Had a listen to the investor presentation last night with Gerard. The key takeaways for me were:

• WA has been somewhat of a proof of concept given the constraints of lockdown there until recently. They’ve proven out to what they believe to be a scalable model but with room for improvement.
• Revenue run rate for WA is $2.4m. If they gain the same market penetration in the other states of Australia alone they’ll be earning circa $25m.
• Current focuses include: expanding into other states, improving the scalability such that the products are more “plug and play”, engage more resellers, NZ market, testing the waters in USA.
• Expecting similar growth for the coming quarters
• The costs of Macro headwinds are slowly being passed onto customers. However they’re cognisant of raising prices too quickly for new customers so as not to scare them off after they’ve worked so hard to get them. Except some margin reduction in the short term but will normalise and even improve in the medium term.

Overall a positive, confident tone to the call. High level of confidence in their products and the uniqueness and superiority over other solutions.

Quarterly Activities Report

Couple of interesting little nuggets regarding future sales strategies:

1. "Initial trials with a major Australian channel partner in the market, with potential to grow substantially in the future...potential to increase sales volumes of systems with a reduced cost compared to the current majority internal sales and rental model"
2. "Currently trialling its technology with a US partner who provides beach safety technology solutions. These trials are key to understanding potential future markets and the establishment of partner, and a supply chain prior to any formal expansion beyond current Spectur focus geographies"

While these points aren't immediately material, I'd say the are generally positive moves by the company.

Interestingly, if I recall correctly the interview with the CEO from a SM monthly meeting, he was adamant that they would not be expanding into the US and they were focussed on "dominating" the Australian market first. I'd have to go back and watch it again but from memory I believe he said he'd had experience in the US and sited cost as a major limitation and reason for businesses failing to meaningfully move into that market. Although I could definitely be wrong.

Spectur signs agreement with Australian Tower Network off the back of the recent Singtel Optus Contract.

Will be interesting to see if the company gains further traction in the telco space. Certainly the CEO has hinted there is more to come in recent interviews and his description of the industry is consistent with @elpaso96's recent insightful straw.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02471234-6A1070670?access_token=83ff96335c2d45a094df02a206a39ff4