EROAD Limited (ERD) results for the financial year to 31 March 2019:

Financial highlights (comparisons with FY18):

• Revenue increased to $61.4m, up 40%

• Operating costs were $45.7 million, up 38%

• EBITDA of $15.6m, up 48% compared to $10.5m (restated) in FY2018

• Total Contracted Units in New Zealand/Australia grew to 71,446, up 19%

• Total Contracted Units in North America rose to 24,944, up 40%

• Future Contracted Income grew to $117m, up 17%

• Net loss before tax of $5.1m, influenced by investment programme as well as changes to accounting treatment

• Asset and customer retention rates remain strong at 94% and 98% respectively

“This year we‘ve built a solid platform for future growth,” says chief executive officer Steven Newman. “We‘ve made significant progress implementing the investment programme set out in the strategic plan approved at the time of capital raise (Dec ‘17 – Feb ‘18), ensuring we can scale efficiently, improve our customer experience and provide greater operating leverage.”

Newman said that in the past year, EROAD has supported journeys of more than 3.2 billion kilometres travelled by trucks and light vehicles in New Zealand, Australia and the United States of America

“More customers, more journeys, more data, more knowledge for informed decisions. We must continually evolve the business to remain relevant in this constantly changing environment.

“Maintaining this momentum requires continued innovation, exemplary service and sustained reliability. Preserving these factors has required the programme of investment commenced during this past year.”

He said EROAD was more robust and well positioned for sustained growth across all markets.

“To drive on our roads should not require spinning the roulette wheel of life. It is heart-warming indeed to know that what we do, what our products and services enable for our customers, also helps get more people home safely, every night.”

EROAD expects steady growth in New Zealand and North America to continue during FY2020. This will come from continuing run rate SMB business as well as anticipated expansion with enterprise customers. While the projected pipeline in Australia remains strong, investment will continue to run ahead of revenue in the near to medium term.

The shift to more fuel efficient and alternate fuel source vehicles is creating an increasing deficit in infrastructure funding, leading more regulatory authorities to consider road funding options.

With EROAD‘s gravitas in regulatory telematics, there is an expectation that interest from regulatory authorities in EROAD‘s products and services will continue to grow.