Gentrack Group (ASX:GTK) has announced that it now expects EBITDA for the 2020 financial year to be ahead of the top end of analysts’ forecasts of around $11 million.
Profitability in the second half was driven by reduced costs partly as a result of employee cuts and Covid-19 related cost savings.
With the current uncertainty in the economic environment, Gentrack is unwilling to provide guidance at this stage for 2021 financial year.
However, it does note that due to upward pressure on costs and competitive intensity it is expected that the 2021 financial year EBITDA run-rate will be well below the second half 2020 financial year run rate, potentially reducing FY21 profitability closer to break-even.
Shares in Gentrack Group (ASX:GTK) are trading 4.2 per cent lower at $1.36.