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Redflex (ASX:RDF) generates $7.6M in orders for Q3 FY2020

Technology
ASX:RDF
20 April 2020 11:30 (AEST)
Redflex (ASX:RDF) - CEO, Mark Talbot

Sourced: Redflex

Traffic management developer Redflex (RDF) has generated $7.6 million in new business for the third quarter of the 2020 financial year.

The Melbourne-based company develops and implements a range of traffic management solutions for the Asia Pacific, North American, United Kingdom, European and Middle Eastern markets.

Its various products help to improve roadway safety, alleviate congestion and reduce the harmful impacts of vehicle emissions.

For the third quarter of the 2020 financial year, Redflex generated $6.1 million from multi-year project programs, as well as $1.5 million in new project orders.

Notably, the company saw an increase in the adoption of its HALO platform and associated support agreements.

Using a 3D high-definition radar, the HALO platform accommodates a range of applications, including red light, speed and stop sign enforcement, bi-directional capture, and vehicle classification.

As part of Redflex’s recurring revenue streams, the cities of Durham and Ottawa in Ontario, Canada, have signed contracts for speed camera programs similar to the one previously established in Toronto. The combined value of these contracts will total $2.8 million.

In addition, the Highways England maintenance agreement, awarded in the first half of financial 2020, will incorporate new installations worth $2.4 million.

In Redflex’s new business projects, a supply order worth $900,000 has been received from a Saudi Arabia-based customer, relating to the installation of support equipment.

Mark Talbot, CEO of Redflex Holdings, said that the company is in a resilient position with a strong pipeline of projects.

“The rolling 12-month sales pipeline remains strong with qualified opportunities in excess of $300 million.

“The company continues to focus on growing the pipeline globally and converting qualified opportunities into new business contracts,” he added.

Redflex shares have undergone no change, trading for 40 cents per share at 11:32 am AEST.

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