An Australian-based IT company, Spectur Limited (ASX: SP3), owns the rights to its disruptive cloud-based IOT and innovative hardware and security systems operating in Australia. The company services two largest industries, including the building/construction/civil industry and the government/utilities sector. Spectur’s core products include the HD5 wireless solar security camera system, a time-lapse camera, a thermal security camera and a shark warning system.
Security and Safety Risks Have Become A Global Problem
As the problem of security and safety risks are increasing around the world, the company is using solar, artificial intelligence & IoT to revolutionise security & surveillance.
It can be seen that the built environment is growing continuously with the expansion of urban renewal, infrastructure and resource projects. The insurance costs and requirements are also increasingly becoming burdensome with this expansion. In this scenario, the internet of things (IoT) and computing power are providing the tools to sense, think and act in ways one has never done before. The major challenge is that the cost of putting people or power in an exposed environment can be prohibitive, so one may not have visibility of one’s assets or an ability to act on what one sees.
How Spectur is Solving the Global Security Problem?
Spectur is providing security and surveillance systems that are linked to cloud-based technology solutions. The systems developed by the company protect organisations and businesses in commercial, industrial and government sectors. Spectur’s platform and infrastructure provide customers sight and more on site - anytime and anywhere; connect tools to the internet, users and decision-making tools reliably, and in a user-friendly way; and take actions either manually or through supporting decision rules or artificial intelligence. The company has deployed over 1,600 of these systems to date.
How Spectur Holds A Competitive Advantage?
The equipment of vertically integrated security companies are expensive and have a high false alarm rate. Also, it is not their core business to design those equipment. However, Spectur’s tailor-made hardware and software system delivers best in class “false alarm” performance due to the advanced camera and server-based Artificial Intelligence (AI). The system provides tailored solutions at lower costs of data, monitoring, call out and inconvenience. The company’s system also offers full-colour high definition pictures in comparison to black and white pictures.
A Look At Spectur’s HD5 Wireless Solar Security Camera System
The company’s HD5 Wireless Solar Security Camera System is Australia’s No. 1 solar security camera solution that helps in controlling crime.
The key features of the system include:
- No Requirement of Power - The system runs on solar energy and battery, eliminating the need for cabling or wiring.
- Multiple Recording and Alarm Modes - One can control the operation of system recording and can send alerts day and night.
- Evacuation Alert - The system also contains the feature of evacuation alarms and spoken warnings.
- Pre-recorded Spoken Warnings - The pre-recorded spoken warnings in the system is highly beneficial at frightening off the intruders.
- Live Viewing - One can keep a check on the happenings in real time from the computer or phone due to the live viewing facility.
- Advanced Motion Detection - The system offers advanced motion detection as it uses advanced AI to minimise the false alarms.
- Full Monitoring Station Integration - The professional monitoring or self-monitoring feature is an added advantage.
- Bright White LED Light - The bright white LED light fitted in the system acts as a strong deterrent and delivers full colour night-time images.
Spectur’s Financial Performance:
Spectur reported record financial results in the first half of the financial year 2019. The company’s revenue grew 94 per cent to $2.2 million in H1 FY2019 relative to the previous half year. The company reported a well-positioned balance sheet with $1.4 million of cash and $1.4 million of inventory as at 31st December 2018. The gross profit margins of the company improved 59 per cent, supported by new products, an increase in pricing and a larger proportion of rentals.
Spectur achieved its first cash flow-positive month in January 2019, fuelled by growing recurring revenue base. The performance of the company in H1 FY2019 indicated that it is moving towards positive EBITDA. Spectur’s EBITDA loss was 15 per cent down to $1.50 million during the period.
In May this year, the company informed that it expects to deliver FY19 full-year revenue in the range of $4.5 million to $4.7 million, an improvement from $2.48 million the year before. This represented a rise of 81 per cent on FY18’s revenue of $2.48 million. This revenue guidance was given as the company received a record number of large orders for thirty-nine HD systems.
Source: Company Presentation (8th May 2019)
Growth Opportunities for Spectur
The company is pursuing growth across many avenues including Geographic expansion, Outbound sales infrastructure, Product and service expansion, Channel ready product and Customer expansion.
Let us have a look at the opportunities available in each one of these avenues:
Stock Performance: The company’s stock is currently trading higher on ASX at AUD 0.110 (as at 3:42 PM AEST on 12th July 2019), up by 4.76 per cent relative to the last closed price.
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