Commencing trading on the ASX today, road safety technology company Acusensus (ASX: ACE) is officially the new kid on the block. Kicking off their public profile with a bang, their long line up of future projects with government agencies may see them quickly added to investor watchlists.
The Company proudly shared some exciting overview and updates regarding its current projects, beginning with the commencement of its ACT Mobile Device Detection Cameras Services Agreement with the ACT Government. The service agreement will commence effectively from 1 February 2023 and accordingly, it is expected that revenue will start to be generated from this date. The agreement is valued at an estimate of $9.1m over a maximum five year term, inclusive of an initial three-year term with the potential to be extended for two one-year periods, at the option of the ACT Government.
Next up, there also comes an agreement revision update from Acusensus’ multi-year contract with Transport for NSW. As a background, In October 2022, the NSW Government announced that roadside signages are required to be displayed for all mobile speed camera deployments, positioned before and after vehicles during enforcement operations from 1 January 2023. Acusensus and Transport for NSW’s previous service agreement will then require some alterations to fulfill the new requirements, therefore both parties entered into a variation agreement on 29 December 2022 to amend the Mobile Speed Camera (MSC) Contract to reflect the provision of signage.
Acusensus is currently involved in several tender processes to provide services across areas including speed, mobile phone enforcement and seatbelt compliance in various jurisdictions in Australia, the United States and in the European Union. The Company admitted that they are currently at differing stages of these tender opportunities, and this includes being at the final stages of certain processes. It is, however, not specified further which tender(s) have progressed to the final stages. While there is no guarantee of success, Acusensus expects that two of these tender opportunities will be concluded in early 2023.
Acusensus aims to improve road safety around the world by providing Artificial Intelligence (AI) powered traffic solutions to drive behavioural change on the roads using the Heads-Up solution, a technology that takes clear high-resolution photographs through the windshield of each vehicle that passes to detect illegal mobile phone use by using real-time AI systems. Contracts with government agencies put Acusensus’ hopes up in gaining market share early, therefore reinforcing its advantage as a preferred technology partner for enforcement authorities.
Acusensus looks forward to increasing FY23 revenue by approximately $3m through its current projects and tenders. However, we are hoping that the predicted increase in revenue will also be accompanied by other cost-saving strategies to avoid rocky waters ahead. The reason for this, is that Acusensus’ pre-IPO financial performance forecasted a profit loss of $1.7m in FY23 due to heightened wages and administration expenses. This can be tied back to the Company’s international expansion plans and increase in business scale.
Clara is a Business Reporter for The Sentiment.
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