EROAD posts half-year results

EROAD has posted a net loss after tax of NZ$3.4 million for the six months to September 2018.

This compares to the $3.9m loss in the same period last year for the transport technology services company.

Revenue grew to $28.5m for the half-year period compared to $19.5m the year before.

Earnings before interest, taxation, depreciation and amortisation was up to $6.2m compared to $3.4m for the same period last year.

Total contracted units on EROAD’s platform to September 30 were 86,240, a gain of 45% year-on-year.

Total contracted units in New Zealand and Australia grew to 65,285 for the period, a growth rate of 31% year-on-year.

EROAD chief executive Steven Newman says investing in the business is a big focus “to build a platform that scales for the next stage of growth”.

The company is investing to expand its business in New Zealand, Australia and North America to “pursue significant growth opportunities”.

“We faced higher costs in the six months as we built our leadership team at a group level and in the US, we laid the groundwork for our Australian expansion and we commenced the upgrade of our business systems.

“Although US growth rates have moderated from last year’s high levels, the medium and long-term trends and opportunities for regulatory telematics in our markets remain positive,” Newman says.