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Why the MCG could help Future Fibre Technologies Ltd shares

Future Fibre Technologies Ltd (ASX: FFT) is a name that is likely unfamiliar to most investors, having only debuted on the ASX in May this year, but it could play an important role in the future.

The company, with a market value of roughly $120 million, develops and manufactures fence-mounted fibre optic perimeter intrusion detection systems. To put it more simply, Future Fibre Technologies sells advanced security systems that detect and locate perimeter intrusions while they can also protect data network communications cables. It so far has hundreds of installations in at least 55 countries around the world.

While Future Fibre Technologies’ products have typically been employed by some of the most security conscious customers out there, including military and government organisations as well as those in the oil and gas industries, it’s possible that those products could soon become more widely used.

As an example, the company announced just yesterday it had secured perimeter security contracts totalling over $2 million for major Middle Eastern international airports.

This followed another recent announcement highlighting an FFT technology upgrade at an international airport in Europe with a perimeter of more than 3 kilometres. It said: “During upgrade testing, our technology detected an intrusion on the perimeter fence. Cameras were automatically directed to monitor the situation while security was dispatched to intercept the intruder. It was a great opportunity to see our technology in action.”

MCG Security Fencing

Indeed, security has become a huge issue these days. Just look at the tragic events that played out in Paris recently, not to mention the various other attacks across Africa and the Middle East, to name just a few places.

Closer to home, the Australian Football League (AFL) has even announced the famous Melbourne Cricket Ground, or the MCG, will be fenced off to patrons who “will have to undergo bag checks and metal detection” as part of a new security overhaul to be introduced this summer. Cars entering the MCG car-park will also be searched while car parking will be pushed further back from the stadium, helping to reduce the threat of any potential attacks.

At this point, the measures are only precautionary and will be in place for the Boxing Day Test and the Big Bash League fixtures (amongst various other events), while the Melbourne Cricket Club is also in discussions with the AFL regarding security arrangements in 2016.

Based on the information I’ve read, these are just ordinary fences and certainly don’t appear to be anything like Future Fibre Technologies’ “fence-mounted fibre optic perimeter intrusion detection systems”.

But, at least in my opinion, it does highlight a future for Future Fibre Technologies and its products, especially in the event that attacks around the world do continue to elevate.

Future Fibre Technologies’ share price has risen a little over 3% today to $1.02 per share, which compares to a 1.3% rise for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) benchmark index.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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