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Australia’s $18 billion issue this AI is helping to address

August 3, 2022

Australia’s $18 billion issue this AI is helping to address

Australia has suffered through floods, bushfires, tsunamis and other natural disasters that, on an annual basis, have taken more than 80 lives and cost an average of $18.2 billion. Remote areas are likely the worst affected due to their low capacity for disaster resilience.

Australia has suffered through floods, bushfires, tsunamis and other natural disasters that, on an annual basis, have taken more than 80 lives and cost an average of $18.2 billion. Remote areas are likely the worst affected due to their low capacity for disaster resilience.

Spectur Limited (ASX: SP3) addresses these threats through its solar-powered, AI-enabled security and warning systems, which are capable of independent, wireless operating in harsh and remote conditions, detecting potentially dangerous situations early and responding quickly to minimise the loss of lives and damage to property.

The systems also monitor and protect assets from theft, trespassing, illegal dumping and vandalism for clients ranging from engineering and construction companies to government installations and utilities.

Autonomous, wirelessly connected and managed by artificial intelligence provided by CSIRO’s Data61 digital research labs, Spectur’s mobile, modular camera-based units sense, think and act independently.

Construction companies have reported that Spectur’s solutions reduce the incidence of building site crime by more than 90%. On the occasions where crime persists, it becomes small-scale and time-constrained.

To stay up to date with Spectur’s news and announcements, register your details here.

Source: Spectur Limited (ASX: SP3)

Spectur’s technology platform is a ‘set and forget’ solution that can be used in remote settings where other solutions may not be feasible.

And because it is 100% Australian designed, manufactured and coded, it meets the high standards of data security demanded by institutional and governmental clients, creating further competitive advantage.

The company has a successful growth record, with over 2500 systems deployed across more than 600 clients, including Optus, Australia Tower Network, state and local government authorities and large construction contractors, such as Multiplex and John Holland.

It has achieved a dominant position in its local market of Western Australia, with a ~25% market share, and now intends to replicate this success across Australia and New Zealand followed by select US states, where trials are currently underway.

To stay up to date with Spectur’s news and announcements, register your details here.

Turnkey solution for government and institutional clients

From a client perspective, Spectur provides a turnkey solution, including hardware, software and an app that makes managing the system simple and convenient.

The technology can adapt to customers’ unique needs, integrating with third-party sensors and applications to interpret data and trigger different actions remotely and independently.

Source: Spectur Limited (ASX: SP3)

The business is fully vertically integrated, with all processes from R&D through to sales internalised. This allows it to be flexible when it comes to addressing customer requirements, and creative in tackling supply chain challenges.

Spectur offers a variety of different platforms for sale, either individually or as multi-system set-ups, and also provides rental and leasing options, as well as a wide range of professional services such as development, customisation and integrations.

Used by institutions such as Optus, Australia Tower Network and Department of Defence contractors, Spectur has grown to dominate its home market in WA with a market share of ~25%.

Spectur estimates the target market in Australia alone to be worth $120 million, and a potential A$300 million-plus near-term market opportunity with limited international expansion to the US.

To stay up to date with Spectur’s news and announcements, register your details here.

‘Clear strategic path’ into FY23

The company more than doubled its total revenue from FY18 to FY22 despite COVID headwinds, and finished Q4 FY22 with steady revenue performance of $1.43 million for the quarter and $491,000 of revenue in the month of June

Full-year FY22 revenue of $5.83 million was up 11% on full-year FY21 ($5.25 million). Recurring revenue for the year (comprising subscriptions and rentals) grew to $3.33 million, with June annualised recurring revenue equivalent to a yearly run rate of $3.76 million.

For FY22, recurring revenue comprised 57% of overall revenues at 70% gross margin.

Source: Spectur Limited (ASX: SP3)

Spectur managing director Dr Gerard Dyson said Q4 had seen the results of an extended period of marketing and sales activity, which has substantially built the company’s sales pipeline.

“Whilst the last two months of Q4 FY22 were slightly subdued from an equipment sales perspective in response to the volatility of global financial markets and related concerns, the volume of new opportunities that fit our strategic profile increased substantially, and this pipeline will underpin our growth into FY23,” Dr Dyson said.

“We have a clear strategic path and, with recent funding activities, the balance sheet to execute.

“It is our expectation that the work we will be doing to build the sales and marketing resources, globalise our technology and plan for further expansion internationally will drive the inflection point in sales, revenue and ultimately profitability and cash generation.”

To stay up to date with Spectur’s news and announcements, register your details here.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Spectur Limited and will receive fees for its services.


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