Traffic Technologies wins $5.7m contract, validating its technology within the Smart City segment – Stockhead
Traffic Technologies’ contract win today further establishes its credentials in the multi-billion intelligent transport and Smart City sectors.
Provider of end-to-end traffic management, IoT and Smart City solutions, Traffic Technologies LTD (ASX:TTI) has just won a significant contract worth $5.7m from Coates, an Australian-based traffic control equipment rental company.
The deal was awarded to Intelligent Traffic Systems (iTS), a Brisbane-based business that was acquired by TTI earlier this year.
Under the sales contract with Coates, iTS will supply $5.7m of Intelligent Traffic Control equipment, consisting of electronic signs, radar equipment and associated software.
Delivery of the signs is expected to be completed by June 2022.
iTS’ Intelligent Traffic Control equipment can monitor, display and inform motorists of road hazards, construction zones and adverse conditions ahead, optimising traffic flows.
The technology effectively enables motorists to make informed decisions ahead of time in a timely manner, enabling smoother traffic flows on the road network.
“Such a significant contract is a further endorsement of the company’s expansion into the Smart City profile,” commented Traffic Technologies CEO, Con Liosatos.
“This was achieved through the important acquisition of the iTS business, and its Intelligent Traffic Control solutions.”
Long term contracts and solid balance sheet
In June this year, TTI acquired iTS, a business focused on the design and manufacture of electronic road signage and software systems.
That acquisition has today proven to enhance the company’s position in the intelligent transport sector.
This sector represents a value proposition for state road authorities and local councils in managing congested roads.
Today’s deal follows an announcement earlier this month of a capital raising to reduce TTI’s debt, and execute its growth and acquisition strategy.
Funds from the $10.13m rights issue are expected to reduce debt by more than 60%, and interest costs by 70% or $1.6m.
The fresh capital will also be used to execute its acquisition strategy to leverage its comprehensive traffic solutions, by continuing to expand and commercialise its SaaS platform.
TTI is positioned to be a big winner from the push towards Internet of Things (IoT), big data and digitisation in traffic technology.
In 2020, the global big data industry was worth about US$138.9 billion, and is expected to grow to about US$229.4 billion by 2025.
TTI recorded a solid FY21 performance with improvements across all key metrics, with revenue growing strongly (including recurring revenues, which account for 40% of the total), along with numerous long-term contracts signed.
MD of Traffic Technologies Con Liosatos will be hosting a love and online investor briefing tomorrow at 11am AEDT. Click here to register.