EROAD reports $3.6m loss

Logistics and fleet management company ERoad has reported a net loss of $3.6 million in its latest business update.

The figures for the six months to September 2017 also show revenue is up by 35% over the same period last year to $20.9 million.

The company has pointed to ramped up investment in the United States as a reason for the loss.

Board chairman Michael Bushby says the investment in strategy and business planning for North America is beginning to show returns with the US business selling 3634 units in the six months to September 2017 compared with 801 units previously.

“It is important to acknowledge the ERoad team for what have been significant achievements in the six months, particularly as it has been a challenging time for them, with a restructure of the business, and saying farewell to a number of good people who had helped us on our journey so far,” Bushby says.

Chief executive Steven Newman says health and safety services, such as driver behaviour, are now as strong a driver of sales as electronic road user charges services, which continue to grow well.

“Our customers are improving health and safety thanks to services that support safer driver behaviour. And road planners and policy makers now have high quality network data from the activity of around 50,000 vehicles on our platform.

“Road transport accounts for around 15% of fuel used in New Zealand, and our customers are achieving, on average, fuel savings of around 6%, representing a significant cost saving and carbon saving to the economy,” Newman says.

ERoad shares have risen from just under $2 dollars to over $3 dollars in the past year making it one of the top performers on the NZ stock exchange.