With cash in the bank, a strong sales pipeline and unique in demand products, Bond-esque Spectur is smiling for the camera at the start of FY23.
With a mission to make communities safer through its solar-powered security, surveillance, and warning solutions tech, Spectur (ASX:SP3) is in a prime position to capitalise on growth.
Spectur delivered strong FY22 results including revenue of $5.83m (up 11% on pcp), of which $3.33m (57%) is classified as recurring revenue.
During July Spectur undertook a successful placement of $1.86m in July, and a Securities Purchase Plan (SPP) to raise $500k is now open to shareholders.
Spectur MD, Gerard Dyson said the company has plans to create an inflection point in its revenue growth, which requires spending more money.
“We’ve been quite frugal in the past couple of years, particularly because of Covid,” Dyson said.
“Now we feel the lockdowns are behind us, we want to deploy a bit of money in a few discrete areas to get the top line growing and push us into cash flow positive.”
“I’d like to hire more engineers to get the product ready to scale internationally, I want to hire more salespeople in Australia so we can get market domination here and spend some more money on digital marketing.”
He said Spectur also wants to buy more inventory to mitigate supply chain risks which exist.
Since coming into the top job around three years ago Dyson has reset the company’s business strategy and culture, and it’s starting to pay dividends.
The company was founded in 2009 and listed on the ASX in 2017, protecting people and property using sophisticated tech. Each camera system can sense, think and act in many ways, including to deter crime onsite, stop illegal rubbish dumping or warn against danger.
Spectur tech is found in diverse places ranging from beaches, parks, bushland, construction sites and defence facilities – those without easy access to cabled power or internet.
Its AI technology can process complex scenarios rapidly with a high degree of accuracy, with features including object recognition, people counting and even social distancing assessment.
“We are now a business which has much larger opportunities than being just a solar-powered security camera in Australia which was small thinking,” Dyson said.
“We’re now the only fully programmable, autonomous, sensing, thinking and acting platform in the world that is solar-powered, that we can see in the world.
“We have a hardware and software solution that can sense, think and act without any people, power cords or wired internet.”
Dyson said the tech can provide many of the functions of a person working in traditional security, warning and remote communication roles.
“Whether it’s acting like a security guard, role of a lifeguard or ranger or project manager, our system can do many of these tasks on its own and the beauty is it can be installed in an hour,” he said.
Dyson said the opportunity is vast and no other company is yet to follow in its footsteps, which would be hard.
“We have more than 20 million hours of systems in the field trialling and sharpening our axe,” he said.
“The hardware electronics and embedded software on the device plus cloud software we have designed and made.”
Spectur’s tech uses minimal power, enabling up to four cameras to be deployed where another system may only be able to take one or two.
“We have edge artificial intelligence which means the range of problems we can solve is as wide as your imagination,” he said.
“The analogy I like to use is we’re the first smartphone in a world of flip phones.”
Spectur services large corporations and governments with more than 600 active customers and 2,500 systems deployed.
“We don’t service consumers and our big customers are large utilities like Optus and Ventia. We have state government authorities, large construction contractors like Multiplex and John Holland,” Dyson said.
“We work with Surf Lifesaving and big not-for-profits along with defence contractors because we are the only Australian technology which does this, and when you have sensitive military assets care is needed.”
Spectur’s unweighted sales pipeline grew to $10.2m (weighted $3.55m), underpinning expectations of continuing growth into FY23.
“It’s more than doubled compared to the same time last year and that just speaks to what will happen to revenue in the next few quarters,” Dyson said.
Join a live investor briefing with managing director Dr Gerard Dyson on Friday, 29th July, at 1pm (AEST), where he will provide insights into how he believes Spectur’s first-mover advantage and wide technological moat leave the company with no direct competition in a large and growing market. Click here to book your spot.