Rectifier Technologies (ASX: RFT) has added further momentum to its stark improvement in company metrics after the rectifier maker received product purchase orders from Tritium Pty Ltd totalling US$5 million (A$6.6 million) for the supply of 35kW modular power supply units for DC electric vehicle charging.
Rectifiers are electrical devices that convert alternating current (AC), which periodically reverses direction, to direct current (DC), which flows in only one direction. The process is known as rectification since it said to “straighten” the direction of currents.
The company added further cheer for its shareholders by announcing that the newly-secured orders are of a binding nature, scheduled to be delivered later this year. Not only that but Rectifier said that “further orders” are expected to be received before the year is out.
The company has just turned the corner after recording a $256,070 profit in the last 6 months of 2017 compared to a loss of $44,370 in the first 6 months.
Furthermore, revenue from ordinary activities increased by around $917,000 to almost $4 million. At the EBITDA level, Rectifier has taken its performance from a loss of A$123,538 at the beginning of 2017 to a profit of A$458,890 when it reported its latest figures in December 2017.
Its improved performance reflects significant sales growth within the electric vehicle charging market with other market segments, namely, electronic components, power generation and distribution also generating “steady revenue” according to Rectifier.
In October last year, Rectifier completed its highly anticipated migration process to its new factory, which the company says is now fully operational.
As part of the company’s restructuring, Rectifier obtained a secured A$1.6 million loan in February 2017 from Public Bank Berhad to acquire two blocks of a semi-detached factory. The loan has been structured on so that Rectifier pays back in the principal over a 20-year period.
New commercial customer
Its latest customer Tritium is a Brisbane-based technology company that specialises in the design and manufacture of fast chargers for electric vehicles (EVs), power-electronic systems and battery energy-storage applications.
Established in 2001, the company has quickly garnered a strong position in the battery market with its products currently operational on every continent around the world and used in submarines, unmanned aerial vehicles (UAVs) capable of flying at over 40,000ft and even working in the extremes of Antarctica.
News of its US$5 million deal pushed Rectifier shares up 43% to A$0.03 per share in mid-afternoon trade.