Customer service software provider for retailers and retail banks, RocketBoots (ASX: ROC) has announced two significant agreements in the UK. The first agreement is with a major retail bank in the UK, part of the prestigious Big 4, while the second is with the Scottish Midland Co-op Society, overseeing around 200 retail grocery stores across the UK. The combined value of both contracts is an impressive $54,800.
Chief Executive Officer, Joel Rappolt, said, “Building new sales and delivery capabilities in the UK has been a great experience for the RocketBoots team. We have confirmed that our Australia-based team can deliver internationally & have also uncovered opportunities to further streamline and speed up our integration into client sites.
“The successful completion of our first trial in the UK was also an important milestone for the team, and I expect to travel to the UK imminently to continue contract extension discussions with all customers.”
The Big 4 contract with the National Westminster Bank, initiated on June 19, 2023, with an initial three-month term, has concluded successfully. The bank, expressing satisfaction, has requested the extension of the initial branches on a monthly, while discussions for a broader rollout are ongoing. The annual contract value for the live sites is approximately $42,000.
Notably, the contractual arrangement allows the customer to pay in monthly instalments with the flexibility to terminate at any time. The announcement highlighted how this strategic flexibility showcases RocketBoots’ capacity not only to sell but to deliver successfully in the region. This contract follows another win for RocketBoots, securing a deal with a major New Zealand client, ASB Bank Limited, for an impressive $92.4k.
In addition to the banking success, RocketBoots has secured a trial contract with the Scottish Midland Co-operative Society Limited (Scotmid). Operating over 180 retail grocery stores in the UK, Scotmid will trial RocketBoots’ self-checkout loss prevention software at a contract value of approximately $12,800. The trial is set to conclude by March 2024, providing an opportunity for the customer to terminate at any time.
With these developments, RocketBoots now boasts four customers with contracted installations of its software in various sites across the UK.
Financially, Q1 FY24 has seen RocketBoots experience increased cash inflows, reaching $628k, the highest since its listing. However, cash outflows also increased to $1,053k due to irregular payments, including new trial hardware, a three-month USA sales-related contract, and audit expenses. The net cash from operating activities stands at ($424k), and RocketBoots concluded the quarter with $1.2 million in cash and cash equivalents.
Looking ahead, RocketBoots remains optimistic about continued growth in its pipeline, driven by expanded direct and channel-based sales outreach activities, particularly in the EU and US markets.
All the recent contracts are delivered on RocketBoots’ existing software and platform. The Company anticipates that having live sites in the UK will serve as a strong reference point, facilitating the conversion of more opportunities in the region.
Alinda is a Business Reporter for The Sentiment
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