25 Nov 2014

Eroad posts first-half loss, but profit up

1:16 pm on 25 November 2014

Eroad has posted a $1.9 million first-half loss and said it is on track to meet its prospectus forecast for an annual loss of $1 million.

Eroad, which sells technology to manage road user charges for trucks and provides other services, says annualised recurring revenue reached $16 million by the end of September, up 72 percent on a year earlier.

The company was also cashflow positive to the tune of $1.6 million in the six months ended September, before the near $2 million cost of its float and listing on NZX in August.

Chief executive Steven Newman said it was a good result and sets the company up to complete a successful year.

"We measure things very carefully. We have a view of what our sales pipeline looks like and the rate at which our products are being adopted, so that's what gives us the confidence.

"We also have a good pipeline of new products coming to market, which will support further sales six to twelve months ahead; that's what gives us confidence".

Get the new RNZ app

for ad-free news and current affairs