Gentrack breaks silence on contracts

MICHAEL FOREMAN
Last updated 15:43 06/08/2014

Relevant offers

Industries

Dancing Sands toasts success from Kiwi products From urban planning to underwear: Confitex co-founder Mark Davey Top of the south working group advocates seek focus in fishery preservation 1MBD scandal: Judge allows Malaysian businessman tussling for $370m in seized assets to take control of NZ trusts Z Energy to help get curious drivers behind the wheel of an EV BNZ internet banking outage: Customers unable to bank online Quirky QT hotel brand coming to Queenstown More than 500 job losses as more Pumpkin Patch stores to close Rolls-Royce emerges tarnished, but lucky despite NZ$1.15b fine Donald Trump's appointment of Xero's Chris Liddell: Does NZ not care about the values of its business leaders?

Gentrack says it was not aware of contract problems that prompted its profit downgrade last Friday until after the company had listed on the NZX.

The software firm last week attributed the lower profit forecast in part to a delay on "a major project" and to a delay in signing a substantial upgrade contract with a customer.

The company said it was in dispute with a customer over who should pay to complete the project, and it expected the dispute to go to mediation.

Spokesman Aaron Baker would not say on Monday whether the project was originally due to be completed before or after Gentrack's share offer closed on June 20.

After "media and third-party commentary", Gentrack said today that the likely financial impact of the delayed contracts was established "very shortly" before its revised forecast was released last Friday.

"The facts and circumstances that led the board to conclude that the FY14 forecasts should be revised down have arisen recently after Gentrack was listed on the NZX and ASX," chairman John Clifford said.

Gentrack said both delays involved "large utility customers" with whom the company had longstanding relationships, and it expected to do "significant additional work" with them.

In the case of the disputed payment, Gentrack said it was working with the customer towards a successful system implementation.

Despite the dispute, Gentrack "fully expects to have an ongoing long-term productive relationship with this customer".

Clifford said the Gentrack board "deeply regrets" that it had to revise its forecast downwards so soon after listing.

Shares in the Auckland-based developer of software for airports and energy and water companies, were down 4c or 1.8 per cent at $2.15 in afternoon trading. 

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content