On 11 January 2019, CCP Technologies Limited (ASX: CT1) released its Investor Presentation on ASX.
CCP Technologies Limited is an Australian based technology company. With a global market, the company specializes in IoT (Internet of Things) product development and management for the food industry.
In the investor presentation, the company has informed about revolutionizing the global food supply chains and its impact on IoT. In the presentation, the company informed that the Internet had become an indispensable part of every business and IoT is set to feature in every supply chain. In every Industry, there are millions of critical control points which occurs in every supply chain.
In the presentation, the company has also mentioned the key food industry facts for Australia such as $20 billion is the cost of food waste, 5.4 million people are suffering from food poising, the retail and consumer segment is contributing 40% to food waste with 60% through the food supply chain and $1.25 billion is the annual cost of food poisoning to the economy.
In the presentation, the company has mentioned following customer pain-points:
- Pressure to reduce costs associated with refrigeration power usage and break-downs.
- Perishable foods must be maintained at correct temperatures to remain safe to consume. Failure often leads to wastage and for most perishable foods, remaining shelf-life is a function of temperature over time. Once lost, shelf-life cannot be recovered.
- Food safety regulations stipulate safe temperature thresholds for food, and there is a legal obligation to comply.
While addressing the pain points, the company aims to provide the critical information which is required for effectively managing the food throughout the cold chain.
The company has also disclosed the pipeline of opportunities such as 92 potential opportunities with an estimated contract value of $7.2 million and 66 advanced opportunities with an estimated contract value of $2.2 million.
The company also mentioned that right now they are focused on those areas which will contribute to future revenue growth as discussed below
- Supply chain solutions (tracking and temperature monitoring) – While the in-situ monitoring market segment is estimated to be 2.8 million monitoring points in Australia and the US, the shipment monitoring segment is estimated to be 450 million monitoring points and all cold chain stakeholders have a requirement for temperature monitoring to comply with food safety legislation and regulations.
- Managed cold chain services – Managed services are not a new concept. From every corner, there’s increasing pressure being applied to cold chain infrastructure and operations and the company will also explore new monitoring solutions.
- Blockchain solutions – Globally, food companies are looking to use Blockchain to improve through-chain transparency and accountability. The Blockchain will support various business rules, which will enable CCP customers to enter into smart contracts.
In the presentation, the company has also mentioned their quarterly results. In that CCP has mentioned that their Quarterly receipts are steadily rising as they secure more subscription and development contracts and due to that their Quarterly cash burn has declined steadily. While labor costs will increase, CCP is anticipating that the monthly cash burn will remain steady as larger contracts are secured.
In the last six months, the share price of CCP Technologies Ltd has decreased by 25 percent as on 10 January 2019. The company’s shares traded flat, closing at A$0.013 with a market capitalization of circa $5.11 million as on 11 January 2019.
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