Solar security and visual artificial intelligence (AI) solutions company, Spectur (ASX: SP3), has locked in a financial commitment, receiving an advanced payment of $614k from Southern Cross Protection (SXP), representing the full amount of the contract.
The agreement between the two companies focuses on multi-year SpecturConnect+ subscriptions and services tailored to enhance security infrastructure. Under the terms of the contract, Spectur will provide SXP with comprehensive subscription, data, and warranty services designed to support its existing systems over a five-year period. The upfront payment of the full contract amount underscores the seriousness of this collaboration.
This cash injection will initially be reflected in Spectur’s balance sheet as unearned revenue and cash, gradually transitioning into revenue over the contract’s duration. This financial arrangement underscores the commitment shared by both companies towards the long-term success of Spectur’s advanced security platforms.
Spectur Managing Director, Gerard Dyson, said, “Spectur has been working with SXP since 2021 and presently has more than 70 systems deployed and integrated with their guard, patrol, monitoring and related services. Spectur provides a holistic hardware, software, app, installation and support service that allows security providers to focus on their core business without having to become hardware and software integrators.”
SXP is a mobile patrol company operating nationally with 28 local branches. It leverages Spectur’s GuardView technology solution to augment its existing operations, providing a comprehensive security solution to its clients.
Dyson further highlighted, “With over 2,300 Spectur platforms and nearly 3,000 cameras currently deployed within our ecosystem, we have demonstrated our ability to build scalable, reliable, effective, and user-friendly systems.”
The impending release of Spectur’s new STA7 and HD6 platforms and the recently launched STA-Power and STA6-240X systems shine some light on Spectur’s enhancing product portfolio. Collaborations with clients like SXP are instrumental in shaping what Spectur believes can become an industry-standard platform for security providers.
In FY23, the Company’s revenue was 26% up on FY22, amounting to $7.4 million. Its rental services brought in the major chunk of revenue at 31%, followed by system sales at 28%. Spectur has deployed over 2,900 devices, serving more than 600 customers, and achieved a remarkable 45% growth in FY23 through its reseller push. Looking ahead to 2025, the Company aims to pivot towards online sales for its systems while exploring expansion opportunities.
For now, however, the Company expects the SXP win to underpin further growth as it deploys the GuardView solution. The advanced payment also supports Spectur’s ability to develop solutions for resellers, including security providers, hire companies, AI solution providers, and various other entities.
Alinda is a Business Reporter for The Sentiment
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