Traffic Technologies releases its September quarterly activity report

Traffic Technologies Ltd (ASX: TTI) has released its September quarterly activity report, in which they highlight a solid outlook going forward.

Traffic Technologies Ltd (ASX: TTI) has released its September quarterly activity report, in which they highlight a solid outlook going forward.

The traffic solutions provider’s report showed buoyant demand with term contracts in hand of A$26m and a “firm” quote pipeline of a further $69m.

This was largely due to increased infrastructure spend by government and municipal councils, further cementing Traffic Technologies as the most established and innovative  traffic solutions provider.

Activity ramped up on TasNetworks contract

The recently awarded TasNetworks streetlight replacement contract is expected to see activity ramp up in the December quarter, with TTI confident of positive results.

 The contract has been up and running through the September quarter and training and infrastructure is in place to meet future programming schedules

Strong order book despite lower operation revenue

TTI noted that their order book remains strong. Operating revenue was down 27% from the comparable quarter in 2022 , largely due to the completion of term contracts, including for the supply of portable electronic signs locally (in Australia) and traffic controllers overseas.

The company noted supply chain issues, government delays on projects and the Australian dollar depreciation affecting imported components, however points to a promising outlook ahead with “a strong order book and term contracts with visibility greater than five years”.

Intelligent transport technology opening up new business opportunities

In its report, Traffic Technologies highlighted the additional capability and marketing opportunities of its expansion into the Intelligent Transport sector.

Supplying sophisticated ‘Smart City’ ready electronics across Australia has not only provided additional capability for installation and maintenance work but also opened new channels for TTI to market its IoT devices and traffic management products and services.

IoT (Internet of Things) devices monitor real-time data about congestion levels and road conditions, providing essential information for city planners and emergency services.

Profit improvement program to positively impact results going forward

TTI expects its profit improvement program to generate cost savings of over A$1m of efficiencies in the next 12 months and will involve relocating and consolidating production into new facilities.

The company expects to see benefits from this program in the months ahead.

To stay up to date with company news and announcements, register your interest on the Traffic Technologies investor portal.

Reach Markets have been engaged to help manage TTI’s investor communications and may receive fees for its service.

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