Spectur nails down long-term government contract as sales gather momentum

Spectur (ASX: SP3), a specialist in smart security systems powered by solar technology, has locked in a three-year agreement valued at close to $800,000 for the provision of its cameras and analytic services to government agency Transport for New South Wales.

The contract also allows for a potential site expansion which could help boost the contract value by between $50,000 and $200,000 per annum across the three-year period, driving its total to nearly $1.4 million.

Furthermore, the agreement includes an option to extend the collaboration with Transport for NSW for up to six more years, which could see the contract’s value balloon to more than $2.3 million over the longer timeframe.

The deal builds on a recently extended smaller agreement between Spectur’s wholly owned entity, 3 Crowns Technologies, and Transport for NSW. This will now be replaced by the new arrangement early in the new year.

It follows on from other substantial contract wins secured by 3 Crowns Technologies during the first quarter of the current financial year, coupled with general growth in Spectur’s operations.

Spectur has now generated $4.18 million is sales in the current fiscal year (through to November 13), representing a 90 per cent surge from about $2.2 million at the end of October 2024. In addition, management noted that a substantial portion of the recent sales consist of longer-term contracts which are yet to be converted into revenue. 

Spectur managing director, Gerard Dyson, said:

“Spectur continues to win increasingly large projects as evidenced by the year-to-date sales. This funnel of revenue continues to grow and is the product of many years of cultivation that are bearing rewards now and into the future. Ongoing strong, high margin sales, combined with recent cost control activities in response to productivity improvement, underpins the ‘fitness’ of Spectur going forward.”

Dyson added that the portion of revenue attained from high gross margin recurring streams continues to increase, reaching current run rates of more than 60 per cent of Spectur’s overall total.

According to Dyson, the expanding base of lager contract wins – including the new deal with Transport for NSW – stem from the growth of relationships and accounts already nurtured by the company.

In turn, Spectur sees potential to broaden its sales opportunities by including third-party artificial intelligence (AI), sensors, cameras, devices, as well as other applications. Dyson noted that the Spectur ecosystem is on its way to becoming a core platform for many of the group’s clients, coupled with a rising number of resellers.

The new agreement with Transport for NSW will see Spectur deliver live webcam vision through its night vision-enabled cameras across 23 existing locations. However, the duo is evaluating the potential to expand their collaboration beyond these current sites. The company will also be responsible for all hardware supply, installation, maintenance, software, and data provisions as a managed service.

Spectur recently implemented a string of cost reduction activities in response to productivity improvements to its operations. All up, it plans to slash expenses by between $1.15 million and $1.3 million per annum, which is expected to see the company become operating earnings (EBITDA) positive in FY26 and beyond.