Traffic signal and road management technology company Redflex has reported strong sales growth in the fourth quarter of FY2020, with $8.7 million in new contracts let, up 15 per cent on the previous year.
The company wrote new equipment sales contracts and recurring annual revenue management contracts as it continued to build sales throughout the year.
The company generated new business orders of $157 million in the year ending 30 June, an increase of 250 per cent on the previous year.
The latest contracts were for:
- Additional equipment for installation on Belgium roads
- New point to point vehicle speed systems for Queensland motorways
- Additional municipalities in Ontario, Canada adopting speed camera programmes similar to those in use in Toronto
- And expansion of maintenance services in a number of Asia Pacific nations.
Redflex told investors the new contracts written in FY2020 had been weighted towards multi-year programmes which will generate $18 million in annual revenue once operational.
Group chief executive Mark Talbot said there were encouraging signs for the company that traffic volumes in its markets had grown as mobility restrictions were lifted.
New large programmes were being implemented in Los Angeles and Toronto.
Talbot said: “As mobility restrictions have eased many procurement processes have recommenced.
“Our pipeline conversion in (the fourth quarter) was solid, particularly for new project orders.
“The rolling twelve month pipeline remains in excess of $300 million and we are well placed to continue to drive opportunity conversion.”
Picture: Redflex speed camera
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