Technology company AD1 Holdings (ASX: AD1) has signed of a three-year master services agreement with prominent energy retailer Powerclub, for the provision of its CORE customer interface platform and related managed services.
The agreement follows on from a similar managed services agreement announced last month, signed with 3P Energy to provide its full suite of Software-as-a-Service (SaaS) solutions and related managed services “to enable customer acquisition, fully compliant billing and operations, and customer analytics platform”.
As a company, Powerclub specialises in providing competitive energy prices in Australia and claims it can slash household and small business energy bills by giving access to wholesale electricity, which is often around $0.03-$0.01 per kWh.
First founded by Stuart McPherson, Powerclub has developed a means of tracking the fluctuation of wholesale electricity prices and notifying subscribers when prices change.
The app recommends methods of cutting users’ usage including alerts to power down their devices when power is not needed.
Customer billing and price comparison technology
The agreement was signed between Powerclub and AD1 Holdings’ wholly-owned subsidiary Utility Software Services (USS), which offers its customers an SaaS platform for billing, sales and price comparisons through a combination of customer self-service portals, utility information technology systems and business process outsourcing (BPO) services – combined to alleviate the need for customers to manage their own billing queries.
“We are excited to welcome Powerclub as a new customer. We believe Powerclub has outstanding commercial prospects based on its unique capabilities to offer truly competitive, disruptive, and compelling energy solutions,” AD1 Holdings chief executive officer Prashant Chandra said.
“An energy provider for the digital world, Powerclub’s innovative energy solutions are underpinned by technology and it is very pleasing that they have selected USS as their technology partner on this journey.
“The successful appointment of USS under this contract is further validation of our value proposition within the energy retail market,” Mr Chandra added.
According to AD1 Holdings, the newly signed contract will commence in the current quarter with USS set to implement Powerclub’s solution into its online platform as a first step.
Revenue is expected to rise “materially” over the next three years, the company said.
The deal between with Powerclub could potentially add revenue for AD1 over the coming years.
AD1 recently published its end of financial year results showing operating revenue rising to $3.4 million, representing an increase of 74% compared to the previous year.
Operating expenses fell 15% while net losses declined $2.2 million (or 50%) in the same period. The figures came on the back of a cost rationalisation program in December 2019, designed to better align its outgoings with current and expected revenue.
According to Mr Chandra, AD1 Holdings is on course to meet its objective of “achieving organic breakeven” in the second half of the 2020 financial year and enter the new year on a cashflow positive run rate.