With the convenience of eCommerce and having goods delivered to your door, it’s no surprise that doorstop theft has become one of the biggest issues facing the industry. It’s why smart lockers from TZ Limited (ASX: TZL) are proving immensely popular and swinging the Company into profitability following a global restructure of their operations and the return of their Founder as CEO.

For the Half Year ended 31 December, TZL reported $8.05 million in sales revenue which delivered EBITDA of $677k. This was a dramatic improvement on the $3.5 million loss reported in the previous corresponding period, which saw the departure of the former CEO Mario Vecchio and return of John Wilson, who founded the Company originally.

The immediate impact of Wilson was outlined as a business transformation and cost reduction initiatives which have been pivotal in driving improved operational efficiencies. These initiatives have yielded tangible results, with the company reporting a net profit of $177,000 compared to a $4 million loss in the previous year.

One of the key drivers of this turnaround has been the robust growth in recurring revenue, expected to reach $320,000 per month by the end of FY24. This growth is attributed to the uptake of cloud subscription and maintenance services, as well as the successful implementation of hardware preventative maintenance offerings across all markets.

TZ’s OPeL Locker offering has also seen strong sales growth, particularly in the USA, with promising prospects in the education sector. The Company’s strategic focus on building out its product offerings and technological capabilities has positioned it well to capitalise on emerging market opportunities.

Wilson expressed satisfaction with the company’s turnaround efforts.

“The focus on streamlining the business and reducing costs whilst maintaining our competitive advantage in the market has delivered positive results for the business and our shareholders,” he said.

“We are driven to continue to build on this positive half with the existing pipeline of business and explore new customer relationships and segments where we now have a compelling offering.”

He highlighted the positive trajectory of the business and reaffirmed TZ’s commitment to exploring new growth opportunities.

The restructure of support services, including the relocation of key functions to Australia and the US, has played a pivotal role in optimising operational efficiency. Moreover, the resolution of outstanding corporate issues and the simplification of remuneration strategies have further strengthened the company’s foundation.

Looking ahead, TZ Limited remains cautiously optimistic about future prospects, acknowledging potential challenges including customer adoption rates, implementation cycles, and economic conditions. However, with a strong niche in the market and a commitment to innovation, the company is well-positioned to navigate these challenges and sustain its growth trajectory.