Australian-based technology company BidEnergy Limited (ASX:BID) made an announcement on 17 December 2018 stating that it has entered into a five-year agreement with the Australian division of Cushman and Wakefield (C&W) to provide end to end energy spend lifecycle management services for the supply of electricity and natural gas, water and council rates to its customers. Following this news, the share price of the BidEnergy increased by 6.061 percent as on 17 December 2018.
The onboarding and integration with C&W will now commence, and the first revenues under the Agreement are expected to begin from March 2019 to be completed by 1 July 2019. The revenue generated by BidEnergy under the agreement is currently expected to contribute 18 percent to Annualised Subscription Revenue (ASR) once all the meters have been on-boarded.
The agreement between both the companies is subject to cancellation and termination provisions which means that C&W at its convenience can cancel or terminate the multiyear contract without cause, upon giving written notice.
BidEnergy’s Managing Director Mr. Guy Maine said that the company is very excited to be chosen by Cushman and Wakefield to assist them in providing their clients with first-class energy spend management services supported by the power of its global leading Robotic Process Automation (RPA) solution. He further added that more and more enterprise customers see an upside that RPA delivers.
RPA provides quick, immediate access to core business data, accuracy that only robotics can achieve. Further, it is a cost-effective solution that enables people to become more productive with the manual, laborious workload removed. As per the company’s announcement, since December 31st, 2017, all new customer acquisitions have contributed to BidEnergy’s ASR increasing 89 percent to $3.4 million from $1.8 million.
Earlier on 13 December 2018, the company’s securities were placed into a trading halt at the request of BidEnergy pending an announcement regarding the acquisition of a material customer contract.
In the September quarter of 2018, the company reported an underlying revenue (unaudited) of $1.3 million which was $1.0 million higher than the June quarter of 2018. Further, the company reported the group’s total combined annualized revenue of $4.7 million in the September quarter which includes $2.7 million of Annualized Subscription Revenue and $2.0 million of Annualized Rebate Capture Revenue. At the end of the September quarter of 2018, the company had cash on hand of $4.6 million which was $5.3 million less than the June quarter of 2018.
In the last six months, the share price of BID increased by 263.97 percent as on 12 December 2018. BID’s shares traded at $1.050 with a market capitalization of circa $107.83 million as on 17 December 2018.
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