Australian-based developer and manufacturer of security, surveillance, warning, environmental monitoring and AI solutions and platforms Spectur (ASX: SP3) disclosed its financial performance for the second quarter of FY24, highlighting notable achievements, including its best revenue month in history, December.
For the quarter ended December 31, 2023, Spectur experienced growth in recurring revenue, constituting 63% of the total revenues, equating to an annual run rate of $5.3 million. The total revenue for Q2 FY24 reached $2.1 million, up from $1.9 million in Q2 FY23.
December 2023 marked the highest consolidated group revenue at $848k and the second-highest for the legacy Spectur entity at $798k.
Spectur Managing Director, Gerard Dyson, commented, “While many took a break over the Christmas period, more than 2,000 systems and nearly 3,000 individual cameras within the Spectur ecosystem did not. Spectur provided security, safety, warning, data gathering, platforming and other solutions that helped to make our communities safer, smarter and more sustainable when people, power or wired internet were not available. It was particularly pleasing to note (over the break) the two young people saved from a rip at the Ruins campground near Forster in NSW, through rapid communications and deployment of lifesavers. Spectur makes a positive difference to our communities.”
Spectur’s core products are solar-powered systems integrating warning, surveillance, and environmental monitoring. These include AI and cloud platforms, connecting cameras, lighting, and audible warnings via 3G/4G or satellite.
The popularity of its products is evident in its Q2 FY24 sales performance, which reached $2.3 million, reflecting a 27% increase from Q1 FY24 and a substantial 66% increase from Q2 FY23. H1 FY24 sales of $4.1 million demonstrated a 51% increase over H1 FY23 results.
Key highlights for the quarter included a cloud-based Software as a Service (SaaS) pilot with a New South Wales council and a $100k contract awarded with a Queensland council for a joint Spectur and 3CT technology project in Q3.
Spectur executed some long-term contracts, too, including the Surf Life Saving NSW five-year contract for $1.2 million and the Southern Cross Protection five-year $614k contract, contributing to a minimum contracted revenue of $1.8 million.
Spectur generated $519k of net cash from operations, representing the highest in the Company’s history. Important aspects of cash flow include receiving $2.7 million from all customers in the quarter, marking a 19% rise from Q1 FY24 and a 26% increase from Q2 FY23. It also saw major debt reduction.
Dyson added, “Overall, we reduced our debt from $1.1m to only $250k in calendar 2023 whilst also executing two acquisitions (3CT and Spectur NZ). The debt reduction is part of the overall de-risking, balance sheet improving and profit-driving strategy that Spectur is executing.”
Spectur expressed confidence in its outlook for 2024, citing a strong sales pipeline, strategic focus in key sectors, and the introduction of innovative products. The Company anticipates continued opportunities in core markets such as government, utilities and construction, as well as expansion with resellers in security, sensing, and artificial intelligence.
Alinda is a Business Reporter for The Sentiment
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