Orcoda delivers 21% income boost through FY24, flags growth through smart city transport solutions

Transport management and tech company Orcoda (ASX: ODA) has continued to build its reputation as a preferred supplier of community transportation, flagging a 21% increase in revenue for FY24 off the back of new contract wins with recurring revenue. 

Several major contracts significantly contributed to Orcoda’s revenue surge. The completion of the $6.8 million Aurizon Newlands RCS contract by Betta Group, upgrades by Future Fleet from 3G to 4G/5G, and the integration of new transport software solutions were pivotal. 

Orcoda’s Managing Director, Geoff Jamieson, highlighted the successful delivery of these contracts which built momentum heading into FY25. 

“During the Quarter, Orcoda was appointed by Australian Community Transport Association (ACTA) as part of a fully funded Commonwealth Government trial which commenced on 1st July 2024,” said Jamieson. 

“The purpose of the trial is to address the need to make community transport (CT) sustainable and maintain a high quality of service, if the trial is successful then ACTA and Commonwealth Government will develop a national strategy in 2025. 

“We look forward to releasing our complete full year audited financial results in late August, although I’m pleased to preview that, based on these preliminary results, we have delivered another record year of total income and profits. 

“On the back of strong progress in our technology platform and processes, new product launches and the Future Fleet acquisition, I am increasingly optimistic that we can further accelerate penetration of our addressable markets and substantially grow our recurring revenues moving forward.”

Orcoda reported a total income of $5.5 million for the June Quarter, a 5% increase compared to the previous corresponding period (pcp). For the entire FY24, the total income reached $25.2 million, marking a 21% rise over the previous year. The Company’s cash position remains strong, ending the June Quarter with a cash and cash equivalents balance of $3.9 million, and an available working capital of $4.9 million.

Orcoda’s Transport Technology division continued its success in promoting its proprietary transport management software and Future Fleet’s fleet management solutions. The division implemented the Orcoda transport optimisation software for Mini-Tankers across Australia and supported key clients like Northline with paid upgrades. 

Future Fleet delivered strong financial results, driven by the upgrade of 4G/5G devices in customer vehicle fleets ahead of the Telstra 3G network shutdown. The Company is ramping up cross-selling and product integration between Future Fleet and Orcoda software to enhance its market presence in telematics, cold chain solutions, AI camera solutions, bus & coach solutions, IoT solutions, and AI-driven satellite and 4G/5G tracking solutions.

Orcoda continues to execute its long-term vision of developing an ecosystem of Intelligent Transport Management Systems (ITMS) providing AI-driven Big Data for managing Smart Transport Corridors and Smart Cities. 

The Company’s digital transformation capability and AI optimisation are driving its SaaS platforms, delivering fully integrated transport solutions to clients. With the rapid growth in AI, connected cars, and digital transformation, Orcoda is optimistic about the future potential of Smart Transport Corridors and Smart Cities.