EROAD Limited has enjoyed record sales growth in both its foundation New Zealand market and its growing North American market.
Chairman of the board Michael Bushby said the investment made in strategy and business planning for the US business had begun to show returns with the US business selling 3,634 units in the six months to September 2017 compared with 801 units for the preceding six months.
EROAD’s New Zealand business enjoyed two record sales quarters during the six months to September 2017, and finished the period with a strong pipeline of demand for the second half of FY18.
Chief executive Steven Newman said health and safety services, such as driver behaviour, are now as strong a driver of sales as electronic Road User Charges (eRUC) services, which continue to grow well.
“Road transport accounts for around 15% of fuel used in New Zealand, and our customers are achieving, on average, fuel savings of around six percent, representing a significant cost saving and carbon saving to the economy,” Newman said.
In New Zealand about half of all RUC is now paid and collected electronically, with EROAD collecting 80% of this. This 50% market conversion, since EROAD launched the world’s first GPS-based road user charging system in New Zealand in 2009, represents a rapid eCommerce adoption by the road transport sector.
As the ELD (electronic logging device) deadline nears in the US and EROAD benefits from the preceding investment in sales, first half growth in North American sales were at their highest since EROAD entered the market in 2014. A total of 3,634 units were added in the six months, more than double the total number added in the last full financial year to March 2017 (1,601).
EROAD will continue to focus on growing its New Zealand business to meet the needs of an ever more diverse group of customers, as well as growing its North American business to take advantage of the ELD opportunity.
EROAD will continue to invest in improved back office and customer support systems to maintain growth and to work with customers to bring new analytics and improved services to market.