Strengthening market conditions have helped Australian security technology provider Spectur (ASX: SP3) close out the second half of the 2021 financial year (FY 2021) with $3.2 million in revenue and improvements across other key performance metrics.
The revenue figures represent a 58% jump on the $2 million recorded in the first half of FY 2021 and were enabled by the easing of government-enforced lockdowns and other restrictions brought about by the COVID-19 pandemic.
Improvements were also recorded across key metrics such as profits, margins and cash.
Spectur managing director Dr Gerard Dyson attributed the results to a stabilised and experienced sales team which is “beginning to reap the results of long-cycle outbound prospecting”, as well as an expanded technology platform which has created more offerings and better performance for customers.
“While government-enforced temporary lockdowns are partially impacting [our] customer base in the first quarter [of the 2022 financial year], the underlying drivers of improved performance remain and are continuing to gather momentum,” he noted.
Spectur concluded the FY 2021 with an unweighted pipeline of $4.65 million in sales opportunities with utility customers, local councils, resource and construction companies.
That pipeline has since grown to $5.62 million and includes more than 330 active opportunities ranging in status from open to verbally approved.
Sources include inbound sales in response to crime or related events; ongoing management of more than 500 existing customers; and outbound customer development.
“These customers continue their procurement processes largely independent of government-imposed lockdowns,” Spectur reported.
“While there has been some reduction in inbound customer activity since June coincident with east coast lockdowns, the pipeline has strengthened.”
In July, Spectur experienced a 40% increase in revenue compared to the previous corresponding period when COVID-imposed restrictions were less stringent.
This translated to the current deployment of 341 rental security units, compared to 242 units at the end of July 2020.
Cash at hand
Spectur finished the financial year with $1.7 million cash at bank, giving it little need to draw on a $1.5 million debt facility secured in April with shareholder EGP Capital.
Dr Dyson said the company did not anticipate a requirement to draw on the facility prior to the receipt of shareholder approval at the company’s annual general meeting in October.
“[We] have launched into the new financial year with a strong balance sheet, pipeline and stable team [and] we have a number of exciting sales opportunities and technology developments that are expected to come to fruition throughout the year,” he said.