EROAD Limited (NZX:ERD) today advises that it now expects net profit before tax for the financial year ended 31 March 2016 to be a loss in the $1.3m to $1.6m range. Earlier guidance released to the market on 28 September 2015 indicated a profit of $0.5m.
The revised forecast net profit before tax is subject to the audit for the year, which is nearing completion.
EROAD Limited CEO, Steven Newman, said the New Zealand business had performed strongly and group revenue is in line with guidance. EROAD has invested heavily in research and development, more of which has been expensed than was forecast, which has impacted on the company’s net profit before tax for the year. In addition, net profit before tax for the year has been negatively impacted by unrealised foreign exchange movements since half year and some other unforecasted one-off costs.
EROAD will release its full year preliminary results announcement on 26 May 2016 as previously advised.