NZX-listed transport technology company EROAD is considering a secondary listing on the Australian Stock Exchange.
The company says it “remains committed” to maintaining its New Zealand listing and a dual listing will help “facilitate greater alignment between the company’s business operations and investor base”.
“Following the re-launch of our Australian business and increasing interest from Australian and other international investors, the board is considering seeking an ASX Foreign Exempt Listing.”
The company recently delivered a total 7178 more units in the three-month quarter to September 30.
This was up 28% annually and brings a total of 109,380 units for the year-to-date.
It says it’s committed to “becoming a global company with expanding offshore operations and revenues as well as significant growth aspirations”.
Growth in North America was strong, with annualised growth up 62% with 4345 units added in the quarter and a year-to-date total of 32,193.
The New Zealand market grew 15% annually with 2,699 units added in the quarter and a year-to-date total 75,674.
Australia was up 39% annually with 134 units added and a year-to-date total of 1513.
The company says it’s a “good start to this financial year” with an “encouraging overall pipeline” for growth ahead.
“Over the quarter, New Zealand grew 4%, in line with the company’s expectations, with consistent pricing, attracting both enterprise and small to medium businesses.
“The North American market for EROAD delivered strongly with total contracted units up 54% on Q2FY19. Within this quarter, deployments were completed for EROAD’s largest enterprise customer (around 5500 units).
“Additionally, following the signing of a further large enterprise customer in June, EROAD’s investment in scalable systems and processes enabled installation of over 90% of the contracted units (around 1,650) for that customer within eight weeks.
“The run rate for small to medium business customers has to date been below EROAD’s expectations. Additionally, EROAD has not seen the anticipated level of increase in sales pipeline ahead of the [automatic on-board recording device] to [electronic logging device] mandate deadline at the end of December 2019.
“EROAD continued to build its brand presence in the Australian market, with steady growth of 10% in the quarter reflecting gains in the small-to-medium businesses sector.
“While steady, the small-to- medium business run rate is below EROAD’s expectations.”
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