In the June quarter to date, smart transport technology solutions provider Orcoda’s (ASX: ODA) subsidiary Future Fleet has secured major new sales orders.
Just six weeks into Q4 FY24, orders exceeded $640k, with revenue expected to be booked over the next few months. These orders will also contribute about $300k in annual recurring software revenue going forward.
Orcoda’s Managing Director, Geoff Jamieson, said, “These orders from new customers and the successful 3G to 4G/5G upgrades for existing customers demonstrate the strong momentum in Future Fleet and is a testament of the team’s dedication. I look forward to continued momentum within this business.”
He added, “Future Fleet’s key strategy moving forward will focus on winning more new customer sales, supporting and upselling existing customers, as well as capitalising cross-selling opportunities between Future Fleet and Orcoda.”
Future Fleet is a Brisbane-based provider and innovator of fleet management systems, including telematics, asset tracking, AI-powered driver fatigue and distraction detection technology as well as cold chain logistics assurance services in Australia and New Zealand.
Orcoda acquired Future Fleet on July 1, 2023, to complement Future Fleet’s fleet management systems with Orcoda’s transport booking, transport management and optimisation software capabilities.
Future Fleet’s key strategic priority in FY24 has been the 3G to 4G/5G upgrades for existing customers’ vehicle fleets prior to the scheduled 3G network shutdown on 30 June 2024. This shutdown was recently extended by two months to August 31, 2024. In addition to these upgrade works, Future Fleet continues to win new orders from both existing and new customers
In Q3 FY24, Orcoda reported continued growth in customer receipts of $5.5 million, a 2% uptick on the previous corresponding period. This was another consecutive quarter of positive operating cash flows with $300k.
In the same period, transport services company Betta Group—which Orcoda acquired in 2020—executed the $4.1 million Yurika Pembroke Olive Downs contract. The quarterly growth in Orcoda’s sales was driven by contributions from Future Fleet and Transport Software, offsetting the lower customer receipts received by Betta Group as most of its projects were negatively affected by severe wet weather conditions from December to February.
The Company has been witnessing strong year-to-date (YTD) FY24 results, which are on track to exceed FY23 full-year results. Its YTD customer receipts were up 28% on PCP to $21.3 million, with operating cash flow at $2.2 million, a 61% increase and total income of $19.7 million, a 27% increase.
Plus, YTD, large SaaS contracts, such as Northline, Comlink Australia and Mini-Tankers (an entity of Refuelling Solutions), were successfully implemented, adding about $60k per month or $700k per annum in recurring revenue. During the quarter, the Company was also awarded four new SaaS community transport contracts, and commercial discussions are ongoing with additional prospective community transport providers.
With Future Fleet bringing in new customers, too, the Company can hope to wrap up the year on a positive note.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.