Eroad [NZX: ERD] expects New Zealand sales will continue to rise in the current financial year, though traction in North America will be slower as the logistics and fleet management company introduces a new sales model for that market.
The Auckland-based company has cornered 34% of New Zealand's heavy vehicle road user charging market, has 30,000 units installed in a range of vehicles across the country, and expects growth of more than 30% in total contracted units in the year ending March 31, 2017, chief executive Steven Newman told shareholders at yesterday's annual meeting.
However, Eroad's success at home hasn't translated to North America, with the New Zealand sales practices not travelling well and new regulations for US-wide electronic logging devices (ELD) delaying buying decisions. Newman said the company has aligned itself with the California Trucking Association and American Trucking Associations as the foundation for its sales push in the world's biggest economy.
"The marketing opportunities available to Eroad through ATA are considerable and we have already begun to take advantage of the multiple avenues for delivering thought leadership," Mr Newman said. "While North American sales will continue to be slowed until we release our ELD, I am confident that the work we are doing to prepare to sell our ELD across North America will place us in good stead to deliver strong sales in the FY18 year."
Shareholders voted to return Candace Kisner and Sean Keane and elect Gregg Dal Ponte to the board, and agreed to lift the pool of directors' fees by $50,000 to $350,000 to cover the cost of a larger board.
The shares last traded at $2.50 and have dropped 12% this year.
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