It has been a great start to the week for shareholders of Dorsavi Ltd (ASX: DVL). In early trade its shares have jumped over 6% to 51 cents following the release of a positive announcement.
For those that aren’t familiar with the company, dorsaVi serves the organisational health and safety, clinical, and elite sports markets with its patent protected technology.
This morning the company announced that it has signed a 12-month contract with Heathrow Airport which will see dorsaVi deliver a range of ViSafe services.
ViSafe is dorsaVi’s health and safety wireless sensor technology that tracks and measures how people move in real-time work situations, allowing companies to assess risky movements.
In 2015 Heathrow Airport asked dorsaVi to assess the musculoskeletal impact of using manual handling aids for the transfer of airport baggage, versus the impact of transferring baggage without the use of aids.
The results of the study led to compliance with manual handling aids among baggage handlers increasing from 20% to 80%.
Heathrow Airport now plans to make a large terminal-wide investment in new manual handling aids. Two products have been shortlisted by the airport and ViSafe will be used to assist in the decision-making process.
The data will also be used to help optimise manual handling practices. After which it will be used in an interactive training application and an internal communications campaign in an effort to create behavioural change.
Finally, the company’s recently launched myViSafe application will be used through the baggage handling area to monitor and promote safe workplace practice. Although the app only launched at the start of the month it is already attracting significant interest. Crown Resorts Ltd (ASX: CWN) is another company using it throughout its Melbourne and Perth businesses.
According to the release the project is estimated to be worth more than $100,000 to dorsaVi, with additional annuity revenue coming in via the myViSafe app.
Although it is often compared to Catapult Group International Ltd (ASX: CAT) due to its sports analytics segment, as far as I’m concerned the key driver of growth will be its health and safety segment.
One case study from a large organisation revealed that the introduction of ViSafe resulted in a drop from 72 injuries per quarter to just one. With work injuries estimated to cost businesses US$250 billion a year in the United States, I don’t believe it is hard to see why the technology has enormous potential.
At this stage it would still be classed a high risk investment though. So for that reason I would restrict it to just a small part of your portfolio.
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