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27 November 2014

Gentrack Group Limited (NZX/ASX: GTK) Annual Result for the Year Ended 30 September 2014

Please find attached the financial information required by Listing Rule 4.3A together with the Gentrack Group Limited audited financial statements for the year ended 30 September 2014 and the year-end presentation to investors.

Appendix 3A.1 – Notification of dividend/distribution has been filed separately.

Attached:

Appendix 4E: Results for announcement to the market
Media release
Audited financial statements and notes
Investor presentation

The Annual Report will be released on 18 December 2014.

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Jon Kershaw

Company Secretary

Gentrack Group Ltd | www.gentrack.com | [email protected] | ARBN 169 195 751

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Appendix 4E

27 November 2014

Gentrack Group Limited (GTK) ARBN 169 195 751 Incorporated in New Zealand

Gentrack Group Limited – Results for announcement to the market

Reporting Period	12 months to 30 September 2014
Previous Reporting Period	12 months to 30 September 2013
	Amount	Percentage
	NZ $’000	Change
Operating Revenues from Ordinary Activities	38,531	Down 4%
Profit from Ordinary Activities after Tax
(excluding discontinued operations)	3,383	Down 49%
attributable to Security Holders
Net Profit attributable to Security Holders	3,383	Down 49%
Underlying EBITDA*	13,042	Down 8.5%

*Underlying EBITDA is a non-GAAP profit measure that is equal to “ profit before depreciation, amortisation, financing, and tax” before “ non-operating costs. Non-operating costs included $3.85m of costs relating to the June 2014 IPO.

Interim/ Final Dividend (NZ$)	Amount per Security	Franked amount per Security
Final Dividend	3.60cps	0.6171cps
Record date	11 December 2014
Dividend payment date	19 December 2014

For Australian residents with a shareholding of less than 10%, a supplementary dividend will be available to offset NZ NRWT.

Dividends during the year

NZ$		Amount per	NZ Imputation	Supplementary	Date paid/ payable
		security	credit per	Dividend per
			security	security
2014	Special Dividend	32.00cps	12.4448cps	5.6471cps	11 March 2014
2014	Final Dividend	3.60cps	1.40cps	0.6353cps	19 December 2014

www.gentrack.com

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Net tangible assets per share increased to NZ$0.07 per share (2013: -NZ$0.50 per share**).

**restated for 3:1 share split in May 2014.

Commentary on results

For commentary on the results please refer to the investor presentation and media release attached. Additional Appendix 4E disclosures can be found in the 2014 audited financial statements.

Financial Information

This Appendix 4E should be read in conjunction with the audited financial statements for the year ended 30 September 2014.

The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice. They comply with New Zealand Equivalents to International Financial Reporting Standards (‘NZ IFRS’).

This report is based on the audited financial statements and the auditors have issued an unqualified audit opinion.

www.gentrack.com

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Media Release

Gentrack announces FY14 results and reaffirms FY15 guidance

AUCKLAND, New Zealand - 27 November 2014; Gentrack Group Limited (GTK), a market leader in software solutions for utilities and airports, today released its full year results to 30 September 2014.

Total operating revenue for the full year ended 30 September 2014 was NZ$38.5 million (Prospectus: $40.6 million) with underlying EBITDA[1] of $13.0 million (Prospectus: $14.1 million) and NPAT of $3.4 million (Prospectus: $3.7 million). A Final Dividend of 3.6 cents per share in line with the Prospectus will be paid on 19 December 2014. The dividend will be fully imputed for New Zealand investors and 40% Franked for Australian investors.

This result is an improvement on the guidance provided to the market on 1 August 2014 but is below the 26 May 2014 Prospectus forecast.

Gentrack Chief Executive, James Docking, said “Operationally 2014 was a good year for Gentrack. We had a successful Go-Live with a complex enterprise implementation of our first network billing product in Australia which has established our credentials in that market. Our first water billing project in the UK has gone well and will Go Live in early 2015. Airport 20/20 set a sales record and is now used by most of the large Airports in Australasia. Our profitable UK business grew by 40%, and we finished the year with a $5.2m cash balance. Unfortunately, a couple of unforeseen project issues impacted the 2014 results, but we remain well positioned for further growth in Australia and the UK.”

During 2014 Gentrack continued to invest substantially in the development of its Utility and Airport products. Gentrack Velocity now provides utility companies with a Cloud ready CRM and billing product that is well proven with existing installations. New features, such as the ability to bundle electricity, gas and broadband into a single consumer offer, and a self-service web portal for consumer access, deliver the latest utility requirements. Both the Utility and Airport products launched new management dashboards in 2014 which aid in improving the operational efficiency and performance of Gentrack customers. During 2014 Gentrack progressed twelve new installation and upgrade projects.

Gentrack Chairman John Clifford said “In line with the May 2014 Prospectus we expect to deliver solid growth in the year to 30 September 2015 with a 16% increase in revenue to $44.7m, an EBITDA of $15.5m and NPAT of $9.3m. Achieving this requires us to win several new projects in the first half of the year from a healthy pipeline of opportunities we are currently working on with both new and existing customers. We expect to be in a position to update the market on progress on this with our half year results to 31 March 2015.”

All figures are presented in NZ$.

1 Underlying EBITDA is a non-GAAP profit measure that in the opinion of Gentrack’s directors, best reflects the financial performance of the business. It is defined and reconciled to GAAP profit on page 3 of this release.

Gentrack Group Ltd | www.gentrack.com | [email protected]

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*****

Invitation to Results Briefing

Investors are invited to a conference call on 27th November at 10:30am NZT / 8:30am AEST to discuss Gentrack’s results for the year ended 30 September 2014.

The conference call details are:

NZ Dial: 0800-456-282 Australia Dial: 1800-505-544 PIN 5523397

ENDS

Contact:

Jon Kershaw; Company Secretary

+64 9 9666090

About Gentrack

Auckland-based Gentrack is a developer of specialist software for energy utilities, water companies and airports around the world. It employs 200 people in offices in Auckland, Melbourne, Brisbane and London and services more than 150 utility and airport sites in 17 countries.

Gentrack is comprised of two leading software products - Gentrack Velocity and Airport 20/20. Gentrack Velocity is a specialist billing and CRM product designed for Energy utilities and Water companies. Airport 20/20 is a comprehensive Airport Management System engineered to optimise an airport’s operations and enhance the passenger experience.

Gentrack Group Ltd | www.gentrack.com | [email protected]

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Appendix

NON-GAAP PROFIT REPORTING MEASURES

Gentrack’s standard profit measure prepared under New Zealand GAAP is net profit. Gentrack has used non-GAAP profit measures when discussing financial performance in this document. The directors and management believe that these measures provide useful information as they are used internally to evaluate performance of business units, to establish operational goals and to allocate resources.

Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand International Financial Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation or considered as a substitute for measures reported by Gentrack in accordance with NZ IFRS.

Definitions

EBITDA: Earnings before net finance expense, tax, depreciation and amortisation.

Underlying EBITDA: EBITDA adjusted for non-operating expenses.

GAAP to non-GAAP profit reconciliation

	Actual	Prospective	Actual
	30-Sep-14	30-Sep-14	30-Sep-13
EBITDA and UnderlyingEBITDA	$000s	$000s	$000s
Reported net profit for the period (GAAP)	3,383	3,743	6,636
Add back: net finance expense1	910	1,200	2,550
Add back: income tax expense1	2,633	3,030	2,685
Add back: depreciation & amortisation1	2,251	2,264	2,207
EBITDA	9,177	10,237	14,078
Adjusted for:
Non-operatingcosts1	3,865	3,866	170
Underlying EBITDA	13,042	14,103	14,248

1 Extracted from audited financial statements.

Gentrack Group Ltd | www.gentrack.com | [email protected]

G e n t r a c k G r o u p L i m i t e d F i n a n c i a l S t a t e m e n t s

F o r t h e y e a r e n d e d 3 0 S e p t e m b e r 2 0 1 4

GENTRACK GROUP FINANCIAL STATEMENTS 2014_

www.gentrack.com

TA B L E O F C O N T E N T S _

Company Directory 3 Auditor’s Report 4 Directors’ Responsibility Statement 6 Statement of Comprehensive Income 7 Statement of Financial Position 8	Statement of Changes in Equity 9
	Statement of Cash Flows 10
	Notes to the Financial Statements 11
	Disclosures 39

2 / TA B L E O F C O N T E N T S

C O M PA N Y D I R E C T O R Y _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

REGISTERED OFFICE

Gentrack Group Limited 25 College Hill, Freemans Bay, Auckland 1011, New Zealand Phone: +64 9 966 6090 Facsimile: +64 9 376 7223

Level 9, 390 St Kilda Road, Melbourne, VIC 3004 Australia Phone: +61 3 9867 9100 Facsimile: +61 9867 9140

AUDITOR

KPMG

18 Viaduct Harbour Avenue, Auckland, 1140 Phone: +64 9 367 5800 Facsimile: +64 9 367 5875

LEGAL ADVISERS

BELL GULLY KENSINGTON SWAN

POSTAL ADDRESS

BANKERS

PO Box 3288, Shortland Street, Auckland 1140 New Zealand

ANZ LIMITED BARCLAYS PLC

NEW ZEALAND INCORPORATION NUMBER

3768390

SHARE REGISTRAR

NEW ZEALAND

AUSTRALIAN REGISTERED BODY NUMBER (ARBN)

LINK MARKET SERVICES LIMITED

169 195 751

DIRECTORS

John Clifford, Chairman Andy Coupe James Docking Graham Shaw Leigh Warren

COMPANY SECRETARY

Jon Kershaw

Level 7, Zurich House, 21 Queen Street, Auckland 1010 PO Box 91 976, Auckland 1142 Phone: +64 9 375 5998 Facsimile: +64 9 375 5990 Email: [email protected]

AUSTRALIA

LINK MARKET SERVICES LIMITED

Level 12, 680 George Street, Sydney, NSW 2000 Locked Bag A14, Sydney South, NSW 1235 Phone: +61 1300 554 474 Facsimile: +2 9287 0303 Email: [email protected]

C O M PA N Y D I R E C T O R Y / 3

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Independent auditor’s report

To the shareholders of Gentrack Group Limited

Report on the company and group fi nancial statements

We have audited the accompanying fi nancial statements of Gentrack Group Limited (‘’the company’’) and the group, comprising the company and its subsidiaries, on pages 7 to 38. The fi nancial statements comprise the statements of fi nancial position as at 30 September 2014, the statements of comprehensive income, changes in equity and cash fl ows for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, for both the company and the group.

Directors’ responsibility for the company and group fi nancial statements

The directors are responsible for the preparation of company and group fi nancial statements in accordance with generally accepted accounting practice in New Zealand and International Financial Reporting Standards that give a true and fair view of the matters to which they relate, and for such internal control as the directors determine is necessary to enable the preparation of company and group fi nancial statements that are free from material misstatement whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these company and group fi nancial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the company and group fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the company and group fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company and group’s preparation of the fi nancial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company and group’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Our fi rm has also provided other services to the company and group in relation to taxation and audit and advisory work in connection with the Initial Public Offering. Subject to certain restrictions, partners and employees of our fi rm may also deal with the company and group on normal terms within the ordinary course of trading activities of the business of the company and group. These matters have not impaired our independence as auditor of the company and group. The fi rm has no other relationship with, or interest in, the company and group.

4 / A U D I T O R ’ S R E P O R T

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Opinion

In our opinion the fi nancial statements on pages 7 to 38:

comply with generally accepted accounting practice in New Zealand;
give a true and fair view of the fi nancial position of the company and the group as at 30 September 2014 and of the fi nancial performance and cash fl ows of the company and the group for the year then ended.

Report on other legal and regulatory requirements

In accordance with the requirements of sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993, we report that:

we have obtained all the information and explanations that we have required; and
in our opinion, proper accounting records have been kept by Gentrack Group Limited as far as appears from our examination of those records.

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26 November 2014 Auckland

A U D I T O R ’ S R E P O R T / 5

D I R E C T O R S ’ R E S P O N S I B I L I T Y S TAT E M E N T _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

In the opinion of the directors of Gentrack Group the financial statements and notes, on pages 7 to 38, comply with the New Zealand Generally Accepted Accounting Practice and give a true and fair view of the financial position of the Group and Company as at 30 September 2014 and the results of operations and cash flows for the year ended on that date. They have been prepared using the appropriate accounting policies, which have been consistently applied and supported by reasonable judgements and estimates.

The directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the determination of the financial position of the company and facilitate compliance of the financial statements with the Financial Reporting Act 1993.

The directors consider that they have taken adequate steps to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide reasonable assurance as to the integrity and reliability of the financial statements.

The directors are pleased to present the financial statements of Gentrack Group Limited for the year ended 30 September 2014.

For and on behalf of the Board of Directors:

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James Docking

Chief Executive Officer

Date: 26 November 2014

John Clifford Chairman Date: 26 November 2014

6 / D I R E C T O R S R E S P O N S I B I L I T Y S TAT E M E N T

S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

($000)
	NOTES	2014	2013	2014	2013
Revenue	3	38,531	40,126	-.	-.
Expenditure	4	(25,489)	(25,878)	(277)	(177)
Profit before depreciation, amortisation,
non-operating costs, financing and tax		13,042	14,248	(277)	(177)
Depreciation and amortisation	5	(2,251)	(2,207)	-.	-.
Non-operating costs	6	(3,865)	(170)	(3,865)	(87)
Profit before financing and tax		6,926	11,871	(4,142)	(264)
Finance income		555	94	6,331	34,682
Finance expense		(1,465)	(2,644)	(1,512)	(1,893)
Net finance (expense)/income	7	(910)	(2,550)	4,819	32,789
Profit before tax		6,016	9,321	677	32,525
Income tax (expense)/benefit	8	(2,633)	(2,685)	432	541
Profit attributable to the shareholders
of the company		3,383	6,636	1,109	33,066
OTHER COMPREHENSIVE INCOME
Exchange differences on translation of
foreign operations	12	(347)	229	-.	-.
Total comprehensive income
for the year		3,036	6,865	1,109	33,066
EARNINGS PER SHARE FROM PROFIT
ATTRIBUTABLE TO ORDINARY EQUITY
HOLDERS OF THE PARENT (EXPRESSED IN
DOLLARS PER SHARE)
Basic and diluted earnings per share –
restated for 3:1 share split	10	$0.05	$0.12

The accompanying notes form part of these financial statements.

S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E / 7

S TAT E M E N T O F F I N A N C I A L P O S I T I O N _

AS AT 30 SEPTEMBER 2014

($000)
	NOTES	2014	2013	2014	2013
CURRENT ASSETS
Cash and cash equivalents	14	5,249	143	10	-.
Trade and other receivables	15	10,231	11,196	72	292
Amount owing from subsidiary	24	-.	-.	201	402
Total current assets		15,480	11,339	283	694
NON-CURRENT ASSETS
Property, plant and equipment	16	565	700	-.	-.
Goodwill	17	40,277	40,277	-.	-.
Intangibles	18	20,233	22,275	-.	-.
Loan to related parties	24	-.	-.	6,389	288
Deferred tax asset	9	562	627	-.	-.
Investment	19	-.	-.	86,000	86,000
Total non-current assets		61,637	63,879	92,389	86,288
Total assets		77,117	75,218	92,672	86,982
CURRENT LIABILITIES
Trade payables and accruals	20	1,426	1,972	141	217
Amount owing to subsidiary	24	-.	-.	153	318
Deferred revenues		3,957	2,944	-.	-.
GST payable		339	351	-.	-.
Employee entitlements	21	1,324	1,164	-.	-.
Income tax payable		719	1,923	-.	-.
Derivative financial liabilities		-.	111	-.	-.
Borrowings	22	6	4,585	-.	4,552
Total current liabilities		7,771	13,050	294	5,087
NON-CURRENT LIABILITIES
Employee entitlements	21	279	242	-.	-.
Borrowings	22	-.	24,030	-.	24,030
Loan from related parties	24	-.	-.	4,597	36
Deferred tax liabilities	9	3,371	4,079	-.	-.
Total non-current liabilities		3,650	28,351	4,597	24,066
Total liabilities		11,421	41,401	4,891	29,153
Net assets		65,696	33,817	87,781	57,829
EQUITY
Share capital	11	60,396	25,398	60,396	25,398
Retained earnings	13	5,179	7,951	27,385	32,431
Reserves	12	121	468	-.	-.
Total shareholders’ equity		65,696	33,817	87,781	57,829

The accompanying notes form part of these financial statements.

8 / S TAT E M E N T O F F I N A N C I A L P O S I T I O N

S TAT E M E N T O F C H A N G E S I N E Q U I T Y _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

GROUP		SHARE	RETAINED	TRANSLATION	TOTAL
($000)	NOTES	CAPITAL	EARNINGS	RESERVE	EQUITY
Balance as at 1 October 2012		25,398	1,315	239	26,952
Profit attributable to the shareholders
of the company		-.	6,636	-.	6,636
Other comprehensive income	12	-.	-.	229	229
Total comprehensive income for the
year, net of tax		-.	6,636	229	6,865
Balance as at 30 September 2013		25,398	7,951	468	33,817
Balance as at 1 October 2013		25,398	7,951	468	33,817
Profit attributable to the shareholders
of the company		-.	3,383	-.	3,383
Other comprehensive income	12	-.	-.	(347)	(347)
Total comprehensive income/(loss) for the
year, net of tax		-.	3,383	(347)	3,036
Transactions with owners: Issue of capital	11	34,998	-.	-.	34,998
Dividend paid (prior to Initial Public Offering)		-.	(6,155)	-.	(6,155)
Balance at 30 September 2014		60,396	5,179	121	65,696
PARENT		SHARE	RETAINED	TRANSLATION
$000	NOTES	CAPITAL	EARNINGS	RESERVE	TOTAL
Balance as at 1 October 2012		25,398	(635)	-.	24,763
Profit attributable to the shareholders
of the company		-.	33,066	-.	33,066
Total comprehensive income for the
year, net of tax		-.	33,066	-.	33,066
Balance as at 30 September 2013		25,398	32,431	-.	57,829
Balance at 1 October 2013		25,398	32,431	-.	57,829
Profit attributable to the shareholders
of the company		-.	1,109	-.	1,109
Total comprehensive income for the
year, net of tax		-.	1,109	-.	1,109
Transactions with owners: Issue of capital	11	34,998	-.	-.	34,998
Dividend paid (prior to Initial Public Offering)		-.	(6,155)	-.	(6,155)
Balance at 30 September 2014		60,396	27,385	-.	87,781

The accompanying notes form part of these financial statements.

S TAT E M E N T O F C H A N G E S I N E Q U I T Y / 9

S TAT E M E N T O F C A S H F L O W S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

($000)
	NOTES	2014	2013	2014	2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		39,989	40,101	-.	-.
Payments to suppliers and employees		(29,230)	(26,119)	(4,054)	(388)
Income tax paid		(4,467)	(2,404)	-.	-.
Net cash inflow/(outflow) from	29(a)	6,292	11,578	(4,054)	(388)
operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment		(110)	(460)	-.	-.
Net cash outflow from investing activities		(110)	(460)	-.	-.
CASH FLOWS FROM FINANCING ACTIVITIES
Gross proceeds from issue of share capital	11	36,000	-.	36,000	-.
Costs in relation to issue of share capital		(915)	-.	(915)	-.
Drawdown of borrowings		6,155	-.	6,155	-.
Repayment of borrowings		(34,765)	(9,080)	(34,737)	(9,063)
Dividends paid prior to Initial Public Offering		(6,155)	-.	(6,155)	-.
Net interest paid		(1,396)	(2,287)	(1,303)	(1,972)
Transfers with subsidiaries		-.	-.	5,019	11,423
Net cash (outflow)/inflow from financing
activities		(1,076)	(11,367)	4,064	388
Net increase/(decrease) in cash held		5,106	(249)	10	-..
Cash at beginning of the financial year		143	392	-.	-.
Closing cash and cash equivalents		5,249	143	10	-.

The accompanying notes form part of these financial statements.

1 0 / S TAT E M E N T O F C A S H F L O W S

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Gentrack Group Limited is a limited liability company, domiciled and incorporated in New Zealand and registered under the New Zealand Companies Act 1993. The registered office of the Company is 25 College Hill, Auckland 1011, New Zealand.

The financial statements presented are for Gentrack Group Limited (the ‘Parent’/’Company’) and its subsidiaries (together ‘the Group’) for the year ended 30 September 2014. Last year comparatives are for the year ended 30 September 2013.

Gentrack Group Limited is an issuer for the purposes of the Financial Reporting Act 1993 and is listed on the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX).

The consolidated financial statements of the Group for the year ended 30 September 2014 were authorised for issue in accordance with a resolution of the directors on 26 November 2014.

The Group’s principal activity is the development, integration, and support of enterprise billing and customer management software solutions for the utility (energy and water) and airport industries.

(a) CHANGES IN ACCOUNTING POLICY

The accounting policies adopted are consistent with those of the previous year.

(b) BASIS OF PREPARATION

The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (‘NZ GAAP’). They comply with the New Zealand Equivalents to International Financial Reporting Standards (‘NZ IFRS’) and other applicable Financial Reporting Standards as appropriate to profit-oriented entities. The financial statements comply with International Financial Reporting Standards (‘IFRS’).

The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993 and the Companies Act 1993.

The Company and Group are profit-oriented entities for financial reporting purposes.

The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: foreign exchange contracts and derivative financial instruments.

From 1 April 2014, the new Financial Reporting Act 2013 (‘FRA 2013’) has come into force replacing the Financial Reporting Act 1993, this is effective for all for-profit entities with reporting periods beginning on or after 1 April 2014. This will be effective for the Group’s 30 September 2015 year end. It is expected that the change in legislation will have no material impact on the Company’s obligation to prepare general purpose financial statements.

In addition to the change in legislation the External Reporting Board of New Zealand (‘XRB’) has released a new accounting standards framework which establishes the financial standards to be applied to entities with statutory financial reporting obligations. The Group is currently reporting under NZ IFRS. Under the new XRB framework management expects that the Group is expected to continue to apply NZ IRFS as applicable for Tier 1 for profit entities. Management

expects that this will have no material impact on the preparation and disclosures included in the financial statements.

Presentation currency

The financial statements are presented in New Zealand dollars unless otherwise stated and all values are rounded to the nearest $1,000 (where rounding is applicable). The functional currency is New Zealand dollars (‘NZD’).

Use of estimate and judgements

In preparing the financial statements, management has to make certain judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. The actual outcome may differ from these judgements, estimates and assumptions. Judgements, estimates and assumptions are reviewed on an ongoing basis and are based on historical experience and various other factors, including expectations about future events, which are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The significant judgements, estimates and assumptions made by management in the preparation of these financial statements are outlined below.

(i) Impairment of goodwill and other assets

The Company tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1(l). The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions. Refer to note 17 for details of these assumptions and the potential impact of changes to the assumptions. All other assets are reviewed for indicators or object evidence of impairment. If indicators or objective evidence exists, the recoverable amount is reviewed.

(ii) Long service leave

A liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at balance date. In determining the present value of the liability, attrition rates and pay increases through inflation have been taken into account.

(iii) Revenue recognition

Revenue recognition involves certain revenue streams being recognised based on the stage of completion. This is discussed in more detail in note 1(d).

(iv) Doubtful debts

In providing for doubtful debts, management have used assumptions and estimates. The actual outcome may differ from the reported position.

(c) BASIS OF CONSOLIDATION

Business combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the exposure or right to variable

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 1 1

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

returns from involvement with the entity and the ability to affect those returns through power over the entity.

The Group recognises the fair value of all identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured as the excess cost of the acquisition over the recognised assets and liabilities. When the excess is negative (negative goodwill), the amount is recognised immediately in the Statement of Comprehensive Income.

minor software patches. At each reporting date, the unearned portion of the revenue is assessed and deferred to be recognised over the period of service.

(iv) Project services revenue

Revenue from project services agreements is based on the stage of completion, typically in accordance with the achievement of contract milestones and/or hours expended, and forecast.

(v) Deferred revenues

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing control, potential voting rights that currently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group.

Investments in subsidiaries are carried at their cost of acquisition in the Company’s financial statements.

Transactions eliminated on consolidation

Intra-group balances and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

(d) REVENUE

Revenues are recognised at the fair value of the consideration received or receivable.

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The Group bases its estimates on the historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue is recognised for the major business activities as follows:

(i) Software Licence Fee Revenue

Revenue from licence fees due to software sales is recognised on the transferring of significant risks and rewards of control of the licensed software under agreement between the Company and the customer.

(ii) Implementation and consulting services revenue for licensed software

Revenue from implementation and consulting services attributable to licensed software is recognised based on the stage of completion, typically in accordance with the achievement of contract milestones and/or hours expended, and forecast.

(iii) Post sales customer support revenue for licensed software

Post sales customer support (‘PSCS’) revenue for licensed software comprises fees for ongoing upgrades, minor software revisions and helpline support. PSCS revenue is allocated between annual fees for helpline support and fees for rights of access to ongoing upgrades and

Consideration received prior to the goods or service being rendered is recognised in the Statement of Financial Position as deferred revenues.

(vi) Accrued income

Revenue for which goods or services have been rendered but invoices have not been issued is recognised within the Statement of Financial Position as accrued income and included within trade and other receivables.

(vii) Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. When a grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

(e) NET FINANCE COST

Finance income comprises interest income, dividend income, gains on the disposal of available-for-sale financial assets, changes in the fair value of financial assets at fair value through profit and loss, foreign currency gains, and gains on hedging instruments that are recognised in profit and loss. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised on the date that the Company’s right to receive payments is established, which in the case of quoted securities is the ex-dividend date.

Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, foreign currency losses, changes in the fair value of the financial assets at fair value through profit and loss, impairment losses recognised on the financial assets (except for trade receivables), losses on the disposal of available-forsale financial assets and losses on hedging instruments that are recognised in profit and loss. All borrowing costs are recognised in profit and loss using the effective interest method.

(f) INCOME TAX

In the Statement of Comprehensive Income the income tax expense comprises current and deferred tax.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.

Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.

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FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related benefits will be realised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

the average monthly exchange rates for income and expenses. The difference arising from the translation of the Statements of Financial Position at the closing rates and the Statement of Comprehensive Income at the average rates is recorded within the foreign currency translation reserve.

(i) RESEARCH AND DEVELOPMENT COSTS

Research and development expenses include payroll, employee benefits and other employee-related costs associated with product development. Technological feasibility for software products is reached shortly before products are released for commercial sale to customers. Costs incurred after technological feasibility is established are not material, and accordingly, all research and development costs are expensed when incurred.

(j) PROPERTY, PLANT AND EQUIPMENT

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied by the same taxation authority on either the same taxable entity or different entities where there is an intention to settle the balance on a net basis.

Additional income tax expenses that arise from the distribution of cash dividends are recognised at the same time that the liability to pay the related dividend is recognised. The Group does not distribute non-cash assets as dividends to its shareholders.

(g) SALES TAX

The Statement of Comprehensive Income and the Statements of Cash Flows have been prepared so that all components are stated exclusive of sales tax, except where sales tax is not recoverable. All items in the Statements of Financial Position are stated net of sales tax with the exception of receivables and payables, which include sales tax invoiced.

Commitments and contingencies are disclosed net of the amount of sales tax recoverable from, or payable to, the taxation authority.

Sales tax includes Goods and Services Tax (GST) and Value Added Tax (VAT) where applicable.

(h) FOREIGN CURRENCY TRANSLATIONS

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in New Zealand dollars ($) (the ‘presentation currency’), which is the Company’s functional currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. Foreign exchange gains and losses are presented in the Statement of Comprehensive Income within net finance costs.

The Group translates the results of its foreign operations from their functional currencies to the presentation currency of the Group using the closing exchange rate at balance date for assets and liabilities and

In the Statement of Financial Position property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation on assets is calculated using the straight-line method to allocate the difference between their original costs and their residual values over their estimated useful lives, as follows:

•	Office equipment, fixtures and fittings	7 years
•	Computer equipment	3 to 7 years
•	Leasehold improvements	Terms of lease

The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are recognised in the Statement of Comprehensive Income.

(k) INTANGIBLE ASSETS

Goodwill

Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment.

Brands

Brands are considered to have an indefinite useful life and are held at cost and are not amortised, but are subject to an annual impairment test.

Other intangible asset

Other intangible assets consist of internal use software, acquired source code, and customer relationships. They have finite useful lives and are measured at cost less accumulated amortisation and accumulated impairment losses.

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FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

Amortisation

Except for goodwill and brands, intangible assets are amortised on a straight-line basis in the Statement of Comprehensive Income over their estimated useful lives, from the date that they are available for use.

The estimated useful lives for the current and comparative periods are as follows:

•	Acquired source code	10 years
•	Customer relationships	10 years
•	Internal use software	3 years

Amortisation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.

(l) IMPAIRMENT

At each reporting date, the Group accesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of the recoverable amount. Where the carrying value of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell or the asset’s value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

(m) LOANS AND RECEIVABLES

The Group classifies its financial assets as loans and receivables. Management determines the classifications of its financial assets at initial recognition. The Group’s loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the reporting date. These are classified as non-current assets. The Group’s loans and receivables comprise ‘trade and other receivables’ and cash and cash equivalents in the Statement of Financial Position. Loans and receivables are carried at amortised cost using the effective interest method. The Group assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired. Impairment testing of trade receivables is described in Note 1(o).

according to the original terms of the receivables. The carrying amount of an asset is reduced through the use of a provision account, and the amount of the loss is recognised in the Statement of Comprehensive Income. When a receivable is uncollectible, it is written off against the provision account for receivables. Subsequent recoveries of amounts previously written off are credited against the Statement of Comprehensive Income.

(p) TRADE AND OTHER PAYABLES

The Group recognises trade and other payables initially at fair value and subsequently measured at amortised cost using the effective interest method. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid. The amounts are unsecured, non-interest bearing and are usually paid within 45 days of recognition.

(q) PROVISIONS

The Group recognises a provision when it has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense in the Statement of Comprehensive Income.

(r) EMPLOYEE BENEFITS

Liabilities for wages and salaries, including non-monetary benefits, long service leave and annual leave are recognised in employee benefits in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Cost for non-accumulating sick leave is recognised when the leave is taken and measured at the rates paid or payable.

(s) EARNINGS PER SHARE

(n) CASH AND CASH EQUIVALENTS

Comprise cash in hand, deposits held at call with banks, other short-term and highly liquid investments with original maturities of six months or less.

(o) TRADE AND OTHER RECEIVABLES

The Group recognises trade and other receivables initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due

The Group presents basic and diluted earnings per share (‘EPS’) data for its ordinary shares.

Basic EPS is calculated by dividing the Group profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares on issue during the period.

Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares on issue for the effects of all dilutive potential ordinary shares.

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FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

(t) SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to the Company’s equity holders until the shares are cancelled or transferred outside the Group.

Preference share capital is classified as equity if it is non-redeemable and dividends are discretionary, or it is redeemable but only at the Company’s option. Dividends on preference share capital classified as equity are recognised as distributions within equity.

(u) SEGMENT REPORTING

An operating segment is a component of an entity that engages in business activities from which it may earn revenue and incur

expenses, whose operating results are regularly reviewed by the entity’s Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Operating segments, are aggregated for disclosure purposes where they have similar products and services, production processes, customers, distribution methods and regulatory environments.

(v) STANDARDS OR INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE AND RELEVANT TO THE GROUP

The following are the new or revised standards, amendments and interpretations applicable to the Group which are in issue that are not yet required to be adopted by the Group in preparing its financial statements for the year ended 30 September 2014:

STANDARD/INTERPRETATION	EFFECTIVE FOR ANNUAL REPORTING	EXPECTED TO BE INITIALLY APPLIED IN
	PERIODS BEGINNING ON OR AFTER	THE FINANCIAL YEAR ENDING
NZ IFRS 9 ‘Financial Instruments’	1 January 2017	30 September 2018
Addresses measurement and recognition of
financial assets and liabilities.
NZ IFRS 15 ‘Revenue from Contracts with	1 January 2018	30 September 2019
Customers’

Establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenues and cashflows from contracts with customers.

The financial statement impact of adoption of these standards, amendments and interpretations are not quantified by the management.

NZ IFRS 12 – Disclosure of Interests in other Entities
NZ IFRS 13 – Fair Value Measurement
Revised NZ IAS 27 – Separate Financial Statements

Adoption of new and revised standards, amendments and interpretations

The standards, amendments and interpretations listed below applicable to the Group became mandatory in the current year:

The adoption of these new and revised standards, amendments and interpretations did not have a material impact on the results or position reported by the Group.

NZ IFRS 10 – Consolidated Financial Statements
NZ IFRS 11 – Joint Arrangements

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

2 OPERATING SEGMENTS

The Group currently operates in two business segments, utility billing software and airport management software, as at 30 September 2014. These segments have been determined based on the reports reviewed by the Board (Chief Operating Decision Maker) to make strategic decisions.

The assets and liabilities of the Group are reported to and reviewed by the Chief Operating Decision Maker in total and are not allocated by business segment. Therefore, operating segment assets and liabilities are not disclosed.

($000)	UTILITY	AIRPORT	TOTAL
GROUP – FOR THE YEAR ENDED 30 SEPTEMBER 2014
External revenue	32,959	5,572	38,531
Total external expenditure	(21,035)	(4,454)	(25,489)
Segment contribution before depreciation, amortisation,
non-operating costs, financing and tax	11,924	1,118	13,042
Depreciation and amortisation	-.	-.	(2,251)
Non-operating costs	-.	-.	(3,865)
Finance income	-.	-.	555
Finance expense	-.	-.	(1,465)
Income tax expense	-.	-.	(2,633)
Profit attributable to the shareholders of the company	-.	-.	3,383
GROUP – FOR THE YEAR ENDED 30 SEPTEMBER 2013
External revenue	36,005	4,121	40,126
Total external expenditure	(22,430)	(3,448)	(25,878)
Segment contribution before depreciation, amortisation,
non-operating costs, financing and tax	13,575	673	14,248
Depreciation and amortisation	-.	-.	(2,207)
Non-operating costs	-.	-.	(170)
Finance income	-.	-.	94
Finance expense	-.	-.	(2,644)
Income tax expense	-.	-.	(2,685)
Profit attributable to the shareholders of the company	-.	-.	6,636
($000)		2014	2013
REVENUE BY DOMICILE OF ENTITY
Australia		18,859	20,643
New Zealand		19,672	19,483
		38,531	40,126
REVENUE BY DOMICILE OF CUSTOMER
Australia		21,088	21,274
New Zealand		10,324	12,987
United Kingdom		4,963	2,946
Rest of World		2,156	2,919
		38,531	40,126

Revenues of approximately $6,155,000 (2013: $4,681,000) are derived 10% or more of the Group’s revenue. These revenues are attributable from single customers and their subsidiaries from which revenue is to the utilities business segment.

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

3 REVENUE

($000)		GROUP			PARENT
	2014		2013	2014	2013
OPERATING REVENUE:
Recurring		11,798	11,062	-.	-.
Non-recurring		3,405	3,790	-.	-.
Professional services	22,948		24,834	-.	-.
	38,151		39,686	-.	-.
OTHER INCOME:
Government grants		380	440	-.	-.
Total revenue	38,531		40,126	-.	-.
Government grants revenue relates to a 3 year agreement for ‘Technology		awarded a new	grant in the current financial year, which is effective from
Development Grant Funding’ with Callaghan Innovations. Gentrack was		1 January 2014	to 31 December 2016.

4 EXPENDITURE

($000)
	2014	2013	2014	2013
Profit before income tax includes the following
specific expenses:
EMPLOYEE COSTS
Wages and salaries	16,591	16,088	-.	-.
Defined contribution plan contributions	570	512	-.	-.
AUDITORS’ REMUNERATION(1)	229	488	72	104
OTHER EXPENSES
Rental and operating lease costs	1,480	1,279	-.	-.
Loss on disposal of fixed assets	-.	2	-.	-.
Doubtful debts	448	(98)	-.	-.
Advertising and marketing	585	563	-.	-.
Communication costs	391	169	-.	-.
Consultancy	145	261	-.	-.
Contractors	814	1,326	-.	-.
Directors’ fees	213	130	119	-.
Staff recruitment	200	291	-.	-.
Travel related	894	1,319	-.	-.
Other operating expenses	2,929	3,548	86	73
Total expenditure	25,489	25,878	277	177
RESEARCH AND DEVELOPMENT EXPENSES
Total expenditure on research and development	2,221	2,528	-.	-.

Research and development expense includes a portion of employee costs shown above, directly attributable to research and development activities.

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

4 EXPENDITURE (CONTINUED)

($000)
	2014	2013	2014	2013
(1) AUDITORS’ REMUNERATION
KPMG – audit fees	120	115	52	36
KPMG – taxation	103	122	20	-.
KPMG – other services	6	251	-.	68
Auditors’ remuneration within expenditure	229	488	72	104
KPMG – costs relating to Initial Public Offering	312	-.	312	-.
Total fees paid to auditors	541	488	384	104

In 2014, other services of $6,000 included work undertaken in relation In 2014, KPMG charged $312,000 in relation to the Initial Public to employment matters. In 2013 these related to costs relating to the Offering process. These costs are included within ‘Costs relating to regulatory and tax services associated with internal restructuring of Initial Public Offering’ in Note 6: Non-operating costs. the Group.

5 DEPRECIATION AND AMORTISATION

($000)
	2014	2013	2014		2013
Depreciation	237	209		-.		-.
Amortisation	2,014	1,998		-.		-.
	2,251	2,207		-.		-.

6 NON-OPERATING COSTS

($000)		GROUP		PARENT
	2014	2013	2014	2013
Costs relating to Initial Public Offering	3,853	-.	3,853	-.
Subsidiary ownership charge costs	12	170	12	87
	3,865	170	3,865	87
In 2014 $3,853,000 of costs composing legal and institutional expenses	In	2014 $12,000 (2013: $170,000) of	costs composing tax and legal
were incurred in the Initial Public Offering effective 24 June 2014 that	expenses were incurred in the transfer of ownership of the subsidiary
did not relate to the issue of new shares.	company Talgentra New Zealand Holdings Limited from its Australian
	parent to Gentrack Group Limited.

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

7 NET FINANCE COST

($000)
	2014	2013	2014	2013
FINANCE INCOME
Interest income	23	94	-.	-.
Interest income – intercompany	-.	-.	200	83
Dividend received from subsidiary	-.	-.	6,044	59,779
Impairment of investment in subsidiary	-.	-.	-.	(25,236)
Foreign exchange gains	532	-.	87	56
	555	94	6,331	34,682
FINANCE EXPENSES
Interest expense	(1,394)	(1,922)	(1,360)	(1,893)
Interest expense – intercompany	-.	-.	(152)	-.
Foreign exchange losses	(71)	(722)	-.	-.
	(1,465)	(2,644)	(1,512)	(1,893)
Net finance cost	(910)	(2,550)	4,819	32,789

The dividend of $6,044,000 (2013: $59,779,000) shown under Finance income was received by the Company from its Australian subsidiary, Gentrack Group Australia Pty Limited.

8 INCOME TAX EXPENSES

($000)
	2014	2013	2014	2013
(a) RECONCILIATION OF EFFECTIVE TAX RATE
Profit after tax for the year	6,016	9,321	677	32,525
Income tax using the Company’s domestic tax rate of 28%	1,684	2,610	190	9,107
Non-deductible expense/(non-assessable income) (1)	1,096	112	(622)	(9,648)
Difference in tax rates of overseas subsidiaries	48	68	-.	-.
Over provided in prior periods	(195)	(105)	-.	-.
Income tax expense/(benefit)	2,633	2,685	(432)	(541)

(1) In 2014, included in non-deductible expenses are costs of

$3,808,000 which relate to the Initial Public Offering process.

($000)
	2014	2013	2014	2013
(b) CURRENT TAX CHARGE IS REPRESENTED AS FOLLOWS:
Tax payable in respect of current year	3,471	3,981	(432)	(541)
Deferred tax benefit	(643)	(1,191)	-.	-.
Over provided in prior periods	(195)	(105)	-.	-.
	2,633	2,685	(432)	(541)

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

9 DEFERRED TAX ASSET/(LIABILITY)

($000)		GROUP		PARENT
	2014	2013	2014	2013
RECOGNISED DEFERRED TAX ASSETS
Deferred tax assets are attributable to the following:
Trade and other receivables	(245)	(241)	-.	-.
Intangible assets	-.	53	-.	-.
Deferred income	266	267	-.	-.
Provisions including employee entitlements and doubtful
trade debtors	613	520	-.	-.
Other	(72)	28	-.	-.
Total deferred tax asset	562	627	-.	-.
RECOGNISED DEFERRED TAX LIABILITIES
Deferred tax liabilities are attributable to the following:
Trade and other receivables	(87)	-.	-.	-.
Intangible assets	(3,284)	(4,123)	-.	-.
Deferred income	-.	-.	-.	-.
Provisions including employee entitlements and doubtful
trade debtors	-.	59	-.	-.
Other	-.	(15)	-.	-.
Total deferred tax liabilities	(3,371)	(4,079)	-.	-.
The movement in temporary differences has been recognised in profit	expected to be realised; 28% for New Zealand entities and 30% for
or loss. Deferred tax has been recognised at a rate at which they are	Australian entities.

Movement in temporary timing differences during the year:

		TEMPORARY		TEMPORARY
GROUP	BALANCE	MOVEMENTS	BALANCE	MOVEMENTS	BALANCE
($000)	1 OCT 2012	RECOGNISED	30 SEPT 2013	RECOGNISED	30 SEPT 2014
Trade and other receivables	(352)	343	(9)	(323)	(332)
Intangible assets	(4,931)	861	(4,070)	786	(3,284)
Deferred income	98	169	267	(1)	266
Provisions including employee
entitlements and doubtful trade debtors	527	(180)	347	266	613
Other	15	(2)	13	(85)	(72)
Total	(4,643)	1,191	(3,452)	643	(2,809)

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

9 DEFERRED TAX ASSET/(LIABILITY) (CONTINUED)

IMPUTATION CREDITS

($000)
	2014	2013	2014		2013
NZ Imputation credits available for use in subsequent
reporting periods	850	3,523		-.		-.
Australian franking credits available for use in subsequent
reporting periods (AU$151,969; 2013: AU$1,468,704)	169	1,674		-.		-.

The New Zealand Imputation credits of $3,265,000 that were held prior to 24 June 2014 were lost as part of Initial Public Offering process.

10 EARNINGS PER SHARE

Basic and diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of shares on issue during the year. The Group has no shares or

other equity instruments that would have a potential dilutive impact on the number of ordinary shares on issue.


		2014	2013
Profit attributable to the shareholders of the company	($000)	3,383	6,636
Issued ordinary shares at 1 October (restated for 3:1 share split May 2014)	(000)	57,699	57,699
Effect of shares issued June 2014	(000)	4,028	-.
Basic weighted average number of ordinary shares issued	(000)	61,727	57,699
Basic and diluted earnings per share (dollars)		0.05	0.12

11 CAPITAL

PARENT	SHARES	ISSUED	SHARE	CAPITAL
(000)	2014	2013	2014	2013
Ordinary shares	19,233	14,893	25,398	18,617
Effect of share split prior to Initial Public Offering	38,466	-.	-.	-.
Issue of new ordinary shares	15,000	-.	36,000	-.
Transaction costs for issue of new shares	-.	-.	(1,002)	-.
Preference shares	-.	4,340	-.	6,781
	72,699	19,233	60,396	25,398

Ordinary shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company, and rank equally with regard to the Company’s residual assets.

On 21 May 2014, the 4,340,000 preference shares were converted into 4,340,000 ordinary shares for no additional consideration. The Company then resolved to split shares in a ratio of 3:1, resulting in 19,233,170 ordinary shares on issue in the Company being split into 57,699,510 ordinary shares for no additional consideration.

On 24 June 2014, Gentrack Group Limited received gross proceeds of $36 million from the allotment of 15 million new ordinary shares at an issue price of $2.40 per share, offered under the Investment Statement and Prospectus dated 26 May 2014 (as amended on 4 June 2014) for the Initial Public Offering of ordinary shares in Gentrack Group Limited.

Transaction costs directly related to the issue of new shares of $1,002,000 being primarily brokerage fees, were incurred in this transaction and reduce the share proceeds received.

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 2 1

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

12 RESERVES

($000)
	2014	2013	2014		2013
FOREIGN CURRENCY TRANSLATION RESERVE:
Opening balance	468	239		-.		-.
Exchange differences on translation of foreign operations	(347)	229		-.		-.
Balance at 30 September	121	468		-.		-.

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations into New Zealand dollars.

13 RETAINED EARNINGS

($000)
	2014	2013	2014	2013
Opening balance	7,951	1,315	32,431	(635)
Profit for the year	3,383	6,636	1,109	33,066
Dividend paid (prior to Initial Public Offering)	(6,155)	-.	(6,155)	-.
Balance at 30 September	5,179	7,951	27,385	32,431

14 CASH AND CASH EQUIVALENTS

($000)		GROUP			PARENT
	2014		2013	2014		2013
Bank balances	5,244		133	10		-.
Cash on hand	5		10	-.		-.
	5,249		143	10		-.
15 TRADE AND OTHER RECEIVABLES
($000)		GROUP			PARENT
	2014		2013	2014		2013
Trade debtors	8,881		7,323	-.		-.
Provision for doubtful debts	(448)		-.	-.		-.
Provision for warranty claims	(15)		(29)	-.		-.
Work in progress/accrued debtors	1,052		2,761	-.		-.
Sundry receivables and prepayments	761		1,141	72		292
	10,231		11,196	72		292

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

15 TRADE AND OTHER RECEIVABLES (CONTINUED)

(a) CREDIT RISK

The aging of the Group’s trade debtors at the reporting data was as follows:

($000)			ALLOWANCE FOR DOUBTFUL DEBTS	ALLOWANCE FOR DOUBTFUL DEBTS
	2014	2013	2014	2013
Not past due	6,576	3,658	-.	-.
Past due 1-30 days	457	2,316	-.	-.
Past due 31-60 days	644	839	-.	-.
Past due 61-90 days	127	205	-.	-.
Past due over 90 days	1,077	305	448	-.
	8,881	7,323	448	-.

The movement in the provision for doubtful debts during the year was as follows:

GROUP ($000)	2014	2013
Opening balance	-.	(98)
Increase in provision	448	98
Bad debt written off	-.	-.
Balance at 30 September	448	-.

16 PROPERTY, PLANT AND EQUIPMENT

GROUP ($000)	FURNITURE &	COMPUTER	LEASEHOLD	2014
	EQUIPMENT	EQUIPMENT	IMPROVEMENTS	TOTAL
YEAR ENDED 30 SEPTEMBER 2014
Opening balance	230	184	286	700
Additions	3	101	7	111
Disposals	(1)	-.	-.	(1)
Depreciation charge	(50)	(125)	(62)	(237)
Effect of movement in foreign exchange	(3)	(2)	(3)	(8)
Closing net book amount	179	158	228	565
Cost	667	1,097	444	2,208
Accumulated depreciation	(488)	(939)	(216)	(1,643)
Closing net book amount	179	158	228	565

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 2 3

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

16 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

GROUP ($000)	FURNITURE &	COMPUTER	LEASEHOLD	2013
	EQUIPMENT	EQUIPMENT	IMPROVEMENTS	TOTAL
YEAR ENDED 30 SEPTEMBER 2013
Opening balance	178	161	200	539
Additions	138	143	141	422
Disposals	(31)	(1)	-.	(32)
Depreciation charge	(48)	(112)	(49)	(209)
Effect of movement in foreign exchange	(7)	(7)	(6)	(20)
Closing net book amount	230	184	286	700
Cost	665	996	437	2,098
Accumulated depreciation	(435)	(812)	(151)	(1,398)
Closing net book amount	230	184	286	700

The parent company did not hold any property, plant and equipment in the current or prior year.

17 GOODWILL

($000)
	2014	2013
Opening balance	40,277	40,253
Net book amount arising on acquisition	-.	24
Closing net book amount	40,277	40,277
Goodwill allocated to Utility	37,377	37,377
Goodwill allocated to Airport	2,900	2,900
Net book amount	40,277	40,277

The goodwill arising out of the acquisition in 2012 has been allocated to the two cash generating units (CGUs) identified within the Group, namely the Utility and Airport operating units.

The tests conducted for impairment on these CGUs have been based on value-in-use calculations using projections derived from the Group’s five year forecast. The forecast has been based on management’s consideration of past performance and its assessment of future expectations.

In performing the value-in-use calculations for the CGUs the Group has applied a post-tax discount rate of 13.7%. The discount rate used reflects specific risks associated with business conducted within the CGU, including those risks associated with the countries in which the Group operates. The growth rate used to extrapolate cash flows

beyond the 5 year forecast is 2.5% (2013: 2.5%). This growth rate is consistent with forecast conducted in similar industry reports.

The value-in-use tests are sensitive to discount rates and the assumed growth in cash flows. The Group has performed detailed sensitivity analysis as part of the impairment testing to ensure that the results of its testing are reasonable and prudent. The sensitivity analysis showed that the value-in-use of the two Group’s CGUs equals their carrying value as follows:

An increase in the post-tax discount rate: Utilities to 38.2% (an increase of 179%); Airports to 25.0% (an increase of 82%)
A reduction in the growth rate of future cash flows: Utilities by 43%; Airports by 27%.

Consequently management believes that there is no impairment of either CGU.

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

18 INTANGIBLE ASSETS
($000)	SOFTWARE	CUSTOMER	BRAND NAMES	2014
		RELATIONSHIPS		TOTAL
YEAR ENDED 30 SEPTEMBER 2014
Opening balance	10,376	6,855	5,044	22,275
Additions	-.	-.	-.	-.
Amortisation charge	(1,214)	(826)	(2)	(2,042)
Closing net book amount	9,162	6,029	5,042	20,233
Cost	12,075	7,987	5,045	25,107
Accumulated amortisation	(2,913)	(1,958)	(3)	(4,874)
Net book amount	9,162	6,029	5,042	20,233
($000)	SOFTWARE	CUSTOMER	BRAND NAMES	2013
		RELATIONSHIPS		TOTAL
YEAR ENDED 30 SEPTEMBER 2013
Opening balance	11,508	7,653	5,024	24,185
Additions	66	-.	21	87
Amortisation charge	(1,198)	(798)	(1)	(1,997)
Closing net book amount	10,376	6,855	5,044	22,275
Cost	12,075	7,986	5,045	25,106
Accumulated amortisation	(1,699)	(1,131)	(1)	(2,831)
Net book amount	10,376	6,855	5,044	22,275

19 INVESTMENTS

($000)
	2014	2013
INVESTMENT IN GENTRACK GROUP AUSTRALIA PTY LIMITED
Consideration	57,236	57,236
Impairment	(25,236)	(25,236)
Carrying amount	32,000	32,000
INVESTMENT IN TALGENTRA NZ HOLDINGS LIMITED
Consideration	54,000	54,000
Carrying amount	54,000	54,000
Total investments	86,000	86,000

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 2 5

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

20 TRADE PAYABLES AND ACCRUALS

($000)			GROUP		PARENT	PARENT
		2014		2013	2014		2013
Trade creditors		646		328	-.		-.
Sundry accruals		780		1,644	141		217
		1,426		1,972	141		217
21 EMPLOYEE ENTITLEMENTS
($000)			GROUP		PARENT
		2014		2013	2014		2013
CURRENT
Liability for long service leave		284		316	-.		-.
Liability for annual leave		1,040		848	-.		-.
		1,324		1,164	-.		-.
NON-CURRENT
Liability for long service leave		279		242	-.		-.
		279		242	-.		-.
22 INTEREST BEARING LOANS AND BORROWINGS
($000)			GROUP		PARENT
		2014		2013	2014		2013
CURRENT BORROWINGS
Secured bank loan		-.		4,552	-.		4,552
Obligations under finance leases		6		33	-.		-.
		6		4,585	-.		4,552
NON-CURRENT BORROWINGS
Secured bank loan		-.		24,030	-.		24,030
Obligations under finance lease		-.		-.	-.		-.
		-.		24,030	-.		24,030
TERMS AND DEBT REPAYMENT SCHEDULE
$000	NOMINAL	YEAR OF		2014 FACE	2014 CARRYING	2013 CARRYING
	INTEREST	MATURITY		VALUE	AMOUNT		AMOUNT
Secured bank loan (a)	5.43%	2015		-.	-.		28,582

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

22 INTEREST BEARING LOANS AND BORROWINGS (CONTINUED)

The bank facility has a 3 year term which was fully drawn down on 15 May 2012. It is secured over all the assets of the Group. The Group is required to meet normal quarterly covenants based on interest, debt servicing and leverage ratios. At 30 September 2013 and up to 24 June 2014 the Group was operating comfortably within the mandated ratios. The loan was repaid in full on 24 June 2014.

During the year a further amount was drawn down of $6.155 million from ANZ Bank.

On 24 June 2014 a total of $36 million was raised through the issue of 15 million shares at $2.40 per share. These funds were used to repay the secured bank loan.

(b) Revolving facility

FUNDING ACTIVITIES

The recent listing on the New Zealand Stock Exchange and Australian Securities Exchange and the associated raising of equity has facilitated the extinguishment of all borrowings for the Group. The Group currently maintains a revolving facility with ANZ, on the terms outlined in note 22(b) below.

(a) Secured Bank Loan

The prior year borrowings represent a secured bank loan from ANZ Bank.

The Group has two revolving facilities with ANZ Bank, one in New Zealand and one in Australia, both of which are subject to annual review. The purpose of the facility is to provide funding for general working capital management. Interest is payable at a rate calculated as a base rate plus a pre-determined margin.

The Group has provided a General Security Deed over all the present and after-acquired property of all entities in the consolidated Group.

At 30 September 2014 there were nil balances drawn down.

FINANCE LEASE LIABILITIES

($000)	COMPUTER EQUIPMENT
		2014		2013
Less than one year	6		6	8
Between one and five years	-.		-.	25
More than five years	-.		-.	-.
	6		6	33

23 FINANCIAL RISK MANAGEMENT

The Group’s principal financial instruments include trade receivables and payables, cash and short term deposits, borrowings and loans and receivables from group companies.

As a result of the Group’s operations and sources of finance, it is exposed to credit risk, liquidity risk and market risks which include foreign currency risk, commodity price risk and interest risk. These risks are described below.

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s risk management policies are established to identify and

analyse the financial risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

Details of the significant accounting policies and methods adopted, included the criteria for recognition, the basis for measurement and the basis upon which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in the Statement of Accounting Policies to the financial statements.

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 2 7

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

23 FINANCIAL RISK MANAGEMENT (CONTINUED)

The Group holds the following financial instruments:

GROUP ($000)		2014			2013
	HELD FOR	LOANS AND	OTHER	HELD FOR	LOANS AND	OTHER
	TRADING	RECEIVABLES	AMORTISED	TRADING	RECEIVABLES	AMORTISED
			COST			COST
FINANCIAL ASSETS
Cash and cash equivalents	-.	5,249	-.	-.	143	-.
Trade and other receivables	-.	10,231	-.	-.	11,196	-.
	-.	15,480	-.	-.	11,339	-.
FINANCIAL LIABILITIES
Borrowings	-.	-.	6	-.	-.	28,615
Derivative liabilities	-.	-.	-.	111	-.	-.
Trade and other payables	-.	-.	646	-.	-.	328
	-.	-.	652	111	-.	28,943
PARENT ($000)		2014			2013
	HELD FOR	LOANS AND	OTHER	HELD FOR	LOANS AND	OTHER
	TRADING	RECEIVABLES	AMORTISED	TRADING	RECEIVABLES	AMORTISED
			COST			COST
FINANCIAL ASSETS
Cash and cash equivalents	-.	10	-.	-.	-.	-.
Amount owing from subsidiary	-.	6,590	-.	-.	690	-.
Trade and other receivables	-.	72	-.	-.	292	-.
	-.	6,672	-.	-.	982	-.
FINANCIAL LIABILITIES
Borrowings	-.	-.	-.	-.	-.	28,582
	-.	-.	-.	-.	-.	28,582

(a) CREDIT RISK

Credit risk is the risk of financial loss to the Group if a customer or counter party to a financial instrument fails to meet its contractual obligations, and it arises principally from the Group’s trade receivables from customers in the normal course of business.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The creditworthiness of a customer or counter party is determined by a number of qualitative and quantitative factors. Qualitative factors include external credit ratings (where available), payment history and strategic importance of customer or counter party. Quantitative factors include transaction size, net assets of customer or counter party, and ratio analysis on liquidity, cash flow and profitability.

In relation to trade receivables, it is the Group’s policy that all customers who wish to trade on terms are subject to credit verification on an ongoing basis with the intention of minimising bad debts. The nature of the Group’s trade receivables is represented by regular turnover of product and billing of customers based on the Group’s contractual payment terms.

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables.

The carrying amount of the Group’s financial assets represents the maximum credit exposure as summarised above.

Refer to Note 15 for an aging profile for the Group’s trade receivables at reporting date.

(b) LIQUIDITY RISK

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when they become due and payable. The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they become due and payable, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group has sufficient cash to meet its requirements in the foreseeable future. The Group has no debt.

Working capital is supported by a NZD$3.0m New Zealand and a AUD$0.6m Australian working capital facility both of which were unused as at 30 September 2014 (2013: $nil). Included in working capital is deferred revenues of $3,957,000 (2013: $2,944,000) which are not repayable in cash.

Maturities of financial liabilities

The following table details the Group’s contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements, as at the reporting date:

2 8 / N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

23 FINANCIAL RISK MANAGEMENT (CONTINUED)

GROUP 2014	1 YEAR OR	OVER 1 TO 5	OVER 5		TOTAL	CARRYING
($000)	LESS	YEARS	YEARS		CONTRACTUAL	AMOUNT
					CASH FLOWS	LIABILITIES
NON-DERIVATIVE FINANCIAL LIABILITIES
Trade and other payables	646	-.		-.	646	646
	646	-.		-.	646	646
PARENT 2014	1 YEAR OR	OVER 1 TO 5	OVER 5		TOTAL	CARRYING
($000)	LESS	YEARS	YEARS		CONTRACTUAL	AMOUNT
					CASH FLOWS	LIABILITIES
NON-DERIVATIVE FINANCIAL LIABILITIES
Trade and other payables	141	-.		-.	141	141
	141	-.		-.	141	141
GROUP 2013	1 YEAR OR	OVER 1 TO 5	OVER 5		TOTAL	CARRYING
($000)	LESS	YEARS	YEARS		CONTRACTUAL	AMOUNT
					CASH FLOWS	LIABILITIES
NON-DERIVATIVE FINANCIAL LIABILITIES
Borrowings	6,045	24,805		-.	30,850	28,615
Trade and other payables	328	-.		-.	328	328
DERIVATIVE FINANCIAL LIABILITIES
Interest rate swap contracts	111	-.		-.	111	111
	6,484	24,805		-.	31,289	29,054
PARENT 2013	1 YEAR OR	OVER 1 TO 5	OVER 5		TOTAL	CARRYING
($000)	LESS	YEARS	YEARS		CONTRACTUAL	AMOUNT
					CASH FLOWS	LIABILITIES
NON-DERIVATIVE FINANCIAL LIABILITIES
Borrowings	6,011	24,805		-.	30,816	28,582
Trade and other payables	217	-.		-.	217	217
Amount owing to subsidiary	318	36		-.	354	354
	6,546	24,841		-.	31,387	29,153

(c) MARKET RISK

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

Foreign currency risk

The Group is exposed to currency risk on sales transactions that are denominated in a currency other than the respective functional currencies of Group entities, primarily the Australian Dollar (AUD), Hong Kong Dollar (HKD), Pound Sterling (GBP), EURO (EUR) and US Dollar (USD).

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 2 9

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

23 FINANCIAL RISK MANAGEMENT (CONTINUED)

Foreign exchange rates applied against the New Zealand Dollar, at 30 September are as follows:

	2014	2013
AUD	0.9001	0.8776
CAD	0.8979	0.8230
FJD	1.5462	1.5240
HKD	6.3291	6.2993
GBP	0.5004	0.5129
EUR	0.6324	0.6087
USD	0.8164	0.8123

The Group’s exposure to foreign currency risk at the reporting date was as follows (all amounts are denominated in New Zealand Dollars):

2014 ($000)	AUD	CAD	FJD	GBP	EUR	USD
Cash and cash equivalents	102	-.	-.	239	-.	33
Trade and other receivables	5,257	69	38	1,590	125	315
Trade and other payables	(159)	-.	-.	(153)	-.	(4)
	5,200	69	38	1,676	125	344
2013 ($000)	AUD	CAD	FJD	GBP	EUR	USD
Cash and cash equivalents	69	-.	-.	37	-.	1
Trade and other receivables	4,062	50	46	1,102	210	185
Trade and other payables	(549)	-.	-.	(111)	-.	(6)
	3,582	50	46	1,028	210	180

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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

23 FINANCIAL RISK MANAGEMENT (CONTINUED)

Summarised sensitivity analysis

The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to foreign currency risk and interest rate risk.

GROUP 2014 ($000)		FOREIGN CURRENCY RISK1	FOREIGN CURRENCY RISK1			INTEREST	RATE RISK2
		-10%	+10%		-100bps		+100bps
	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY
Cash and cash equivalents	42	42	(34)	(34)	-.	-.	-.	-.
Trade and other receivables	822	822	(672)	(672)	-.	-.	-.	-.
Trade and other payables	(35)	(35)	29	29	-.	-.	-.	-.
Total increase/(decrease)	829	829	(677)	(677)	-.	-.	-.	-.
PARENT 2014 ($000)		FOREIGN CURRENCY RISK1				INTEREST	RATE RISK2
		-10%	+10%		-100bps		+100bps
	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY
Amount owing from subsidiary	-.	-.	-.	-.	-.	-.	-.	-.
Derivative financial instruments	-.	-.	-.	-.	-.	-.	-.	-.
Borrowings	-.	-.	-.	-.	-.	-.	-.	-.
Total increase/(decrease)	-.	-.	-.	-.	-.	-.	-.	-.

Total increase/(decrease)

GROUP 2013 ($000)		FOREIGN CURRENCY RISK1	FOREIGN CURRENCY RISK1			INTEREST	RATE RISK2
		-10%	+10%		-100bps		+100bps
	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY
Cash and cash equivalents	12	12	(10)	(10)	-.	-.	-.	-.
Trade and other receivables	628	628	(514)	(514)	-.	-.	-.	-.
Trade and other payables	(74)	(74)	61	61	-.	-.	-.	-.
Derivative financial instruments	-.	-.	-.	-.	(189)	(189)	189	189
Borrowings	-.	-.	-.	-.	286	286	(286)	(286)
Total increase/(decrease)	566	566	(463)	(463)	97	97	(97)	(97)
PARENT 2013 ($000)		FOREIGN CURRENCY RISK1				INTEREST	RATE RISK2
		-10%	+10%		-100bps		+100bps
	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY	PROFIT	EQUITY
Derivative financial instruments	-.	-.	-.	-.	(189)	(189)	189	189
Borrowings	-.	-.	-.	-.	286	286	(286)	(286)
Total increase/(decrease)	-.	-.	-.	-.	97	97	(97)	(97)

1 The foreign currency sensitivity above represents a 10% decrease and increase in spot foreign exchange rates.

2 The interest rate sensitivity above represents a 100 basis point decrease and increase in variable interest rates.

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 3 1

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

23 FINANCIAL RISK MANAGEMENT (CONTINUED)

(d) CAPITAL MANAGEMENT

The capital structure of the Group consists of equity raised by the issue of ordinary shares in the parent company.

The Group manages its capital to ensure that companies in the Group are able to continue as going concerns. The Group is not subject to any externally imposed capital requirements.

(e) FAIR VALUE MEASUREMENT

The carrying amounts of the Group’s financial assets and liabilities approximate their fair value due to their short maturity periods or fixed rate nature.

24 RELATED PARTIES

IDENTITY OF RELATED PARTIES

The Group has related party relationships with its subsidiaries. The related party transactions primarily consist of the purchase and sale of software products, provision of technical support, loan advances and

repayments, consultancy services and management charges on commercial terms. Related parties to the Group are as follows:

*Entity*	*Principal Activity*
Gentrack Group Australia Pty Limited	Australian holding company
Talgentra Pacific Group Pty Limited	Australian holding company
Gentrack Pty Limited	Australian operating company – software development, sales and support
Talgentra NZ Holdings Limited	New Zealand holding company
Gentrack Limited	New Zealand operating company – software development, sales and support

RELATED PARTY RECEIVABLES

Loans and receivables between Gentrack Group Limited, the parent, and related parties for the year ended 30 September 2014 amounted to $6,389,000 (2013: $288,000) and are presented in non-current assets in the Statement of Financial Position. It is not expected that these loans will be received in the following 12 months. These loans bear an annual interest rate of 6%.

Trade receivables from related parties are non-interest bearing and repayable on demand and are accordingly disclosed as current assets in the Statement of Financial Position.

PARENT ($000)	2014	2013
Gentrack Group Australia Pty Limited – Long term loan	6,389	-.
Gentrack Group Australia Pty Limited – Interest receivable	201	402
Gentrack Limited – Long term loan	-.	288

RELATED PARTY PAYABLES

Loans and payables between Gentrack Group Limited, the parent, and related parties for the year ended 30 September 2014 amounted to $4,597,000 (2013: $36,000) and are presented in non-current assets in the Statement of Financial Position. It is not expected that these loans will be received in the following 12 months. These loans bear an annual interest rate of 6%.

Trade payables from related parties are non-interest bearing and repayable on demand and are accordingly disclosed as current liabilities in the Statement of Financial Position.

PARENT ($000)	2014	2013
Gentrack Limited – Long term loan	(4,597)	-.
Gentrack Limited – Interest payable	(153)	(318)
Gentrack Group Australia Pty Limited – Long term loan	-.	(36)

3 2 / N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

24 RELATED PARTIES (CONTINUED)

INTEREST RECEIVED/PAID

PARENT ($000)	2014	2013
Net interest received	(201)	(402)
Net interest paid	153	318
Management fees of $815,000 (2013: $646,000) were charged by
Gentrack Limited, the New Zealand operating company, to related
parties during the year to cover management type activities.

25 OPERATING LEASE COMMITMENTS

($000)
	2014	2013	2014		2013
NON-CANCELLABLE OPERATING LEASE
COMMITMENTS DUE:
Not later than one year	1,396	1,022		-.		-.
Later than one year, not later than five years	2,871	3,440		-.		-.
Later than five years	-.	-.		-.		-.
	4,267	4,462		-.		-.

The Group leases premises, plant and equipment. Operating leases no renewal options or options to purchase in respect of plant and held over properties give the Group the right to renew the lease equipment held under operating leases. subject to redetermination of the lease rental by the lessor. There are

26 KEY MANAGEMENT PERSONNEL

Key management personnel are those persons having authority and Short-term benefits represent employee entitlements, including responsibility for planning, directing and controlling the activities of benefits in kind. the entity.

GROUP ($000)	2014	2013
Short-term benefits to key management personnel	816	662
Post employment benefits	23	15
Directors’ fees	213	130

OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL

There were no other transactions with key management personnel during the year.

27 CAPITAL COMMITMENTS

The capital expenditure commitments as at 30 September 2014 are $nil (2013: $nil).

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 3 3

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

28 CONTINGENCIES

ANZ New Zealand has provided the following guarantees on behalf of the Gentrack Group:

NZD$276,596 (AUD$245,700) to Australia and New Zealand Banking Group. This guarantee expires on 27 December 2014.

NZD$75,000 to NZX Limited. This guarantee expires on 21 May 2015.

A subsidiary is negotiating a claim for liquidated damages brought by a customer. Although liability is not admitted, if the defence against the action is unsuccessful, then fines and legal costs could amount to $300,000 of which $275,000 would be reimbursable under an insurance policy. Management believes that the claim will not be successful.

NZD$900,597 (AUD$800,000) to ANZ Trade Service Delivery. This guarantee is due to expire on 15 January 2015.

29 CASH FLOW INFORMATION

($000)
	2014	2013	2014	2013
(a) RECONCILIATION OF OPERATING CASH FLOWS WITH
REPORTING PROFIT AFTER TAX:
Profit after tax	3,383	6,636	1,109	33,066
Add/(less) non-cash items
Deferred tax	(648)	(1,191)	-.	-.
Other non-cash expenses/(income)	174	237	(432)	24,617
Depreciation and amortisation	2,251	2,207	-.	-.
	5,160	7,889	677	57,683
Add/(less) movements in other working capital items:
Decrease in trade and other receivables	359	284	163	83
Increase/(decrease) in tax payable	(1,186)	1,472	-.	-.
(Decrease)/increase in GST payable	(10)	7	-.	-.
Increase/(decrease) in deferred revenue	1,042	(310)	-.	-.
Increase in employee entitlements	207	190	-.	-.
(Decrease) in trade payables and accruals	(534)	(243)	(75)	(208)
	5,038	9,289	765	57,558
Items classified as financing activity
Net finance expense/(income)	1,254	2,287	(4,819)	(57,946)
Loss on disposal of property, plant and equipment	-.	2	-.	-.
Net cash inflow/(outflow) from operating activities	6,292	11,578	(4,054)	(388)
(b) BANK FACILITIES:
Bank facility	3,667	3,684	-.	-.
Amount utilised	-.	-.	-.	-.
Unused bank facility	3,667	3,684	-.	-.

3 4 / N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

30 EVENTS SUBSEQUENT TO BALANCE DATE

A dividend of $2,617,182 ($0.036 per share) was declared on 26 November 2014 for the year ended 30 September 2014, and will be paid on 19 December 2014.

31 COMPARISON TO PROSPECTIVE FINANCIAL INFORMATION

The Group’s Investment Statement and Prospectus dated 26 May 2014 (as amended on 4 June 2014) included prospective financial statements from 1 October 2013 to 30 September 2014. Below is the

actual year’s trading result covering the period 1 October 2013 to 30 September 2014, which has been compared to the prospective financial statements.

PROSPECTIVE CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

For the year ended 30 September 2014

($000)		ACTUAL	PROSPECTIVE
		GROUP	GROUP
	NOTES	2014	2014
Revenue	a	38,531	40,582
Expenditure	b	(25,489)	(26,479)
Profit before depreciation, amortisation, non-operating costs,
financing and tax		13,042	14,103
Depreciation and amortisation		(2,251)	(2,264)
Non-operating costs		(3,865)	(3,866)
Profit before financing and tax		6,926	7,973
Net finance cost	c	(910)	(1,200)
Profit before tax		6,016	6,773
Income tax expense		(2,633)	(3,030)
Profit attributable to the shareholders of the company		3,383	3,743
OTHER COMPREHENSIVE INCOME
Exchange differences on translation of foreign operations		(347)	(380)
Total comprehensive income for the year		3,036	3,363
REVENUE BY TYPE
Recurring	a	11,748	11,567
Non-recurring	a	3,405	3,522
Professional services	a	22,948	25,117
Government grants	a	430	376
Total revenue		38,531	40,582

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 3 5

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

31 COMPARISON TO PROSPECTIVE FINANCIAL INFORMATION (CONTINUED)

PROSPECTIVE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

For the year ended 30 September 2014

($000)		ACTUAL	PROSPECTIVE
		GROUP	GROUP
	NOTES	2014	2014
CURRENT ASSETS
Cash and cash equivalents		5,249	5,331
Trade and other receivables	d	10,231	10,962
Total current assets		15,480	16,293
NON-CURRENT ASSETS
Property, plant and equipment		565	699
Goodwill		40,277	40,277
Intangibles		20,233	20,278
Deferred tax asset	e	562	1,657
Total non-current assets		61,637	62,911
Total assets		77,117	79,204
CURRENT LIABILITIES
Trade payables and accruals		1,426	1,444
Deferred revenues		3,957	3,953
GST payable		339	396
Employee entitlements		1,324	1,539
Income tax payable		719	1,003
Borrowings		6	30
Total current liabilities		7,771	8,365
NON-CURRENT LIABILITIES
Employee entitlements		279	287
Borrowings		-.	79
Deferred tax liabilities	e	3,371	4,245
Total non-current liabilities		3,650	4,611
Total liabilities		11,421	12,976
Net assets		65,696	66,228
EQUITY
Share capital		60,396	60,601
Retained earnings		5,179	5,539
Reserves		121	88
Total shareholders’ equity		65,696	66,228

3 6 / N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

31 COMPARISON TO PROSPECTIVE FINANCIAL INFORMATION (CONTINUED)

PROSPECTIVE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the year ended 30 September 2014

($000)		ACTUAL	PROSPECTIVE
		GROUP	GROUP
	NOTES	2014	2014
TOTAL EQUITY
Balance at 1 October 2013		33,817	33,817
Transactions with owners: issue of capital (net of fees), dividends		28,843	29,048
Total comprehensive income for the year, net of tax		3,036	3,363
Balance at 30 September 2014		65,696	66,228

PROSPECTIVE CONSOLIDATED STATEMENTS OF CASH FLOWS

For the year ended 30 September 2014

($000)		ACTUAL	PROSPECTIVE
		GROUP	GROUP
	NOTES	2014	2014
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	a	39,989	41,165
Payments to suppliers and employees	b	(29,230)	(30,205)
Income tax paid		(4,467)	(4,659)
Net cash inflow from operating activites		6,292	6,301
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment		(110)	(168)
Increase in other intangibles		-.	(53)
Net cash outflow from investing activities		(110)	(221)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital		35,085	35,203
Drawdown of borrowings		6,155	4,542
Repayment of borrowings		(34,765)	(33,100)
Dividends paid		(6,155)	(6,155)
Net interest paid		(1,396)	(1,382)
Net cash outflow from financing activities		(1,076)	(892)
Net increase in cash held		5,106	5,188
Cash at beginning of the financial year		143	143
Closing cash and cash equivalents (net of overdrafts)		5,249	5,331

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S / 3 7

N O T E S T O T H E F I N A N C I A L S TAT E M E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

31 COMPARISON TO PROSPECTIVE FINANCIAL INFORMATION (CONTINUED)

EXPLANATION OF VARIANCES:

(a) Revenue from professional services was lower than forecast principally due to the issues raised in Gentrack’s market announcement of 1 August 2014. These were non-payment for services rendered in the delayed Go-Live of one project, and the reduced service revenue resulting from the delayed commencement of another project. This reduced revenue is also reflected in receipts from customers being lower than forecast.
(b) Expenditure was down on forecast. This decrease was due to personnel, travel, and sales and marketing costs being lower than anticipated, mostly as a result of lower revenues noted in (a) above; somewhat offset by an increase in the provision for doubtful debts. Payments to suppliers were lower than anticipated as a result of the reduced expenditure.
(c) Finance costs were lower than forecast due to a gain on foreign exchange.
(d) Trade and other receivables are lower than forecast due to an increase in the provision for doubtful debt and lower than expected trading results.
(e) Both deferred tax assets and deferred tax liabilities are lower due to a deferred tax asset of a subsidiary being offset with a deferred tax liability of the Group.

3 8 / N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

D I S C L O S U R E S _

USE OF CASH AND CASH EQUIVALENTS

In accordance with ASX Listing Rule 4.10.19, the Board has determined that the Group has used the cash and cash equivalents that it had at

1 October 2013 in a way consistent with its business objectives for the year ended 30 September 2014.

ENTRIES RECORDED IN THE INTERESTS REGISTER

The Company maintains an Interest Register in accordance with the Companies Act 1993 and the Securities Markets Act 1988. The following are particulars of entries made in the Interests Register for the period 1 October 2013 to 30 September 2014.

DIRECTORS’ INTERESTS

Directors disclosed interest, or cessation of interest, in the following entities pursuant to section 140 of the Companies Act 1993 during the year ended 30 September 2014.

DIRECTOR/ENTITY	RELATIONSHIP
John Clifford
JCVC Pty Limited	Director
Uplands Group Pty Limited in its capacity as trustee of the Uplands Group Trust	Director
James Docking
Jametti Limited	Director
Roy Grant (retired 23 April 2014)
Fiducia Trust	Trustee
Leigh Warren
Warren Family Business Pty Limited in its capacity as trustee of the Warren Family Business Superannuation Fund	Director

SHARE DEALINGS OF DIRECTORS

Directors disclosed, pursuant to section 148 of the Companies Act 1993, the following acquisitions and disposals of relevant interest in Gentrack Group Limited shares during the year ended 30 September 2014.

SHARES	DATE OF	CONSIDERATION	NUMBER OF SHARES
	ACQUISITION/DISPOSAL	PER SHARE	ACQUIRED/(DISPOSED)
John Clifford	24 June 2014	$2.40	(5,025,192)
Andy Coupe	24 June 2014	$2.40	20,833
James Docking	24 June 2014	$2.40	(4,905,465)
Roy Grant1	24 June 2014	$2.40	(4,680,000)
David Ingram2	24 June 2014	$2.40	50,000
Graham Shaw	24 June 2014	$2.40	41,666
Leigh Warren	24 June 2014	$2.40	(527,403)

1 Roy Grant retired on 23 April 2014.

2 David Ingram is a Director of the following subsidiary companies: Gentrack Pty Limited, Gentrack Group Australia Pty Limited, Gentrack UK Limited.

SHAREHOLDINGS OF DIRECTORS AT 30 SEPTEMBER 2014

	2014	2013
	NUMBER OF SHARES	NUMBER OF SHARES
John Clifford	9,151,374	4,725,522
AndyCoupe	20,833	-.
James Docking	7,358,196	4,087,887
David Ingram1	50,000	-.
Graham Shaw	41,666	-.
Leigh Warren	629,184	385,529

1 David Ingram is a Director of the following subsidiary companies: Gentrack Pty Limited, Gentrack Group Australia Pty Limited, Gentrack UK Limited.

D I S C L O S U R E S / 3 9

D I S C L O S U R E S _

REMUNERATION OF DIRECTORS

Details of the total remuneration of, and the value of other benefits received by, each Director of Gentrack Group Limited during the financial year ended 30 September 2014 are as follows:

($000)	2014	2014	2013	2013
	FEES	REMUNERATION	FEES	REMUNERATION
John Clifford	98,691	-.	90,000	-.
Andy Coupe1	30,000	-.	-.	-.
James Docking2	-.	428,139	-.	354,183
Roy Grant3	-.	99,891	-.	256,317
Graham Shaw4	32,500	-.	-.	-.
Leigh Warren	51,926	-.	40,000	-.
	213,117	528,030	130,000	610,500

1 Andy Coupe was appointed as Director on 23 April 2014.

2 James Docking is an Executive Director and receives remuneration from Gentrack in the form of a salary and short-term incentives.

3 Roy Grant was an Executive Director and received remuneration from Gentrack in the form of a salary and short-term benefits. Roy Grant retired on 23 April 2014.

4 Graham Shaw was appointed as Director on 26 March 2014.

EMPLOYEE REMUNERATION

The number of current employees of the parent and subsidiaries receiving remuneration and benefits above $100,000 in the year ended 30 September 2014 are set out in the table below

CURRENT EMPLOYEES	PARENT	SUBSIDIARIES
$100,001 – $110,000	-	14
$110,001 – $120,000	-	6
$120,001 – $130,000	-	8
$130,001 – $140,000	-	4
$140,001 – $150,000	-	4
$150,001 – $160,000	-	3
$160,001 – $170,000	-	3
$170,001 – $180,000	-	2
$180,001 – $190,000	-	1
$190,001 – $200,000	-	2
$200,001 – $210,000	-	1
$230,001 – $240,000	-	3
$240,001 – $250,000	-	1
$260,001 – $270,000	-	3
$270,001 – $280,000	-	1
$380,001 – $390,000	-	1
$420,001 – $430,000	-	1
Total	-	58

The analysis above includes the remuneration and benefits paid to employees, in the relevant bandings, where their annual remuneration and benefits exceed $100,000.

4 0 / D I S C L O S U R E S

D I S C L O S U R E S _

ANALYSIS OF SHAREHOLDING AT 31 OCTOBER 2014

SIZE OF HOLDING	NUMBER OF	FULLY PAID ORDINARY SHARES	% OF ISSUED
	HOLDERS	NUMBER OF SHARES1	CAPITAL
1 – 1,000	422	258,269	0.4
1,001 – 5,000	624	1,664,267	2.3
5,001 – 10,000	117	951,045	1.3
10,0001 – 100,000	108	2,713,485	3.7
100,001 and over	46	67,112,444	92.3
TOTAL	1,317	72,699,510	100.0

1 The total number of shares on issue as at 30 September 2014 and at 31 October 2014 was 72,699,510.

TWENTY LARGEST SHAREHOLDERS AT 31 OCTOBER 2014

The twenty largest shareholders of fully paid ordinary shares as at 31 October 2014 were:

NAME	NUMBER OF ORDINARY	% OF ISSUED
	SHARES HELD	SHARE CAPITAL
Jametti Limited as trustees of the Fraxinus Aurea Trust	7,358,196	10.1
Uplands GroupPtyLimited as trustees of Uplands GroupTrust	7,231,374	9.9
Nigel Peter Farley and Richard John Burrell as trustees of the
Nigel FarleyFamilyTrust	4,712,661	6.5
UBS Nominees PtyLimited	4,398,545	6.1
National Nominees Limited	3,213,179	4.4
Terence de Montalt Maude and Wendy Fay Wood as trustees
of the T&W Investment Trust	3,193,395	4.4
Roy Desmond Grant, Nina Catherine Maria Grant and
Adrienne Alexandra Wigmore as trustees of the Fiducia Trust	3,120,000	4.3
HSBC CustodyNominees	2,848,421	3.9
RBC Investor Services	2,769,132	3.8
Tea Custodians Limited1	2,403,300	3.3
BNP Paribas Nominees PtyLimited	2,296,059	3.2
Custodial Services Limited	2,059,743	2.8
JCVC PtyLimited as trustees of JCVC Superannuation Fund	1,920,000	2.6
New Zealand Superannuation1	1,836,848	2.5
Cogent Nominees Limited1	1,631,093	2.2
JP Morgan Chase Bank1	1,395,257	1.9
CiticorpNominees PtyLimited	1,271,878	1.7
HSBC Nominees (New Zealand)1	1,251,731	1.7
Citibank Nominees (NZ) Limited1	1,250,337	1.7
Accident Compensation1	1,244,347	1.7

1 These shareholdings are held through New Zealand Central Securities Depository Limited (NZCSD) which allows electronic trading of securities to members.

The percentage shareholding of the 20 largest shareholders of Gentrack Group Limited fully paid ordinary shares was 79%.

D I S C L O S U R E S / 4 1

D I S C L O S U R E S _

SUBSTANTIAL SHAREHOLDERS AS AT 31 OCTOBER 2014

According to notices given under the Securities Markets Act 1988, the following persons were Substantial Shareholders in Gentrack Group

Limited at 31 October 2014 in respect of the number of voting securities set opposite their names.

NAME	NUMBER OF ORDINARY	% OF ISSUED
	SHARES HELD	SHARE CAPITAL
UBS AG and its related bodies corporate	4,678,248	6.4
Devon Funds Management Limited	4,500,000	6.2
Watermark Funds Management PtyLimited	3,820,000	5.3
Harbour Asset Management Limited	3,733,200	5.1
Uplands Group Pty Limited as trustees of Uplands Group Trust, JCVC Pty Limited as
trustees of JCVC Superannuation Fund, John Clifford and Valerie Clifford	9,151,374	12.6
Jametti Limited as trustees of the Fraxinus Aurea Trust	7,358,196	10.1
Nigel Peter Farleyand Richard John Burell as trustees of the Nigel FarleyFamilyTrust	4,712,661	6.5

Eley Griffiths Group Pty Limited ceased to be a substantial shareholder and submitted a revised notice to ASX on 20 August 2014.

The total number of issued voting shares of Gentrack Group Limited at 31 October 2014 was 72,699,510. Where voting at a meeting of the shareholders is by voice or show of hands, every shareholder present

in person or by representative has one vote, and on a poll, every shareholder present in person, or by representative has one vote for each fully paid ordinary share in the Company.

At 31 October 2014, these were 19 shareholders holding marketable parcels of less than $500.

RESTRICTED SECURITIES

28,214,810 are restricted securities or securities subject to voluntary escrow under ASX Listing Rule 4.10.14.

SUBSIDIARY COMPANY DIRECTORS

The following people held office as Directors of subsidiary companies at 30 September 2014:

Gentrack Limited	John Clifford, James Docking
Talgentra New Zealand Holdings Limited	John Clifford, James Docking
Gentrack Pty Limited	John Clifford, James Docking, David Ingram1
Gentrack Group Australia Pty Limited	John Clifford, James Docking, David Ingram1
Talgentra Pacific Group Pty Limited	John Clifford, James Docking, Leigh Warren
Gentrack UK Limited	James Docking, David Ingram2

Directors of the company’s subsidiaries do not receive any 1 David Ingram was appointed Director on 23 April 2014. Roy Grant remuneration or other benefits in respect of their appointments. retired on 23 April 2014.

2 David Ingram was appointed Director on 5 May 2014. Roy Grant retired on 5 May 2014.

DONATIONS

The Company made donations of $11,428 during the year ended 30 September 2014.

CREDIT RATING

The Company has no credit rating.

WAIVERS

Gentrack Group Limited had no NZX waivers granted or published by NZX within or relied upon in the 12 months ending 30 September 2014. Gentrack Group Limited has been granted waivers from the ASX which are standard for a New Zealand company listed on the ASX

including confirmation that ASX will accept financial statements denominated in New Zealand dollars and prepared and audited in accordance with New Zealand Generally Accepted Accounting Principles and Auditing Standards.

ANNUAL MEETING

Gentrack Group Limited’s Annual Meeting of Shareholders will be held in Auckland on 26 February 2015 at 4:00pm. A notice of Annual

Meeting and Proxy Form will be circulated to shareholders in January 2015.

4 2 / D I S C L O S U R E S

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T H E S O F T W A R E O F I N F R A S T R U C T U R E _

2014 R ESULTS

F OR T HE Y EAR TO 30 S EPT 2014

27 November 2014

www.gentrack.com

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IMPORTANT NOTICE

This presentation supplements our full year results announcement dated 27 November 2014. It should be read subject to and in conjunction with the additional information in that release, other material that we have released to NZX and ASX, and our Investment Statement and Prospectus dated 26 May 2014. That material is available via the Investor Centre on our website, www.gentrack.com. All references to currency are to New Zealand dollars unless otherwise stated. This presentation contains forward-looking statements and projections. These reflect our current expectations based on what we think are reasonable assumptions but for any number of reasons these assumptions may prove incorrect. We give no warranty or representation as to our future financial performance or any future matter. Except as required by law or NZX or ASX listing rules, we are not obliged to update this presentation after its release, even if things change materially. Some of the financial information in this presentation has not been prepared in accordance with generally accepted accounting practice (“GAAP”). In particular, we show Pro Forma results and EBITDA. If needed, investors should get advice on how our non-GAAP information relates to our GAAP results. This presentation is for information purposes only. It is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment advice or a securities recommendation, and does not take into account any person’s individual circumstances or objectives. Every investor should make an independent assessment of Gentrack on the basis of expert financial advice. Distribution of this presentation (including electronically) may be restricted by law. You should observe all such restrictions which may apply in your jurisdiction. To the maximum extent permitted by law, we will not be liable, whether in tort (including negligence) or otherwise, to you or any other person in relation to this presentation, including any error in it.

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Specialist software for Utilities & Airports_

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Airport Information Management

Meter-to-Cash Billing and CRM

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Sites: 150 utilities and airports • 17 Countries Offices: Auckland • Melbourne • Brisbane • London

Highlights_

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T H E S O F T W A R E O F T H E SI N OF RFATSWT RAURCET OU RFE _ I N F R A S T R U C T U R E _

Successful implementation of Gentrack’s first Network Company solution in Australia demonstrates new market potential.
Commenced largest contract ever for the upgrade of a billing system in Australia.
Gentrack’s UK business revenue grew by 40% and is profitable. The London office was expanded for 2015 growth (currently 21 staff).
Airport 20/20 now used by most major airports in Australasia following new implementations at Auckland and Sydney airports.
4 new customers won, 12 implementation projects underway, 3 new systems taken live (1 in the Cloud).

www.gentrack.com

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Results_

NZ$000	FY14	FY14 PFI1	∆ $	∆ %
Revenue	38,531	40,582	-2,051	-5.1%
Underlying EBITDA3 (Pro-forma)	12,910	13,971	-1,061	-7.6%
Underlying EBITDA3 (Statutory)	13,042	14,103	-1,061	-7.5%
Underlying EBITDA3 (Statutory) margin	33.8%	34.8%	-1.0%	-
NPAT (Pro-forma)	8,140	8,509	-369	-4.3%
NPAT (Statutory)	3,383	3,743	-360	-9.6%
Net Cash Balance	5,249	5,331	-82	-1.5%
Final Dividend cps2	3.60	3.60	0	0%

1 PFI – Forecast provided in Gentrack prospectus dated 26 May 2014

2 DIVIDEND - A final dividend of NZ 3.60 cps ($2,617k) will be paid in line with the prospectus. The dividend will be 40% Franked (AU) and 100% Imputed (NZ)

3 Underlying EBITDA is a non-GAAP profit measure that in the director’s opinion, best reflects the financial performance of the business. It is defined and reconciled to GAAP profit on page 18 of this presentation.

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Contract Issues Update_

Contract Delay	Project Dispute
Issue: Anticipated signing of a large contract was delayed by two months reducing the service revenue recognised in FY14.	Issue: Customer disputed payment for additional services delivered against an extended project Go-Live.
Update: Contract was signed on 1st September 2014. The upgrade project is now underway with this Australian utility with an anticipated Go-Live in late 2015.	Update: A successful project Go-Live was achieved. Negotiations with the customer are on-going to resolve the dispute. Additional orders have been received for FY15 and there is a major new project opportunity with this customer.

As referred to in Gentrack’s stock exchange notices of 1 August and 6 August 2014.

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Track Record_

NZ$m

Revenue

NZ$m

EBITDA[1] (pro-forma)

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50.0
45.0
44.7
40.0
40.1
35.0 38.5
34.3
30.0
32.2
25.0
25.9
20.0 23.6
15.0
10.0
5yr CAGR = 10.3%
5.0
0.0
2009 2010 2011 2012 2013 2014 2015 PFI
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18.0
16.0
15.5
14.0
14.0
12.0 12.9
11.8
10.0 11.4
8.0
8.6
7.8
6.0
4.0
2.0 5yr CAGR = 10.7%
0.0
2009 2010 2011 2012 2013 2014 2015 PFI
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The 2014 result was impacted by a high NZ$ and the two contract issues disclosed.

A 2013 constant currency would have improved the 2014 result:

The 2015 forecast remains as provided in the prospectus.

Revenue +NZ$2.3m = +2% growth on 2013 EBITDA +NZ$1.6m = +4% growth on 2013

= 2014 results at 2013 constant currency ( FY13 AUD 0.8243, FY14 AUD 0.9153, Δ = 11.0%)

1 EBITDA is underlying EBITDA (pro-forma) as defined and reconciled on page 18 of this presentation.

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Divisional Analysis_

Revenue x Sector

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Energy Water Airports Other
1%
14%
16%
69%
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Utilities declined in 2014 primarily due to the two contract issues disclosed.

Utilities

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EBITDA NZ$m
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Revenue NZ$m

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36.0 13.5
40.0 15.0
33.0 11.8
30.0
10.0
20.0
5.0
10.0
0.0 0.0
2013 2014 2013 2014
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Airports
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Revenue NZ$m

EBITDA NZ$m

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----- Start of picture text -----

6.0 5.5 1.5
1.1
4.1
4.0 1.0
0.7
2.0 0.5
0.0 0.0
2013 2014 2013 2014
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Airports had a strong performance in 2014 on the back of new implementations at five airports including Auckland, Sydney and Bristol.

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Geographic Analysis_

Revenue NZ$m

Revenue x Region

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Australia New Zealand UK ROW
5%
13%
55%
27%
.
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25.0
20.0
15.0
2013 2014
10.0
5.0
0.0
New Zealand Australia UK Rest of World
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New Zealand revenues were reduced due to no major upgrades from Gentrack’s mature customer base.
Australian revenue was flat due to the two contract issues disclosed.
UK revenues improved by 40% due to both existing customer sales and new Utility and Airport wins.
Rest of World revenues were flat and remain a focus for future growth in the Utilities business.

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0.4
Product Analysis_ 0.4
3.8
3.4
Revenue x Product 8.9
8.9
Licences Project Services Support Services
Recurring Fees Other
1% 9% 16.0 14.0
31%
23%
11.0 11.8
2013 2014
Recurring Fees Support Services Project Services
Licence Fees Other
36%
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Product Analysis_

Recurring Fees: 7.2% growth exceeded the prospectus forecast by ~$200k.
Service Revenue: Project services revenue was reduced due to the two contract issues disclosed.
Licence Fees: Licence Fee income achieved 97% of the prospectus forecast.

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Operating Expenses_

Staff x Office

Auckland Melbourne Brisbane London

NZ$m	FY14	FY14 PFI	FY13
Average Staff Number (#)	184	191	175
Personnel	19.9	20.8	20.5
Administration & Occupancy1	3.6	3.5	3.2
Marketing	0.6	0.7	0.7
Other	1.5	1.6	1.7
TOTAL COSTS1	25.6	26.6	26.1
R&D (included)	2.2	2.5	2.5

Operational costs were tightly managed to deliver the best outcome against the reduced FY14 revenue whilst still building the platform for FY15 growth.

20 New Graduate Software Engineers began their careers with Gentrack in 2014.

1Includes a pro-forma adjustment of $132k (2013: $245k) for ongoing listing costs as per the Prospectus and as detailed on page 18.

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11%
3%
23%
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63%
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Staff x Role

Admin Sales Technical

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9%
6%
85%
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Product Development_

NZ$2.2m was fully expensed against formal R&D projects representing 14% of Gentrack’s Software Revenue

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Executive Dashboards
CRM: Product Catalogue
Market Localisation:
Network Billing (Australia)
Water Billing & CRM Product (UK)
Integrated Self Service Web Portal

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Architecture upgrade to reduce delivery costs
Skytower – aerial view of airport resources
Collaborative decision making
Airport Operational Dashboards

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T H E S O F T W A R E O F I N F R A S T R U C T U R E _

2015 Guidance_

Prospectus Forecast FY15 Revenue NZ$44.7m EBITDA NZ$15.5m NPAT NZ$9.3m

Gentrack expects to deliver solid growth in the year to 30 September 2015 in line with the prospectus forecast.
This requires securing several new project deals in the first half of the year.
A healthy pipeline of opportunities is currently being pursued in Australia and the UK.
We anticipate a stronger second half to FY15
We note our normal business risk that the timing of large projects and contracts can impact our results.
We will be in a position to update investors on progress in May 2015 along with our half year results.

www.gentrack.com

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T H E S O F T W A R E O F I N F R A S T R U C T U R E _

Appendix _

www.gentrack.com

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Income Statement_

	FY14 Actual Statutory NZ$’000	FY14 Prospectus Statutory NZ$’000	FY13 Actual Statutory NZ$’000
Revenue	38,531	40,582	40,126
Expenditure	(25,489)	(26,479)	(25,878)
EBITDA(underlying)	13,042	14,103	14,248
% of revenue	34%	35%	36%
Depreciation and amortisation	(2,251)	(2,264)	(2,207)
Non-operating costs	(3,865)	(3,866)	(170)
Net finance cost	(910)	(1,200)	(2,550)
Income tax expense	(2,633)	(3,030)	(2,685)
Net Profitafter Tax	3,383	3,743	6,636

The financial tables provide high level summary information only and contain non-GAAP measures such as EBITDA. For the complete financial information of Gentrack refer to the published 2014 Financial Statements.

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Balance Sheet_

	FY14 Actual Statutory $’000	FY14 Prospectus Statutory $’000	FY13 Actual Statutory $’000
Cash	5,249	5,331	143
Receivables	10,231	10,962	11,196
Property, Plant& Equipment	565	699	700
Intangibles	60,510	60,555	62,552
Total assets	76,555	77,547	74,591
Payables & accruals	2,484	2,843	4,357
Deferred revenues	3,957	3,953	2,944
Employee entitlements	1,603	1,826	1,406
Borrowings	6	109	28,615
Net deferred tax liability1	2,809	2,588	3,452
Total liabilities	10,859	11,319	40,774
Net assets	65,696	66,228	33,817
Ordinary share capital	60,396	60,601	25,398
Retained earnings	5,179	5,539	7,951
Reserves	121	88	468
Equity	65,696	66,228	33,817
1Shown as net of deferred tax asset and deferred tax liability

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Cash Flow Statement_

	FY14 Actual Statutory $’000	FY14 Prospectus Statutory $’000	FY13 Actual Statutory $’000
Cash from Operating Activities
Receipts from customers	39,989	41,165	40,101
Payments to suppliers &employees	(25,365)	(26,339)	(25,949)
Cashgenerated from operations	14,624	14,826	14,152
Non-operating costs	(3,865)	(3,866)	(170)
Income taxpaid	(4,467)	(4,659)	(2,404)
Net cash flows from operating activities	6,292	6,301	11,578

Cash Flows from Investing Activities
Purchase ofproperty, plant & equipment	(110)	(168)	(460)
Increase in other intangibles	-	(53)
Net cash flows from investing activities	(110)	(221)	(460)

Cash Flows from Financing Activities
Proceeds from issue of share capital	36,000	36,000
Costs in relation to issue of share capital	(915)	(797)
Net repayment of debt	(28,610)	(28,558)	(9,080)
Dividendspaid	(6,155)	(6,155)
Net interestpaid	(1,396)	(1,382)	(2,287)
Net cash flows from financing activities	(1,076)	(892)	(11,367)

Net increase/(decrease) incash	5,106	5,188	(249)

GAAP to non-GAAP Profit

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Reconciliation_

	FY14 Actual $’000	FY14 Prospective $’000	FY13 Actual $’000
EBITDA AND UNDERLYING EBITDA
Reported net profit for the period (GAAP)	3,383	3,743	6,636
Add back: net finance expense1	910	1,200	2,550
Add back: income tax expense1	2,633	3,030	2,685
Add back: depreciation & amortisation1	2,251	2,264	2,207
EBITDA	9,177	10,237	14,078
Adjusted for:
Non-operating costs1	3,865	3,866	170
Underlying EBITDA (Statutory)	13,042	14,103	14,248
Ongoing listing costs adjustment2	(132)	(132)	(245)
Underlying EBITDA(Pro-forma)	12,910	13,971	14,003

1 Extracted from audited financial statements.

2 Extracted from Prospectus dated 26 May 2014.

NON-GAAP PROFIT REPORTING MEASURES

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T H E S O F T W A R E O F T H E SI N OF RFATSWT RAURCET OU RFE _ I N F R A S T R U C T U R E _

Gentrack Investment Strengths_

Mission critical software for world class utilities & airports
Capital light business model delivers reliable profits
Strong industry fundamentals are driving demand
Attractive growth opportunities and a strategic position with high barriers to entry
Stable revenue base with good recurring fees
Highly experienced management team and board with strong industry credentials

www.gentrack.com

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T H E S O F T W A R E O F I N F R A S T R U C T U R E _

AI assistant

GENTRACK GROUP LIMITED — Annual Report 2014

65024_rns_2014-11-26_5f8e8691-bb27-4b04-9173-e5eb6547a773.pdf

Appendix 4E

Gentrack Group Limited – Results for announcement to the market

Dividends during the year

Commentary on results

Financial Information

Media Release

Gentrack announces FY14 results and reaffirms FY15 guidance

*****

Invitation to Results Briefing

ENDS

Contact:

About Gentrack

Appendix

NON-GAAP PROFIT REPORTING MEASURES

Definitions

GAAP to non-GAAP profit reconciliation

GENTRACK GROUP FINANCIAL STATEMENTS 2014_

TA B L E O F C O N T E N T S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

REGISTERED OFFICE

AUDITOR

LEGAL ADVISERS

POSTAL ADDRESS

BANKERS

NEW ZEALAND INCORPORATION NUMBER

SHARE REGISTRAR

AUSTRALIAN REGISTERED BODY NUMBER (ARBN)

DIRECTORS

COMPANY SECRETARY

AUSTRALIA

Independent auditor’s report

To the shareholders of Gentrack Group Limited

Report on the company and group fi nancial statements

Directors’ responsibility for the company and group fi nancial statements

Auditor’s responsibility

Opinion

Report on other legal and regulatory requirements

FOR THE YEAR ENDED 30 SEPTEMBER 2014

Chief Executive Officer

S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

S TAT E M E N T O F F I N A N C I A L P O S I T I O N _

AS AT 30 SEPTEMBER 2014

S TAT E M E N T O F C H A N G E S I N E Q U I T Y _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

S TAT E M E N T O F C A S H F L O W S _

FOR THE YEAR ENDED 30 SEPTEMBER 2014

FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) CHANGES IN ACCOUNTING POLICY

(b) BASIS OF PREPARATION

Presentation currency

Use of estimate and judgements

(i) Impairment of goodwill and other assets

(ii) Long service leave

(iii) Revenue recognition

(iv) Doubtful debts

(c) BASIS OF CONSOLIDATION

Business combinations

FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

(iv) Project services revenue

(v) Deferred revenues

Subsidiaries

Transactions eliminated on consolidation

(d) REVENUE

(i) Software Licence Fee Revenue

(ii) Implementation and consulting services revenue for licensed software

(iii) Post sales customer support revenue for licensed software

(vi) Accrued income

(vii) Government grants

(e) NET FINANCE COST

(f) INCOME TAX

FOR THE YEAR ENDED 30 SEPTEMBER 2014

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued...

(i) RESEARCH AND DEVELOPMENT COSTS

(j) PROPERTY, PLANT AND EQUIPMENT

GENTRACK GROUP LIMITED Annual Report 2014