improving shareholder value”.
“We remain confident that the Coretex merger gives us scale and importantly fills technology and capability gaps, and we are undertaking a strategy refresh over H1 FY23 to ensure we maximise our growth potential.
“The board has now appointed Mark Heine as Chief Executive Officer who has the capabilities to lead EROAD to perform consistently and deliver on its growth strategies,” Stuart says.
“The goals for the business in the coming year are straightforward, we must complete integration with the Coretex business and build growth momentum in our North American market, without taking a backward step in New Zealand or Australia. Quite simply FY23 is a year of delivery.”
Stuart adds that the company is now operating in” turbulent market conditions”.
“The competition for talented staff has not been fiercer than EROAD is now experiencing, the tide has quickly turned in our capital markets, inflation is at the highest levels this century and in each of our markets COVID-19 and its aftereffects continue to disrupt our supply chains and supress economic growth,” he says.
EROAD has entered FY23 with an annualised monthly recurring revenue of $134.6m.
The board has provided revenue guidance for the year in the range of $150m to $170m, the width of the range reflecting the uncertain timing of achieving larger enterprise sales.
The company expects that with a strengthening presence in North America, sales growth momentum will steadily build, and the board has provided a revenue goal of at least $250m by FY25.
*Click here to read the company’s full annual report and here for its inaugural sustainability report.
