ERD - ERoad. (Transport sector technology)

[Grimy]

On the News last night (or night before) they were discussing road user charges for cars and an E-Road unit was the unit that they were displaying when they said -'and every vehicle will need one of these'.
Also interviewed a business owner singing their praises as an easy to use, cost saving (for a business with multiple vehicles on the road) piece of equipment.
Great advertising.

[ronaldson]

1.873m shares gone thru on market just now at $0.86. I wonder who organised that?

[Bikeguy]

Some big numbers going through at the moment…

[ronaldson]

Some big numbers going through at the moment…

There are indeed. Worth noting that a couple of parties have filed SPH Notices this month already - Australian Ethical Investments, and Ampfield Management LP which seems to be an american funds manager.

So another 5m already today will be augmenting someones holding and may lead to another filer or an amendment to an existing filing. I know there is a seller for every buyer but this suggests the parties accumulating see opportunity even if the share price is not advancing significantly just now.

[Bikeguy]

There are indeed. Worth noting that a couple of parties have filed SPH Notices this month already - Australian Ethical Investments, and Ampfield Management LP which seems to be an american funds manager.

So another 5m already today will be augmenting someones holding and may lead to another filer or an amendment to an existing filing. I know there is a seller for every buyer but this suggests the parties accumulating see opportunity even if the share price is not advancing significantly just now.

Yes, the fact it isn’t crashing the SP with these volumes is pretty decent 👍

[Sideshow Bob]

https://www.nzx.com/announcements/431510

Financial Highlights

•Achieved positive Free Cash Flow (to the firm) of $1.3m in FY24 compared to negative free cash flow (to the firm) of $29.9m in FY23. This improvement is the result of growth in units, price increases and cost control.
•Revenue increased to $182.0m for FY24 from reported revenue of $174.9m in FY23 and normalised revenue of $165.3m in FY23. This represents a 10.1% increase against normalised revenue for the prior comparable period, normalising for the one-off acquisition accounting adjustment of $9.6m in FY23 relating to the Coretex merger. Growth in revenue was delivered across all markets.
•Annualised Monthly Recurring Revenue increased by $24.1m (15.7%) to $177.8m in FY24 from $153.7m in FY23, reflecting growth across all markets and support by favourable foreign exchange.
•EBIT of $0.8m in FY24 compared to $1.7m in FY23. Normalised EBIT increased to $4.4m in FY24 up from $(4.5)m in FY23. Normalised for 4G hardware upgrade costs of $3.6m in FY24 and integration costs of $3.4m and one-off acquisition revenue of $9.6m in FY23.

Operational Highlights
•Customer Retention of Contracted Units remains high at 94.8% in FY24 (NZ 95%; AU 96%; NA 95%), same as last year.
•Key enterprise customer wins and expansions during the period. Programmed in Australia (+3k connections), renewed and expanded Boral (+1.3k connections) and SkyBitz (+1.5k) in Australia and Kinetic (owner of NZ Bus +1k connections) in New Zealand, and expanded US Foods (+1.3k connections) in North America. 68% of new enterprise units were expansions from existing customers, demonstrating strong customer value from EROAD.
•250,000 units milestone passed. Globally, EROAD has now hit the 250,000 unit milestone, driving operating scale.

[winner69]

A few numbers in the announcement don’t seem to agree with financial statements

Never mind ..it reads +ve

http://nzx-prod-s7fsd7f98s.s3-websit...510/419032.pdf

[winner69]

To me Free Cash Flow was negative $6.6m

Headline says: EROAD achieves positive free cash flow in FY24

Then they FCF of $1.3n (to the firm)

That’s a new phrase to me but suppose its meaningful.

Must investigate

[ronaldson]

Yes, and another SPH Notice lodged by Ampfield indicating the acquisition of a further 4m+ shares in the six days since the previous Notice. They are buying in big time.

Interesting that they are USA based, where ERD is leveraging the Cortex acquisition as best it can currently and has appointed a dedicated CEO for that jurisdiction. Clearly they have formed a view about the future for this company.

[winner69]

I note no mention of the $7.0m loss before tax in the narratives

Suppose it’s the story that counts