Traffic Technologies wins $5.7m intelligent traffic control equipment contract with Coates
Traffic Technologies’ iTS business will supply Coates with traffic control equipment including electronic signs, radar equipment and software.
Australian traffic hardware and software solutions provider Traffic Technologies (ASX: TTI) has won a $5.7 million contract to supply Coates with a range of intelligent traffic control equipment comprising electronic signs, radar equipment and associated software.
The orders were awarded to the iTS (Intelligent Traffic Systems) business of Brisbane-based Artcraft Pty Ltd, which was acquired by the company in June.
The new signs are expected to be ready for delivery by mid-next year.
Portable systems
Posting an average revenue over the past three years of approximately $4.9 million, iTS Artcraft designs, manufactures and supplies portable electronic road signage and software systems to customers across Australia.
The products monitor and display road changes, construction zones and adverse conditions and inform motorists of the hazards to help optimise traffic flows.
The acquisition was structured as an asset purchase with Traffic Technologies acquiring the business and assets, along with customer contracts, staff, plant and equipment and a finance lease liability.
Growing sector
Traffic Technologies managing director Con Liosatos said the iTS business is a good fit for the growing intelligent traffic systems sector.
“In today’s road environment, static road and street signs are no longer enough to provide motorists with the right information when they require it,” he said.
“Electronic information displays represent a value proposition for state road authorities and local councils and are being increasingly used for traffic management on congested roads.”
Rights issue
Earlier this month, Traffic Technologies launched a rights issue to raise $10.3 million.
The company has invited shareholders to participate in the non-renounceable pro-rata entitlement offer of seven new shares for every 10 shares held, at an issue price of $0.03 each.
The proceeds will be used to repay existing debt, working capital and to fund accretive and strategic acquisitions.
The offer will close at the end of November.
Strong order book
The Coates deal is the latest in a string of contracts which have helped Traffic Technologies build a strong order book during the year.
An increase in nationwide road infrastructure spending boosted the company’s 2021 trading revenue to $52.3 million and saw long-term supply contracts secured with state and local government agencies, major power companies and contractors.