On 26 April 2019, DTI Group Ltd (ASX: DTI) announced that it had received a contract to supply a CCTV surveillance solution for the prestigious Central Line fleet which is maintained as well as operated by Transport for London on the London Underground through UK integrator Delatim Limited.
As per the contract, the order includes the supply as well as the installation of 680 digital video recorders that will cover the entire Central Line fleet of vehicles. Also, each of the rail cars will have high-definition five-megapixel cameras that will provide an overall panoramic view of the passenger area.
The company expects that the project value will be around A$3.6 million. The deliveries of the systems are expected to start in the current financial year. The deliveries will be for the period of 4 years as the trains undergo renovation.
This project along with the other projects won by the company in the UK, especially in London Underground Northern Line trains, strengthen the growing position of the company in the global rail sector.
At present, the installation of the DTI solutions will be on two of the London Underground lines.
On 20 March 2019, the company highlighted that Volgren Australia Pty Ltd was awarded a contract from the Public Transport Authority of Western Australia (PTA) for the supply of 900 new buses for the Western Australian market to be delivered over a period of 10 years. DTI will be supplying as well as installing its CCTV recording system to Volgren for the PTA buses due to its long association with Volgren for the supply of equipment to public buses in Western Australia.
The company will be supplying as well as installing the IP cameras as well as digital recording equipments worth $10 million on these buses that will be built on the manufacturing facility of Volgren in Malaga situated in Western Australia. The company expects that the delivery will start in the fourth quarter of 2019 and will be delivered over 10 years.
For the half year period ended 31 December 2018, there was an increase in the revenue by 67.8% to $13.8 million as compared to the previous corresponding period. The company incurred a net loss of $0.23 million, down on $5.3 million loss in pcp with EBITDA gain of $0.31 million (1H FY18:$3.5 million loss).
The contracted order book declined by $33.8 million as a result of high revenue reported during the period. The balance sheet of the company reported a decline in the net asset base as a result of a reduction in the total asset. The total shareholders’ equity was $14,517,225. By the end of the 1H FY2019 on the 31 December 2018, the net cash and cash equivalent with the company was $1,174,262.
In the previous six months, the shares of DTI generated a negative return of 19.35%. The stock has given a positive YTD return of 25% as on 26 April 2019. Today, 29 April 2019, the stock is trading at A$0.050 (as at 1:03 PM AEST). DTI holds a market capitalization of A$10.77 million with approximately 215.34 million outstanding shares.