Orcoda signs $800k contract with Aurizon for LED lighting at rail yards

Aurizon’s rail yards are set to be lit up with Betta’s LED lighting tech. Logistics optimisation and infrastructure services company Orcoda (ASX: ODA) has announced a significant contract agreement through its subsidiary, Betta Group of Companies Qld. The $800,000 contract has been signed with Australia’s largest rail-based transport business Aurizon Operations. The contract involves the delivery and installation of LED lighting at Aurizon’s Callemondah Rail Yard, with revenue expected to ring in in H1 FY24.

The project is part of Aurizon’s energy efficiency implementation program aimed at enhancing the Company’s energy efficiency and reducing energy consumption. The initiative combines various upgrades, including solar installations, LED lighting, control systems and other enhancements. 

Orcoda Managing Director, Geoff Jamieson, said, “Aurizon is a long-term core client of Betta Group, and we are pleased to be awarded this contract and be part of Aurizon’s drive to roll-out cost-effective and energy efficiency initiatives across their facilities portfolio to reduce emissions.” 

Orcoda specialises in providing smart technology solutions for transport logistics and services, focusing on road, rail, and air sectors. Its expertise lies in enhancing operational efficiency and offering best-in-class solutions that integrate technology, management expertise, and contracting services. It gives clients fast, accurate, and reliable information to make business decisions.

The Company has been experiencing positive momentum in terms of quarterly receipts from customers and total income. The year-to-date customer receipts have reached $16.6 million, representing a significant 29% increase compared to H1 FY22. Additionally, the total income for the same period has reached $15.5 million, demonstrating a robust growth rate of 28%. These results indicate that Orcoda is on track to surpass its FY22 results.

At the end of the Q3 FY23, Orcoda reported a cash and cash equivalent balance of $4.4 million, marking a notable increase from the previous quarter’s $2 million (as of December 31, 2022). This growth can be attributed to positive operating cash flows, new borrowings of $700k, and a $1 million share placement to existing shareholders. As of March 31, 2023, Orcoda’s available working capital, inclusive of unused facilities, amounted to $5.4 million, providing the Company with considerable flexibility to invest in organic and inorganic growth opportunities.

During the March quarter, Orcoda witnessed a 33% increase in customer receipts, totaling $5.3 million. This growth was primarily driven by the increased adoption of Orcoda’s software technology platforms. The Company’s year-to-date total customer receipts amounted to $16.6 million, reflecting a substantial 29% increase from the previous corresponding period. In terms of cash inflows from operations, Orcoda reported $1 million for the quarter, marking a significant 240% surge compared to the previous corresponding quarter. The year-to-date total cash inflows from operations reached $1.4 million.

Orcoda has also recently announced a contract with Australian business Northline for an initial term of three years. This contract is expected to generate revenue of approximately $900,000 during the initial term, comprising monthly license fees, implementation costs, and training fees, all subject to annual reviews. The agreement significantly enhances Orcoda’s recurring software revenue.

With strategic contracts in place, Orcoda appears to be poised for continued growth and success in the transport logistics and services industry.