- Growth story of business efficiency and optimisation expert, Orcoda Limited (ASX:ODA) is under the spotlight after combatting the COVID-19 challenges.
- Orcoda has three divisions- Healthcare Logistics, Transport Logistics and Resource Logistics.
- The divisions have recently bagged long term contracts, with other contract wins expected in the near future.
- Sales forecasts of FY21 for the three Australian divisions looks promising from the business standpoint.
“Together, we are forging a solid position in the competitive but rewarding world of logistics excellence”, says Nicholas Johansen, Chairman of operational efficiency specialist Orcoda Limited (ASX:ODA).
FY20 has been a challenging year for the business. Orcoda had to incur significant expenditure in reducing its workforce which caused multiple redundancy payments, paying out multiple long service leave payments and payouts to consultants. Subsequently, a significant reduction in overheads was a dire consequence of the pandemic but bodes well for the future.
Growth story of business efficiency and optimisation expert, Orcoda Limit is under the spotlight after combatting the COVID-19 challenges. To read about Orcoda’s impressive September 2020 quarter performance, CLICK HERE.
There has been a positive performance uptick across the Company’s three Australian divisions, Healthcare Logistics, Transport Logistics and Resource Logistics. The improving performance has been majorly catalysed by long term contract wins, consecutive capital raisings and a dedicated team.
GOOD READ: Orcoda’s Objectives, Milestones and Outlook
Healthcare Logistics Division
Single Philosophy- Client Care
As Australia comes out of lockdown, Orcoda’s SaaS platform for healthcare is reportedly doing well and there is increasing participation from the seniors and disabled communities where Orcoda manage a fleet of vehicles to deliver these services. The Company has bids out on a few good potential contracts. If these are signed, a solid increase in revenues can be expected in this sector.
Transport Logistics Division
Efficiency, Visibility and Control Over Your Fleet and Services
The Transport division was adversely affected by COVID-19 with some expected income not proceeding, while receipts from customers were down from a year ago, things seem to be shaping well as the division was cash flow positive for the quarter ending 30 September.
Even amid the market volatility, the transport division maintained its main customers. There are some new customers close to signing SaaS contracts. Having said so, Orcoda Transport Logistics recently signed a SaaS contract with Holy Cross Laundry in Brisbane. To read more about the Holy Cross Laundry Contract, CLICK HERE.
To stay ahead of the field, Orcoda has researched and developed several new products within its Transport Logistics and Transport services business. The Company’s R&D projects and R&D programs reflect its support for Australian-based R&D that in turn helps Orcoda to improve and innovate its software and solutions.
Resource Logistics Division
Contracting, Management and Technology make us best in class for Oil & Gas, Mining and major infrastructure projects
Similar to the transport division’s stance in the September 2020 quarter, the Resource division revenues were also up. The major catalyst of this surged revenue was the Mt Buller transport project where Orcoda has contracted with Victorian State Government owned Mt Buller & Mt Stirling Management Board to manage a large fleet of buses and rideshare vehicles to transport visitors during the snow season. The long-term contract is likely to generate an expected $2-3 million per annum in revenue.
Besides, the division is bidding on several large infrastructure projects currently. This further ensures that Orcoda can look forward to promising years ahead.
Orcoda shares traded at $ 0.12 on 6 November 2020 (11:13 AM AEST).
To read more on the solutions of Orcoda Limited, CLICK HERE.