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Redflex scores $15M deal with Victorian State

Technology
ASX:RDF
24 July 2019 06:16 (AEST)

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Redflex Traffic Systems, a subsidiary of Redflex Holdings, has landed a contract deal with the State of Victoria to provide its services to the state.

Under the new agreement, Redflex will provide maintenance services for over 150 fixed speed cameras throughout Victoria. The contract is for a three year term, with two 12-month options for potential extension.

According to Redflex, the agreement signed through the Department of Justice and Community Safety (DJCS) is expected to bring in up to $15 million.

Redflex management said the company has been maintaining fixed speed camera throughout Victoria for several years. As such, this recent agreement is a reflection of Redflex’s commitment to helping the state enforce road safety.

This is the second major contract locked in by Redflex in recent months, and not just in Australia. In May this year, Redflex scored a $43 million deal with the Pennsylvania Turnpike Commission and Pennsylvania Department of Transportation.

The U.S. contract was for the operation of the Statewide Automated Work Zone Speed Enforcement Program. Essentially, Redflex is contracted for up to six years to provide equipment, data collection services and violation and appeals processing to the Commission and the Department for Work Zones in Pennsylvania.

Redflex focusses on developing and implementing traffic management products and services. Its products include red light cameras, speed cameras, auto number plate recognition technology, and school bus stop arm camera systems.

Redflex shares remain unchanged after today’s announcement, last trading at 41 cents a piece in a $61.59 million market cap.

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