Spectur (ASX: SP3) has almost doubled the size of their contract with Optus – which now stands at $2.023 million. The updated statement of work extends the multi-year rollout of Spectur hardware, services and software subscriptions to protect and service remote assets of Optus and Australia Tower Network (ATN).

The updated agreement builds on a prosperous relationship between the two companies that has served as validation of the value that SP3 can deliver for their blue chip clients. A key part of Spectur’s growth strategy centres on institutional contracts, and as Optus grows their network coverage – Spectur will be growing right alongside them.

MD of Spectur, Gerard Dyson, said: “We see this step-up in our engagement with Optus as a validation of the return on investment that we can deliver for blue chip customers.”

“This relationship [with Optus] and the positive impact that Spectur solutions have had in reducing theft, vandalism and disruption, has led to a continuation and expansion in the deployment of Spectur platforms.” 

Singtel, which acquired Optus in 2001, has contracted Spectur to monitor and protect its network; a vital part of the telecommunications industry and therefore, the economy as a whole. It’s an area Singtel are heavily investing in, and ATN has attracted institutional investment from Australia’s biggest industry super fund – AustralianSuper. 

The superannuation giant paid $1.9 billion for a 70% stake in ATN at the end of 2021, a Singtel subsidiary that operates Optus’ passive telecommunications tower infrastructure. The network consisted of 2,300 mobile network towers and rooftop sites as at 2021.

The signing of a new agreement at the end of 2021 showed AustralianSuper were keen to continue their relationship with SP3, following AusSuper’s acquisition of a majority stake in ATN, which was conducive of further contracts that Spectur is now winning. ATN subsequently forked out $3.58 billion in April 2022 to acquire Axicom and its 2,000 towers, with the Head of Infrastructure at AustralianSuper stating that they wanted to double their already large $31 billion infrastructure exposure within the next five years – citing significant growth in demand in digital infrastructure. 

Acquisition of 3CT to enhance Spectur’s capabilities and financial position

The contract boost is off the back of Spectur recording their highest revenue quarter ever (Q2 FY23 coming in at $1.957 million), and the completion of their strategic 3 Crowns Technologies (3CT) acquisition. As well as giving the company an additional $1.3 million of revenue, of which $1 million is recurring, $59k EBITDA and a foothold into the US – Spectur has acquired a tech stack that is already built, tested and commercialised – leaving it heavily de-risked. 

An example of this would be 3CT’s ‘Coastalcoms’ platform, which collects critical surf, wave and shoreline data points that are analysed and sold to customers such as Surfline – a global provider of trusted and accurate surf reports and forecasts. Spectur will also be entering the national flood detection market, and one that 3CT has only targeted in Queensland so far. Where SP3’s product offering would have been for just their cameras, they are now able to offer all of 3CT’s data visualisation and access to other data and sensors into this market. This is a growing and underserved market, with no solar powered security camera operators offering these types of integrated remote sensing, thinking and reporting capabilities.

With the acquisition of 3CT, Spectur has saved an estimated two years in painstaking R&D. At a net acquisition cost as low as $550k ($300k cash and $250k scrip), this results in a 9.3x EV/EBITDA multiple, and a mere 0.42x EV/Revenue multiple – which the company believes represents incredible value.

Spectur MD Gerard Dyson is holding an investor briefing this Thursday, 2nd of March at 12pm (AEDT) to discuss the Optus contract, half year results and acquisition of 3CT in more detail. Click here to book in.

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