Geo Limited revises guidance, plans sale process

Geo Limited has revised its guidance and provided an update on its strategic review.

The company expects its Annualised Recurring Revenue (ARR) to be in the range of NZ$4.0m - $4.2m by the end of December 2023, representing a growth of 20-25% compared to June 2023.

Geo is implementing cost reductions and aims to achieve a sustainable positive EBITDA run rate by December 2023.

The company plans to assess buyer interest in acquiring the company through a formal process.

Geo also notes the need for additional funding to cover ongoing cash burn and potential costs associated with the sale process.

The company acknowledges that achieving breakeven will require cost reductions, which may impact short-term growth.

There is no guarantee that a transaction can be completed on satisfactory terms.

The company has remedied a technical breach of a facility covenant and is investigating a small funding facility to strengthen its liquidity buffer.

The company's risk profile includes potential challenges in sustaining growth due to lower future price increases and reduced customer acquisition activity.