Traffic management systems developer Redflex (ASX: RDF) has recovered from the loss of a major contract to post a strong result in its latest year.
Chairman Adam Gray told the company’s annual general meeting that the company had recovered by investing in its people and technology and in international marketing.
During the 2019 financial year Redflex reported EDITDA up 32 per cent to 16.2 million on sales up 11 per cent to $117 million, and the third successive year of better margins.
Redflex makes speed and red light cameras as well as vehicle monitoring and enforcement products and services for law enfiorcement agencies.
In the year legislation in Texas banned road traffic photo enforcement accounting for 13 per cent of the company’s top line, forcing a swift respose.
During the year the company invested in R&D and market expansion, winning new customers in the United States and Britain.
Gray said investment has leveraged the company’s expertise in photo enforcement, managed motorways and urban mobility.
“As a result…Redflex has elevated its competitive posture and has established the foundation for meaningfully improved financial results.”
The company also reported continuing business momentum..
The first quarter of this year has seen a 42 per cent increase in new business orders, with $69 million in new business written.
Gray praised staff and CEO Mark Talbot for recovering the company’s position
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