Orcoda Limited Provides An Update On Its Transport Logistics Contract Win

Orcoda Limited (ASX: ODA) provides logistics services. The Company offers fleet management, distribution of goods, supply-chain, delivery, and other related solutions. Orcoda serves customers in Australia.

The company, today on 15 March 2019, has come up with an update that its Transport Logistics division has signed a national multi-year contract with long term and loyal customer, CEVA Logistics Australia (“CEVA”).

CEVA Logistics is into the business of SCM (supply chain management) companies. The company designs and implement top notch industrial solutions in both freight management and logistics.

The new contract will allow CEVA to consolidate the distribution of different brands of passenger tyres to retailers across Australia. The Company will implement phase one this month in Victoria. Phase one is valued at approximately $108,000. The other states will follow soon. The Company advises that it is in discussions with CEVA for optimising replenishment of convenience stores.

The Company also advises that a long-term customer of over ten years, Mrs Macs, has come to an end because Mrs Macs have sold their distribution channel. The Mrs Macs agreement will complete at the end of March and is valued at $2,400 per month.

Managing Director, Brendan Mason said that the management is extremely pleased to expand its partnership with CEVA, a global supply chain leader.

The interim report of the consolidated entity for the half year ended 31 December 2018, states that the revenue (inclusive of R&D grant and interest) increased by 21% to come in at $1,051k from corresponding half-year period. The Consolidated Losses decreased from $2,922k down to $836k from corresponding half-year period. The company’s cash holdings at 31 December 2018 were $801k.

The company is applying for a commercialisation grant of approximately $500k. Sales are increasing in the three divisions being Transport Logistics, Resource Logistics and Healthcare Logistics. Management feels that the cash burn rate is forecasted to be approximately $100k per month for the next quarter which is a substantial improvement over the cash burn rate from the previous half of approximately $500k per month.

The company is pleased to advise that the Transport Logistics division has lowered overheads and increased revenues and was profitable for last half after accounting for R&D grants. The Healthcare Logistics division continues to expand its revenues with income coming in from user Acceptance testing of our software and income being generated from Company vehicles and R&D grants from its continuing R&D program. The Resources Logistics division has a healthy funnel of sizeable opportunities, with many quotes currently being considered by our large mining customers but is yet to sign up a sizable project.

On the price-performance front, the stock has posted the YTD return of -35.90%. The company also has posted returns of -37.50%,  & -16.67% over the past six, & one-month period respectively. At the time of writing (15 March 2019, AEST 02:35 PM), the stock of the company is trading at a price of $0.115, down 8% during the day’s trade with a market capitalisation of ~$ 11.18 Mn. The stock opened the day at $ 0.125, which was also the day’s high and touched the day’s low of $ 0.115, with an intra-day volume of around 1,439. It had a 52-week high price of $ 0.375 and a 52 weeks low price of $ 0.099, with an average volume of, 31,009 approximately.


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