On 11 January 2019, Redflex Holdings Limited (ASX: RDF), a world leader in traffic enforcement products and services, released its Q2 FY19 Sales Activity Update. The company develops and manufactures a wide range of digital photo enforcement solutions by utilizing the most advanced sensor and image capture technologies.
The company has mentioned that there is a continuous strong sales momentum with confirmed new orders in all key geographies.
The company has received a total contract value (TCV) of $11.4 million in confirmed sales orders for both project and annuity streams which represents a 18% growth on their strong Q1 result, new project orders of $7.9 million, an upside of 55% over the prior year, and annuity orders of $3.5 million, which represents an increase of 46% on prior quarter.
The company also mentioned some of the below mentioned key highlights:
- The company has secured the additional order from Highways England for $2.0 million of equipment for delivery in FY19.
- The company has undertaken a further expansion of the program in Belgium with an order for additional mobile unit’s worth of $0.7 million.
- Ongoing orders for programs within Australia underpinned by new installations on Peninsula Link in Victoria, and this order is worth of $1.3 million and a variety of projects for Roads & Maritime Services in New South Wales, and this order is worth of $0.4 million.
- Additional equipment orders to support existing programs in Saudi Arabia and the United Arab Emirates. This order is worth $2.5 million.
- $15.1 million of total contract value was renewed in Q2 across both the Americas and International businesses.
The company has also disclosed their total contract value by region as well as revenue type. Some of the developments are:
- Total contract value by Region: The key developments are:
- Global Sales Pipeline with estimated closed dates in the next four quarters remains in excess of $300 million.
- Significant Sales Pipeline opportunities remain within all their key geographies.
- APAC contributes 47% to the sales pipeline, the Americas contributes 29%, and EMEA contributes 24%.
- Total contract value by Revenue Type: The key developments are:
- The company has a solid balance of new projects and new annuity sales opportunities and now continuously focuses on growing annuity streams in both the Americas and international segments.
- Renewal rates remain stable at above 90%.
- As per the region-wise Project base contributes 47% to the sales pipeline, New Annuity contributes 43%, and Renewals contributes 10%.
The company also disclosed the sales orders of $11.4 million (Total contract value) in Q2 FY19 and has also received new orders from each of their key regions – Europe, Middle East, Australia, and the Americas.
On January 11, 2019, with this update, the shares price of Redflex Holdings Limited has settled at A$0.450, up by 1.124%. The market capitalization of the company stood at circa $66.85 Million. In the time span of the previous six and three months, the stock delivered the returns of 11.25% and 7.23%, respectively. However, during the last month, RDF delivered the return of 3.49%.
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