Spectur (ASX: SP3) is preparing to scale its security technology business by targeting new geographical regions and customer sectors to gain better exposure to a market estimated to be worth around half a billion dollars.
The Australia-based company develops security, surveillance and warning solutions powered by solar, leveraging Internet of Things (IoT), artificial intelligence (AI), camera and cloud-based technology.
Spectur currently serves customers in Western Australia, New South Wales, Victoria and Queensland and has a small presence in New Zealand.
In a new investor presentation, the company outlined its many options for growth which includes increasing its geographic presence in Australia and New Zealand with an expanded sales footprint in South Australia and the Northern Territory as well as extending its use of resellers to address regional areas.
In addition, Spectur aims to expand its presence to the US states of Texas and California, where it has estimated a total addressable solar/outdoor security, safety and smart sensing market worth in excess of $310 million.
Adding these regions to the estimated $115 million Australian and $23 million New Zealand markets would bring Spectur’s total addressable market to at least $448 million, and that’s without even having an estimated size for the outdoor smart city, IoT sensing and controls market.
Shift in focus to larger customers
The company has more than 500 active customers in a variety of industries including government and utilities, and the building, construction and civil sectors.
Some of its 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.
Spectur also noted in its briefing that it has recently shifted its focus to larger customers such as large contractors and construction alliances in the building and construction sector.
It has also achieved strong growth in telecommunications with a growing forward order book with multiple customers, as well as in state and local government as relationships mature.
Spectur has recently expanded its presence in the safety and community services sector with its shark warning system being used by Surf Life Saving and other charities.
Additionally, the company aims to expand its customer base by targeting larger industrial and farming companies.
Scaling on the back of record revenues
The company’s presentation follows its recently announced June quarterly results, which saw revenue reach a record $1.8 million for the three-month period and $5.2 million for the FY2021 full year.
Spectur identified three main focuses of its scaling strategy: technology, sales consolidation, and strategic acquisitions.
The company is planning to expand its AI, sensing, hardware and software applications to provide new features and advance modularisation to allow more third-party cameras, peripherals and software.
It also aims to improve the user experience through an enhanced graphical user interface (GUI) and dashboard, and mature production to match demand and protect margins.
In terms of sales consolidation, Spectur will continue expanding its reseller network to make it easier for customers to get sales and support and aims to build on outbound and account management led sales growth to target strategic customers.
It will also continue its ongoing search and review of acquisitive growth options.