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Spectur (ASX:SP3) enters trading halt after cash flow positive Q4 FY20

The Market Online Deal Room
ASX:SP3      MCAP $5.680M
02 July 2020 11:10 (AEDT)
Spectur (ASX:SP3) - Managing Director, Gerard Dyson

Source: Spectur

Security systems provider Spectur (SP3) has entered a trading halt this morning pending the release of a capital raising announcement.

The company has requested a back-to-back trading halt and shares will remain in the grey until July 9 or when the announcement is made.

Operational and activities outlook

Yesterday, Spectur announced its operational and activities outlook for Q4 FY20.

Cashflow

For the quarter, the company had a cash inflow of $87,000, bringing the total cash reserves to $1.618 million for the close of FY20.

Due to cashflow being increased by government support, Spectur significantly reduced its underlying cash consumption from $532,000 in Q3 to $100,000 in Q4.

This equates to an average consumption of $33,000 per month, compared to $177,000 per month in the previous quarter.

However, because of COVID-19, revenue was down in Q3 due to a slow recovery post-Christmas and cautious customer decision making.

STA6 platform

Spectur’s STA6 platforms are now in active field trials after nearly a year of development, with first deliveries expected later this month.

STA6 provides security solutions, surveillance, and warning applications.

It has advanced motion detection to minimise false alarms, live viewing, remote programming, and licence plate recognition amongst many other services.

It can detect in a wide range of lighting conditions and it has a 360-degree field-of-vision with no blind spots.

Once launched this will give Spectur multiple new revenue streams.

Collaboration agreement with CSIRO

During the quarter Spectur entered a long-term collaboration agreement with CSIRO’s data science and technology arm, Data61.

This agreement forms the basis of a suite of expanded AI (artificial intelligence) applications that can be used in tandem with STA6.

Data61 will create a range of AI applications for STA6.

Appointment of sales executive

On July 1, a new Sales Executive was appointed to focus on the NSW Government and utility markets.

Partnership with Deus Ex

Finally, during the quarter, Spectur signed a memorandum of understanding with Kiwi systems integration company Deus Ex to expand into the New Zealand market.

“FY21 is going to be an exciting year for Spectur with a number of new expansion avenues that, together, we expect will drive rapid top-line growth,” Managing Director Gerard Dyson commented.

“We have largely concluded the recruiting and development of our onboard sales team. Our new website and digital marketing platform is well advanced and expected to be progressively deployed in the next two months,” he said.

“Spectur has an exciting new product platform, with improved functional performance as well as an expanding range of applications,” he added.

Shares in Spectur last traded for seven cents each on July 2.

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