Australian security technology provider Spectur (ASX: SP3) is bounding into the new financial year on record revenue growth despite the challenges presented by COVID-19 in 2020.
The company in Q4 of FY21 posted its highest revenue values in its corporate history, representing a dramatic improvement from the same period a year ago. This is despite the pandemic affecting one of its key market segments, building and construction, along with customer confidence.
Spectur develops security, surveillance and warning solutions powered by solar, leveraging Internet of Things (IoT), artificial intelligence (AI), camera and cloud-based technology.
Its systems are used in a variety of applications such as building and construction sites, warehousing, remote and/or isolated facilities, parking lots, beaches, parks and bushland.
Spectur managing director Gerard Dyson said the company is well positioned to continue its growth trajectory in the 2022 financial year with a growing project pipeline and an ongoing review of strategic acquisition targets.
“FY21 started in challenging times: COVID-19 related lockdowns and associated circumstances were affecting customer confidence, the building and construction sector was depressed, Spectur was on the cusp of launching a unique technology platform (STA6), the sales team were newly appointed, and we were between sales managers,” he said.
“Noting these conditions and consistent with our strategy, we delivered the STA6 to market, bringing once-unavailable features and capabilities to customers, expanded our sales channels (with select re-sellers and Spectur NZ) and continued our push into government, utility and related customers.”
Dr Dyson said the company finished the year with a strong pipeline of prospects, balance sheet strength, a supporting debt facility, a stable organisation and realisation of the investments in its outbound sales and account management processes.
“We are optimistic about the organic and internally funded growth potential that we can achieve in the coming year, and we will continue to seek strategic acquisitions, at the right price, to supplement our growth profile,” he added.
Technology to improve safety, prevent crime and enhance productivity
Spectur has harnessed visual AI and IoT to help organisations protect people and property and improve productivity – even in remote locations and harsh conditions.
Its solar and battery-powered security, surveillance and warning systems involve cameras and sensors wirelessly connected to edge and cloud-based processors, which use decision rules and AI to think and interpret images and other sensor data. This enables the platform to act in various ways including on-site alarms, internet or app alerts, lights, switching and other applications.
The company owns the rights to its innovative hardware and disruptive cloud-based systems which are deployed to a variety of industries including government and utilities, and the building, construction and civil sectors.
Some of Spectur’s customers include the John Holland-CPB Contractors roads and rail joint venture, engineering group Downer, diversified property developer Stockland, the Burdekin Shire Council, home builder Glenway Homes and residential developer Peet.
In its latest update, Spectur announced record revenue performance for the June quarter, FY2021 second half as well as the full year, bolstered by strong sales in the telecommunications sector.
Its June quarter revenue came in at $1.8 million compared to $1.05 million this time last year, with about half deriving from equipment sales. Revenue also came from recurring channels (equipment rentals and subscriptions), field services and professional fees.
The company’s half and full year revenues totalled $3.2 million and $5.2 million, respectively.
Spectur generated $333,000 in operating cash for the fourth quarter and while there have been positive cash flow quarters in the past, it’s worth noting that this one only included minimal government support (whereas others have typically coincided with research and development tax returns).
“This demonstrates Spectur’s ongoing improvements in both revenue and cash performance,” the company reported.
The company finished the financial year with 45 systems installed in the telecommunications sector (a jump from the 15 systems at the end of the third quarter) and is advancing discussions to grow this market segment further in the new year.
It entered the first quarter of FY2022 with a strong forward order book of commitments including the planned installation of the first phase of Surf Life Saving solutions in New South Wales and Western Australia.
Meanwhile, Spectur executed final documentation on a $1.5 million loan facility with EGP Capital in May, which is expected to support short and medium-term capital requirements as they are required.
“Investments in the last 12 to 18 months are bearing fruit as planned, and we will continue to execute our organic growth strategy from a newly strengthened platform,” Dr Dyson said.