Utility software maker Gentrack Group's chief executive is standing down days before the company's annual general meeting and after forecasting a significant decrease in revenue.
John Clifford will assume the role of executive chairman until a new chief executive is appointed to replace Ian Black.
"The Board thanks Ian for his contribution to Gentrack and wishes him well in his future endeavours," a stock exchange announcement said today.
In January, NZX-listed Gentrack said it was experiencing difficult conditions in its utility software markets.
In the UK and Australia regulatory price caps on electricity, combined with competitive market conditions led to reductions and deferrals of IT investment.
"This has impacted Gentrack’s sales pipeline to a greater degree than previously expected," the company told investors.
The company is also in transition from an upfront license model to a recurring SaaS model, with initial contract revenues declining and being replaced by more predictable recurring payments.
Gentrack said it now expected its full year 2020 EBITDA to be between $8 million and $12 million.
In 2019 it recorded EBITDA of $24.8 million. That resulted in a loss for the year, however, after other expenses and the company booked a $14.6 million impairment.
Gentrack today said it was taking action to reduce its cost base by around $8 million a year of which around $4 million would benefit the current year.
"The Board has initiated a search to identify Gentrack's next CEO, and has engaged Odgers Berndtson, a leading global executive search firm, to facilitate a comprehensive process where the Board will evaluate both internal and external candidates," the company told shareholders.